Question 1
What role do firms play in the circular flow of income?
Question 2
What is the effect of an increase in exports in the circular flow of income?
Question 3
What is an example of an injection into the circular flow?
Question 4
What impact do leakages have on the economy?
Question 5
Which sector is responsible for spending on goods and services in the expanded circular flow model?
Question 6
Which of the following is considered a leakage in the circular flow of income?
Question 7
What are the two primary economic agents in the basic circular flow of income model?
Question 8
What are the three types of injections in the circular flow of income?
Question 9
What is the role of government in the expanded circular flow model?
Question 10
What is essential for long-term economic growth in the circular flow of income?
Question 11
What happens when injections (G + I + X) are greater than leakages (S + T + M)?
Question 12
What determines short-term economic growth according to the circular flow model?
Question 13
How do savings function in the circular flow of income?
Question 14
Which component in the expanded model accounts for spending on imports?
Question 15
How do households contribute to the economy in the circular flow of income model?