Question 1
What is meant by open economy?
A.
Flow — wages, rent, interest, profit. B.
No foreign trade in the basic model. C.
Includes imports and exports. D.
Total income in the economy in a period.
Question 2
Injections include:
A.
G, I and X B.
S, T and M C.
GDP per capita D.
C only
Question 3
What is meant by injections?
A.
Flow — wages, rent, interest, profit. B.
Includes imports and exports. C.
G, I, X add to the circular flow. D.
S, T, M leak from the circular flow.
Question 4
What is meant by wealth effect?
A.
Stock — assets owned at a point in time. B.
S, T, M leak from the circular flow. C.
Higher assets may raise consumption. D.
Flow — wages, rent, interest, profit.
Question 5
In an open economy the circular flow includes:
A.
Imports and exports B.
Only savings C.
Only investment D.
No government
Question 6
What is meant by circular flow?
A.
Flow — wages, rent, interest, profit. B.
Model of income flows between households and firms. C.
S, T, M leak from the circular flow. D.
Higher assets may raise consumption.
Question 7
Withdrawals include:
A.
S, T and M B.
Exports only C.
Transfer payments D.
G, I, X
Question 8
National income measures:
A.
Assets at a point in time B.
Only exports C.
Total income in a period D.
Only tax
Question 9
What is meant by wealth?
A.
Stock — assets owned at a point in time. B.
S, T, M leak from the circular flow. C.
Output equals expenditure equals income. D.
Model of income flows between households and firms.
Question 10
What is meant by withdrawals?
A.
S, T, M leak from the circular flow. B.
Model of income flows between households and firms. C.
Total income in the economy in a period. D.
Stock — assets owned at a point in time.
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