CIRCULAR FLOW OF INCOME

Which of the following is not considered a factor income?

• rent

• wages

• gifts from abroad

• profit

Two sector economy consists of:

• households, firms

• firms, foreign sector

• households, government

• firms, government

In a closed economy, ........................... is not included?

• households

• firms

• government

• Foreign sector

This studies economy-wide phenomena.

• Macroeconomics

• Microeconomics

It is the branch of economics that deals with the structure, performance, behavior, and decision making of the whole, or aggregate, economy.

• Macroeconomics

• Microeconomics

Which of the following is a leakage?

• Investment

• Government spending

• Import

• Export

Which of the following is an injection?

• Savings

• Investment

• Taxes

• Imports

What is the payment received for capital?

• Rent

• Wages

• Interest

• Profit

What is the payment received for labor?

• Rent

• Wages

• Interest

• Profit

What do Firms provide for households?

• Goods and Services

• Taxes

• Loans

• Savings