Econ – Macroeconomics Study Guide Test.

Econ – Macroeconomics Study Guide Test. The government sector collects taxes , which are considered (leakages, injectors, or factors of production); - CORRECT ANSWER leakages Households provide (leakages, injectors, or factors of production) to firms, which assists in the production of goods and services. - CORRECT ANSWER factors of production The foreign sector purchases exports, which are considered (leakages, injectors, or factors of production). - CORRECT ANSWER injectors Government spending by the government sector is a (leakage or injector). - CORRECT ANSWER injector Investments made by the financial sector is a (leakage or injector). - CORRECT ANSWER injector Taxes collected by the government sector are a (leakage or injector) - CORRECT ANSWER leakage Savings by individuals outside a bank are a (leakage or injector) - CORRECT ANSWER leakage Exports purchased by a foreign sector are a (leakage or injector) - CORRECT ANSWER injector Which best describes why taxes and savings are considered leakage factors? a - they take money out of households b - they take money out of the economic system c - they take money our of the economic sectors d - they take money out of the financial sector - CORRECT ANSWER b - they take money out of the economic system The circular flow model examined interaction between which sectors of the economy? Check all that apply. a - private b - government c - businesses d - tech e - households - CORRECT ANSWER b - government, c - businesses, e - households Which best describes what occurs in the product market? a - the exchange of labor for capital b - the exchange of goods and services for factors of production c - the exchange of goods and services for money d - the exchange of money for factors of production - CORRECT ANSWER c - the exchange of goods and services for money The aggregate is a - a type of economic system b - the total number of goods demanded or supplied c - a form of revenue d - the total profit made on sales - CORRECT ANSWER b - the total number of good demanded or supplied