Circular flow of money Study guides, Class notes & Summaries

2 Section A Answer all questions in this section. Only one answer per question is allowed. For each question completely fill in the circle alongside the appropriate answer. CORRECT METHOD WRONG METHODS If you want to change your answer you must cross out your original answer as shown. If you wish to return to an answer previously crossed out, ring the answer you now wish to select as shown. 0 1 Which one of the following is an injection into the circular flow of income? [1 mark] A C...

Macroeconomics The study of the economy as a whole, including inflation, growth and unemployment. Aggregate demand The total of all demands or expenditures in the economy at any given price. Aggregate demand curve Shows the relationship between the price level and equilibrium national income. As the price level rises the equilibrium level of national income falls. Animal spirits Business confidence: the mood of managers and owners of firms about the future of their indus...

AQA AS ECONOMICS 7135/2 Paper 2 The National Economy in a Global Context Version: 1.0 Final *jun* IB/M/Jun23/E9 7135/2 For Examiner’s Use Section Mark A B TOTAL Monday 22 May 2023 Morning Time allowed: 1 hour 30 minutes Materials For this paper you must have: • the Insert • a calculator. Instructions • Use black ink or black ball-point pen. Pencil should only be used for drawing. • Fill in the boxes at the top of this page. • Answer all questions in Section A. ...

UNLV Econ 103 Exam III Questions with Correct Answers 100% Solved Classical economics was discredited by The Great Depression John Maynard Keynes outlined his theory in his book The General Theory of Employment, Money, and Interest (1936) Keynes argued that ________ was the most important part of the circular flow Investment According to Keynes, recessions are typically caused by insufficient investment Autonomous consumption Consumption that is independent of current income. induced c...

Test Bank for Essentials of Economics, 5th Edition 5e by Stanley Brue, Campbell McConnell and Sean Flynn. Full Chapters test bank included PART ONE: Introduction Chapter 1: Limits, Alternatives, and Choices Chapter One Appendix: Graphs and Their Meaning Chapter 2: The Market System and the Circular Flow PART TWO: Price, Quantity, and Efficiency Chapter 3: Demand, Supply, and Market Equilibrium Chapter Three Appendix: Additional Examples of Supply and Demand Chapter 4: Elasticit...

Economic Indicators - A statistic about an economic activity. Circular Flow Model - An economic model that shows the flow of money and goods through the economy. The most common form of this model shows the circular flow of income between the household sector and the business sector. Economics - The study of how humans make decisions in the face of scarcity. Factors of Production - Describes theninputs used in the production of goods or services to make an economic profit. Macroecono...

1. define Globalisation the process through which nation- al economies, societies and cultures are becoming increasingly intercon- nected through global networks of trade, communication, transportation and immigration 2. where are levels of globalisation the highest 3. where are levels of globalisation the lowest 4. 3 Key Characteristics of Globalisa- tion between core countries, as a result of them having sorted out major do- mestic problems, giving them spare capacity to look to solve ...

1. Why do countries trade? What causes there to be benefits to trade? correct answers Trade makes everyone better off because consumptions is much higher when trade is involved. Causes- Absolute Advantage: producing a good using fewer inputs than another producer. If Each country has absolute advantage in 1 good + specializes in that good then both countries gain from trade, Comparative advantage: the ability to produce a good at a lower opportunity cost than another producer. When each country ...

ECN 211 ASU Final Exam Marburger Questions And Answers The Circular Flow Diagram - ANS Green arrows represent the flow of money and red represents to flow of goods/services Production possibilities Frontier/ Curve PPF: PPC - ANS The curve shows what is possible within an economy D- impossible A&B - feasible efficient C - feasible & inefficient PPF shifts out when... - ANS the economy can produce more of everything Opportunity Cost - ANS the cost of what you give up to g...

Ten Principes - correct answer Principle 1: People face tradeoffs Principle 2: The cost of something what you give up getting it Principle 3: Rational people think at the margin Principle 4: People respond to incentives Principle 5: Trade can make everyone better off Principle 6: Markets are usually a good way to organize economic Principle 7: Government can sometimes improve market outcomes Principle 8: A country's standard of living depends on its ability to produce goods and service...