What is the primary focus of a closed economy?
Understanding the Circular Flow of Income in Economics

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Business
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11th Grade - University
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Hard
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5 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Interactions between producers and consumers
Financial market investments
International trade and exports
Government spending and taxation
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In an open economy, what are 'injections'?
Consumer savings
Government taxes
Money entering the economy
Money leaving the economy
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is NOT a category of factors affecting the circular flow of income?
Trading components
Government influence
Financial markets
Natural disasters
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What happens when leakages exceed injections in an economy?
Economic growth increases
Unemployment falls
Economic growth decreases
Inflation rises
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does the multiplier effect refer to in economic terms?
A reduction in government taxes
An increase in income greater than the initial expenditure
A rise in import tariffs
A decrease in consumer spending
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