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Basic Concepts & the Circular Flow · Question 67 of 72

Question 67

MediumOriginal question

In an open economy, money spent by Indian households on goods made abroad is

Options for question 67

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. Spending on imports goes to foreign producers, so it leaves the domestic flow.

Concept
Imports as a leakage
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.