Circular flow of income Flashcards
1
Q
What flows from households to firms?
A
Expenditure on goods and services and land, labour and capital
2
Q
What flows from firms to households?
A
Rent, wages, interest and profits and goods and services
3
Q
What are the three injections?
A
Gov spending, exports and investment
4
Q
What rae three withdrawals?
A
Imports, tax and savings
5
Q
What is the differene between wealth and income?
A
Wealth is a stock of assets which produce a flow of income over a period of time.
