2.4.1 National income Flashcards
1
Q
Circular flow of income
A
An economic model that shows flows of goods and services and factors of production between firms and households. The circular floor shows how national income or GDP is calculated.
2
Q
Income
A
Represents a flow of earnings from using factors of production to generate an output of goods and services
3
Q
Wealth
A
the total value of all assets owned by a party minus what they owe (liabilities)
