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Questions and Answers
Which sector provides labor and resources in the circular flow model?
What is the main function of the financial market in the circular flow model?
What measures the total economic output at market prices?
What type of flows involve the movement of goods and services?
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What is Gross National Income (GNI) a measure of?
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Which market deals in resources like labor and capital?
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What is the role of the government in the circular flow model?
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What are the three categories of prices based on economic approach?
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What is the main function of the foreign sector in the circular flow model?
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What is the multiplier effect?
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What is the basic formula for the multiplier in a simple two-sector model?
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What is the purpose of the Two-Sector Model?
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What is the impact of taxes on the spending and saving behaviors in the Three and Four-Sector Models?
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What is the term for the proportion of additional income that households spend?
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What is the impact of the multiplier effect on economic output?
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What does GNI account for?
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Which model focuses on household and firm interactions?
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What affects spending adjustments in the Two-Sector Model?
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What is the main difference between the Two-Sector Model and the Three-Sector Model?
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What is the purpose of using different price categories in economics?
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What is the formula for the multiplier in a simple two-sector model?
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How do imports affect the multiplier effect in the Three-Sector Model?
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What is the relationship between the marginal propensity to consume and the multiplier?
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What is the primary focus of the circular flow model in an open economy?
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What is the main function of the foreign exchange market in the circular flow model?
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Which sector injects spending into the economy through public services and infrastructure in the circular flow model?
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What is the main difference between real flows and money flows in the circular flow model?
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Which market facilitates the trade of consumer goods and services in the circular flow model?
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What is the primary purpose of measuring national account aggregates in the circular flow model?
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What is the outcome of the interactions among various sectors and markets in the circular flow model?
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What is the primary reason for adjusting Gross National Income for income received from abroad?
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Which of the following prices is closest to the market price of a good?
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What is the impact of an increase in the marginal propensity to consume on the multiplier?
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What is the primary difference between the Two-Sector Model and the Three-Sector Model?
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What is the effect of an increase in taxes on the spending and saving behaviors in the Three-Sector Model?
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What is the primary purpose of the multiplier effect in macroeconomic analysis?
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What is the relationship between the marginal propensity to consume and the marginal propensity to save?
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What is the primary advantage of using the Two-Sector Model in macroeconomic analysis?
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What is the primary outcome of the interactions among various sectors and markets in the circular flow model?
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What is the main reason for the government's involvement in the circular flow model?
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What is the primary function of the goods market in the circular flow model?
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What is the primary difference between real flows and money flows in the circular flow model?
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What is the primary impact of exports on the circular flow model?
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What is the primary function of the financial market in the circular flow model?
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What is the primary role of households in the circular flow model?
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