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Basic Concepts & the Circular Flow · Question 61 of 72

Question 61

MediumOriginal question

Which of these is a leakage from the circular flow of income?

Options for question 61

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. Income that households save is not spent on firms' goods, so it leaves the flow.

  2. Investment, government spending and exports add spending to the flow: injections.

Concept
Leakages
Typical time
70 s
Your time
—
The rule this testsThe circular flow of income
Practise this chapter →

Ten questions from Basic Concepts & the Circular Flow, at your own pace.

Practise this chapter →

Ten questions from Basic Concepts & the Circular Flow, at your own pace.