circular flow of income

Question 1

what are the four factors of production

Answer 1

Capital
Enterprise
Land
Labour

Question 2

what is the benefit of Capital

Answer 2

interest

Question 3

what is the benefit of Enterprise

Answer 3

profit

Question 4

what is the benefit of Land

Answer 4

rent

Question 5

what is the benefit of Labour

Answer 5

wages

Question 6

what is the definition of the circular flow of income

Answer 6

the movement of spending and income throughout the economy

Question 7

what are the two fundamental economic models

Answer 7

households and firms

Question 8

What are the three injections

Answer 8

investment (I)
government spending (G)
export (X)

Question 9

what are the three leakages

Answer 9

savings (S)
taxation (T)
imports (M)

Question 10

what increases economic growth

Answer 10

injections being larger than leakages

Question 11

what decreases economic growth

Answer 11

injections being smaller than leakages

Question 12

what is macro economic equilibrium

Answer 12

when injections are equal to leakages

Question 13

what is an investment

Answer 13

investment is when firms spend on capital goods

Question 14

how are factor incomes received

Answer 14

by providing factors of production

Question 15

what is the first GDP method

Answer 15

1) output method to do with goods and services

Question 16

what is the second GDP method

Answer 16

2) income method to do with factor incomes

Question 17

what is the third GDP method

Answer 17

3) expenditure method to do with consumer expenditure