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What is value added?
The difference between the price a firm pays for the goods and services it buys from other firms and the price it sells its product for.
What are the methods of measuring GDP?
output method, income method, expenditure method.
Give economic reason for inequality of income or wealth
poor infrastructure, poor vocational training, lack of employment opportunities, low rate of savings
What is the Gini coefficient?
It is a numerical measure of the extent of income inequality in an economy.
Impact of a rise in taxation on equilibrium income in a four-sector economy
Equilibrium income in a four-sector economy
A rise in investment in a two-sector economy
Equilibrium income in a two-sector economy
List all leakages
Import, taxation, saving
List all injections.
investment, government spending, exports
A simplified circular flow model
Imports sign (1 char)
M
Taxation sign (1 char)
T
Saving sign (1 char)
S
Exports sign (1 char)
X
Government spending sign (1 char)
G
Investment sign (1 char)
I
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