1st quiz coverage Flashcards
What leads to scarcity?
Unlimited wants but limited resources
What are the four sectors of the economy?
Household sector
Business sector
Government sector
Foreign sector
What does CELL stand for?
Capital
Entrepreneurial skill
Land
Labor
How do the household sector and the business firms relate to CELL?
The household sector is the seller of CELL while the business firms are the buyers of CELL
What are the different money income?
Revenue
Profit
Wages and Salary
Rent
What are the different leakages in the circular flow?
Import
Tax
Savings
In a household, money income > payments = ?
Savings
In a household, money income < payments = ?
Disavings
In a business firm, revenue > cost = ?
Profit
In a business firm, revenue < cost = ?
Loss
In the government, taxes > government spending = ?
Fiscal surplus
In the government, taxes < government spending = ?
Fiscal deficit
In the foreign sector, export > import = ?
Trade Surplus
In the foreign sector, export < import = ?
Trade Deficit
Draw the circular flow
