ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is not a leakage from the circular flow of income?
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expenditure on foreign goods
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indirect taxes
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undistributed profits
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unemployment benefits
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Explanation:
Detailed explanation-1: -Leakages are referred to as the non consumption uses of the income and examples of leakage are savings, taxes and imports.
Detailed explanation-2: -Expert Answer 1. Business investment spending is not a leakage from the economy, it is injection for the economy.
Detailed explanation-3: -It means to withdraw money from the circular flow of an economy. Leakage from the circular flow of income of an economy happens when the firms and households save a part of their incomes.
Detailed explanation-4: -Answer and Explanation: The Savings and the taxes are the leakages from the circular flow diagram.
There is 1 question to complete.