Economics Worksheet: Circular Flow and Related Concepts

... refers to a model that shows the movement of production, income and Expenditure between the participants.

• A. Multiplier

• B. Circular flow

• C. Business cycle

• D. Philips curve

Autonomous consumption is ...

• Spending in the economy that is influenced by the level of income.

• Spending in the economy that is influenced by an increase in salaries.

• Spending in the economy that is influenced by a decrease in salaries.

• Spending in the economy that is not influenced by the level of income.

The total value of remuneration that the owners of factors of production receive for their share in the production process is known as ...

• National Income

• National expenditure

• National production

• National money

Which of the following represent the inflow of cash in the circular flow diagram?

• A. Injections

• B. Savings

• C. Leakages

• D. Induced consumption

The following is an example of money flow ...

• aggregate consumption

• quantities of goods and services

• Income for factors of production

• Public goods and services

Choose a description from COLUMN B that matches an item in COLUMN A. Write only the letter (A–F) next to the question number (1.2.1) in the ANSWER BOOK. 1.2.1 Import tariffs Which letter matches 'Import tariffs'?

• F. This refers to the tax charged on the inflow of goods and services.

• D. GDP is calculated by considering the remuneration for factors of production such as interests and rent.

• A. This is charged by SARB to commercial banks when they lend them money.

• B. A group of people elected by the citizens to manage the economy through effective policies.

• C. Is also known as a 45° line which represent equality in a multiplier graph.

Choose a description from COLUMN B that matches an item in COLUMN A. Write only the letter (A–F) next to the question number (1.2.2) in the ANSWER BOOK. 1.2.2 Income method Which letter matches 'Income method'?

• D. GDP is calculated by considering the remuneration for factors of production such as interests and rent.

• A. This is charged by SARB to commercial banks when they lend them money.

• E. GDP at nominal value/prices.

• B. A group of people elected by the citizens to manage the economy through effective policies.

• C. Is also known as a 45° line which represent equality in a multiplier graph.

Choose a description from COLUMN B that matches an item in COLUMN A. Write only the letter (A–F) next to the question number (1.2.3) in the ANSWER BOOK. Which letter matches 'Government'?

• E. GDP at nominal value/prices.

• A. This is charged by SARB to commercial banks when they lend them money.

• B. A group of people elected by the citizens to manage the economy through effective policies.

• D. GDP is calculated by considering the remuneration for factors of production such as interests and rent.

• C. Is also known as a 45° line which represent equality in a multiplier graph.

Choose a description from COLUMN B that matches an item in COLUMN A. Write only the letter (A–F) next to the question number (1.2.4) in the ANSWER BOOK. 1.2.4 Repo rate Which letter matches 'Repo rate'?

• This is charged by SARB to commercial banks when they lend them money.

• Is also known as a 45° line which represent equality in a multiplier graph.

• GDP at nominal value/prices.

• A group of people elected by the citizens to manage the economy through effective policies.

• GDP is calculated by considering the remuneration for factors of production such as interests and rent.

Choose a description from COLUMN B that matches an item in COLUMN A. Write only the letter (A–F) next to the question number (1.2.5) in the ANSWER BOOK. 1.2.5 Equilibrium Which letter matches 'Equilibrium'?

• C. Is also known as a 45° line which represent equality in a multiplier graph.

• D. GDP is calculated by considering the remuneration for factors of production such as interests and rent.

• E. GDP at nominal value/prices.

• A. This is charged by SARB to commercial banks when they lend them money.

• B. A group of people elected by the citizens to manage the economy through effective policies.