National Income

9 flashcards · Economics · by Addaneye

1. Difference between income and wealth

   Income is a flow income while wealth is a stock concept

2. What are the three types of withdrawals/leakages?

   Savings Imports Taxes

3. What are the three types of injections?

   Government spending Investments Exports

4. Draw the circular flow of income diagram thing

5. What is the circular flow equation

   National income = national expenditure = national output

6. Why does national income = national expenditure = national output?

   Expenditure in the economy has to come from the income people receive and the expenditure is spent on output produced by firms

7. What is real GDP?

   Total value of all goods and services produced within an economy in a year, adjusted for inflation

8. Income definition

   The flow of money received by a person or economy each year

9. Wealth definition

   The sum of a person or an economy's assets