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Understanding the Circular Flow ICE TASK 1

Authored by Nomzamo Mbuthu

Education

University

Used 4+ times

Understanding the Circular Flow ICE TASK 1
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9 questions

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1.

MULTIPLE CHOICE QUESTION

45 sec • 5 pts

Which of the following is considered a leakage in the circular flow of income?

Government spending

Business investment

Savings by households

Export earnings

2.

MULTIPLE CHOICE QUESTION

45 sec • 5 pts

The role of financial institutions in the circular flow is to produce goods and services.

True

False

3.

MULTIPLE CHOICE QUESTION

45 sec • 5 pts

What kind of income does capital earn?

Rent

Wages

Interest

Profit

4.

FILL IN THE BLANK QUESTION

45 sec • 5 pts

A stock is measured at a specific point in time, while a _____ is measured over a period of time.

5.

MULTIPLE CHOICE QUESTION

45 sec • 5 pts

Which of the following is NOT a type of firm described in the LU1 slides?

Sole proprietorship

Public company

Limited liability society

Multinational company

6.

MULTIPLE CHOICE QUESTION

45 sec • 5 pts

Which item is an example of an injection in the circular flow?

  • Imports

  • Government spending

Savings

7.

MULTIPLE CHOICE QUESTION

45 sec • 5 pts

If in a given year, South Africa has higher leakages (S + T + Z) than injections (I + G + X), what will happen to the national income?

It will increase

It will stay the same

It will decrease

There will be hyperinflation

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