When Consumption Is Less Than Output What Is This Called

question 30

Multiple Choice

When consumption is less than output what is this called?

• A)Savings
• B)Deficit
• C)Shortage
• D)Waste

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Definitions:

Raw Materials

The basic substances or components that are processed or refined to create goods and products.

Leakages

In the context of economics, refers to any portion of income that is not used for domestic spending, such as savings, taxes, or imports.

Injections

In the context of an economy, Injections refer to the introduction of income into the circular flow of money, such as investments, government spending, and exports.

Circular Flow Model

An economic model illustrating the continuous flow of money, resources, and goods among households and businesses in an economy.