4- National income definitions Flashcards
1
Q
Circular flow
A
A model of the economy which shows the flow of goods and services, the factors of production and money around the economy.
2
Q
National expenditure
A
The value of spending by households on goods and services.
3
Q
National income
A
The value of income paid by firms to households in return for the factors of production.
4
Q
National output
A
The value of the flow of goods and services from firms to households.
5
Q
Income
A
A flow of assets.
6
Q
Wealth
A
A stock of assets.
