Circular Flow in GDP Flashcards
1
Q
private consumption
A
household expenditures/payments for goods/services
2
Q
government expenditures
A
services and income/payments provided to both business and households
3
Q
exports
A
goods produced in the US but consumed by other countries
4
Q
investment
A
land, labor, capital, or management provided to businesses to help them grow
5
Q
firms receive services from govt
A
govt spending
6
Q
firms receive FoP from households
A
capital
7
Q
businesses buy FoP from households
A
investment
8
Q
govt expenditure
A
road construction
9
Q
households and businesses
A
defense
10
Q
households pay taxes
A
taxes are not included
11
Q
NOT fall under private consumption
A
hiring a work crew
12
Q
investment
A
labor force
13
Q
NOT under investment
A
road construction
14
Q
firms pay taxes to govt
A
taxes not included
15
Q
households buy goods and services
A
consumption
