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WorksheetsCircular Flow of Income
Total questions: 10
Worksheet time: 10mins
It is the branch of economics that deals with the structure, performance, behavior, and decision making of the whole, or aggregate, economy.
Macroeconomics
Microeconomics
This studies economy-wide phenomena.
Macroeconomics
Microeconomics
Income flow = Expenditure flow
True
False
The following are factors of production except
Land
Labor
Wage
Entrepreneurship
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 happens to the size of income flow when leakages are larger than injections?
Nothing happens.
The size of circular flow becomes smaller.
The size of circular flow becomes larger.
What happens to the size of income flow when injections are larger than leakages?
Nothing happens.
The size of circular flow becomes smaller.
The size of circular flow becomes larger.
