Which THREE of the Following Constitute Injections into the Circular

question 1

Multiple Choice

Which THREE of the following constitute injections into the circular flow of income? (Choose three.)

• A) Savings
• B) Exports
• C) Government expenditure
• D) Investment
• E) Imports
• F) Taxation

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Definitions:

Surplus

The amount by which the quantity supplied of a product exceeds the quantity demanded at a specific (above-equilibrium) price.

Equilibrium Level

The state of balance where market forces such as supply and demand are equal, often used in the context of prices and quantities in markets.

Equilibrium

Equilibrium is the state in an economy or market where supply equals demand, resulting in stable prices.

Surplus

The situation in which the quantity of a product supplied exceeds the quantity demanded at a given price; excess supply.