Which of the Following Is an Example of a Leakage

question 63

Multiple Choice

Which of the following is an example of a leakage from the circular flow of income and expenditure?

• A) investment
• B) imports
• C) government purchases
• D) exports
• E) transfer payments

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Definitions:

Cost Data

Information related to the expenses involved in producing a good or providing a service, including materials, labor, and overhead.

Market Price

The prevailing price at which a good or service is bought and sold in a competitive marketplace.

Market Price

The current value at which a good or service can be bought or sold in a given market.

Short-Run Equilibrium

A state in which supply equals demand within a particular market, specifically under the assumption that some conditions (like input prices) are fixed in the short term.