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2.4.2 Injections and withdrawals

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Question 2

The table below shows selected macroeconomic data for an open economy with a government sector:

Macroeconomic variableValue (£ billion)
Savings (SSS)45
Business Investment (III)35
Government Expenditure (GGG)50
Taxation (TTT)40
Export Revenue (XXX)30
Import Expenditure (MMM)38

Which of the following correctly identifies the net relationship between injections and withdrawals, and its primary effect on the circular flow of income?

A

There is a net withdrawal of £8 billion, exerting downward pressure on national income.

B

There is a net injection of £8 billion, exerting upward pressure on national income.

C

There is a net withdrawal of £18 billion, exerting downward pressure on national income.

D

There is a net injection of £12 billion, exerting upward pressure on national income.

Markscheme

2.4.2 Injections and withdrawals Questions

  1. A Level
  2. /Economics
  3. /2.4.2 Injections and withdrawals

16 exam-style questions on Edexcel A A Level Economics 2.4.2 Injections and withdrawals. Each one has a worked solution and a mark scheme showing where the marks go.

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