Which of the Following Represents a Leakage from the Circular

question 62

Multiple Choice

Which of the following represents a leakage from the circular flow of income by the government?

• A) Taxes.
• B) Investments.
• C) Exports.
• D) Government spending.

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Definitions:

Cooperative

Working or acting together willingly for a common purpose or benefit.

Onlooker

An individual who observes events or other people but does not participate directly in the activities.

Constructive

Pertaining to constructs or building up, often used to describe positive efforts or contributions towards development or understanding.

Formal

Formal refers to activities, events, or situations that are structured, official, or follow established norms and procedures rather than being casual or relaxed.