CCL Ecos2

What are the participants in the economy according to the circular flow?

• Doctors, engineers, artists, and athletes

• Students, teachers, parents, and the local community

• Farmers, fishermen, miners, and factory workers

• Households, businesses, government, and the foreign sector

What is the real flow in the economy?

• The flow of goods and services

• The flow of savings by households

• The flow of money for salaries

• The flow of loans from banks

What does the government buy in the circular flow model?

• Goods and services

• Factors of production

• Public services and infrastructure

• Savings and loans

What type of economy does South Africa have?

• Mixed economy

• Socialist economy

• Closed economy

• Open economy

What are the two main types of markets mentioned in the text?

• Goods market and factor market

• Stock market and real estate market

• Technology market and healthcare market

• Import market and export market

What are the two important flows in the circular flow model?

• Savings flow and loan flow

• Real flow and money flow

• Export flow and import flow

• Tax flow and subsidy flow

What are considered as leakages out of the flow in the economy?

• Factor market, goods market, and foreign sector

• Savings, taxes, and exports

• Loans, subsidies, and grants

• Imports, consumer spending, and government spending

What does GDP stand for?

• General Data Protection

• Global Distribution Process

• Gross Development Plan

• Gross Domestic Product

What does GDP represent?

• The market value of all the final goods and services produced within a country

• The total population of a country

• The total land area of a country

• The number of businesses in a country

How is GDP calculated according to the expenditure approach?

• GDP = private consumption + gross investment + government spending + (exports - imports)

• GDP = C + I + G + (X - M)

• GDP = total income - total expenditure

• GDP = total savings + total taxes + total imports