The Characteristics Of National Income Flashcards
Definition Of National Income
The value of output, income and expenditureof an economy over a period of time.
Definition Of Circular Flow Of Income
A model of the economy which shows the flow of goods, services and factors and their payments around the economy.
Definition Of Closed Economy
An economy where there is no foreign trade.
Definition Of Income
Flow of money going into factors of production such as Rent, interest and wages
Definition Of Injections
In the circular flow of income, money that enters the economy including investmenst, government spending and exports.
Definition Of Open Economy
An economy where there is trade with other countries.
Definition Of Wealth
A stock of assets which can be used to generate a flow of production or income. (e.g. factories and machines).
Definition Of Withdrawals Or Leakages
In the circular flow of income, spending by households which does not flow back to domestic firms. (e.g. savings, taxes and imports).
