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8 Cards in this Set
- Front
- Back
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Circular flow of income |
A model of the economy which shows the flow of goods, services and factors and their payments around the economy. |
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Closed economy |
An economy where there is no foreign trade. |
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Income |
Rent, interest, wages and profits earned from wealth owned by economic actors. |
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Injections |
In the circular flow of income, spending which is not generated by households, including investment, government spending and exports. |
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National income |
The value of the output, expenditure or income of an economy over a period of time. |
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Open economy |
An economy where there is trade with other countries. |
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Wealth |
A stock of assets which can be used to generate a flow of production or income. For example, physical wealth such as factories and machines is used to make goods and services. |
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Withdrawals or leakages |
In the circular flow of income, spending by households which does not flow back into domestic firms, including savings, taxes and imports. |
