11 Circular Flow of Economics Flashcards
1
Q
shows relationship between income and expenditures
A
circular flow diagrams
2
Q
transactions (exchange) among different sectors of the economy
A
circular flow diagrams
3
Q
spending by households for goods and services
A
consumption spending
4
Q
market value of everything in the market
A
GDP
5
Q
market value of all final goods and services in the economy
A
GDP
6
Q
spending by firms on capital goods
A
investment spending
7
Q
all spending of the gov’t
A
government spending
8
Q
utilities, pay roll (salaries)
A
consumption expenditure
9
Q
public infrastructure (roads, public schools, public transportation, etc)
A
public investment
10
Q
social purpose (subsidies, scholarships, financial aid, relief aid, etc)
A
gov’t transfers
