CHAPTER 28 NATIONAL INCOME Flashcards Preview

EDEXCEL THEME 2 MACRO ECONOMICS > CHAPTER 28 NATIONAL INCOME > Flashcards

Flashcards in CHAPTER 28 NATIONAL INCOME Deck (8)
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1
Q

Circular flow of income

A

A model of the economy which shows the flow of goods, services and factors and their payments around the economy.

2
Q

Closed economy

A

An economy where there is no foreign trade

3
Q

Income

A

Rent, interest, wages and profits earned from wealth owned by economic actors

4
Q

Injections

A

In the circular flow of income, spending which is not generated by households including investment, government spending and exports.

5
Q

National income

A

The value of the output, expenditure or income of an economy over a period of time.

6
Q

Open economy

A

An economy where there is trade with other countries.

7
Q

Wealth

A

A stock of assets which can be used to generate a flow of production or income. For example, physical wealth such as factories and machines is used to make goods and services.

8
Q

Withdrawals or leakages

A

In the circular flow of income, spending by households which does not flow back to domestic firms. It includes savings, taxes and imports.