6 Questions
Match the following with their respective flows in the circular flow of income:
Factors of production = Real flow Goods and services = Real flow Factor remuneration = Money flow Consumption expenditure = Money flow
Match the following with their respective outflows from the circular flow of income:
Savings = Leakages Taxation = Leakages Payment for Imports = Leakages Investment = Injections
Match the following with their respective inflows into the circular flow of income:
Government expenditure = Injections Payments for exports = Injections Factors of production from foreign countries = Real flow Goods and services to foreign countries = Real flow
Match the following with their corresponding equation components for equilibrium in the economy:
S + T + M = Leakages G + I + X = Injections Real flow from South Africa to foreign countries (exports) = Real flow Money flow from producers to households (factor remuneration) = Money flow
Match the following with their corresponding representation in the circular flow of income:
Foreign countries to South Africa (imports) = Real flow Expenditure of households and income of producers (consumption expenditure) = Money flow Equilibrium condition (L = J) = Equations Flow of factor remuneration representing expenditure of producers and income of households = Money flow
Match the following with their respective components in the circular flow of income:
Factor markets to producers = Real flow Producers via goods markets to households and other users of goods and services = Real flow Wages, rent, interest, and profit (factor remuneration) = Money flow Outflow of money from the economy (leakages) = Leakages
Test your knowledge of the real and money flow in economics, including the movement of factors of production, goods and services, as well as factor remuneration and expenditure. Explore the connections between households, producers, goods markets, and foreign countries.
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