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2.4 National income

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Question 2

The table below shows macroeconomic data for a hypothetical open economy:

Macroeconomic variableValue (£ billion)
Savings (SSS)60
Investment (III)45
Government Spending (GGG)85
Taxation (TTT)75
Imports (MMM)40
Exports (XXX)55

Based on this data, which of the following statements is correct?

A

The circular flow of income is in equilibrium because total injections equal total withdrawals.

B

There is a net injection of £10 billion into the circular flow of income.

C

There is a net withdrawal of £10 billion from the circular flow of income.

D

There is a net withdrawal of £20 billion from the circular flow of income.

Markscheme

2.4 National income Questions

  1. A Level
  2. /Economics
  3. /2.4 National income

75 exam-style questions on Edexcel A A Level Economics 2.4 National income, covering 2.4.1 National income, 2.4.2 Injections and withdrawals, 2.4.3 Equilibrium levels of real national output, and 2.4.4 The multiplier. Each one has a worked solution and a mark scheme showing where the marks go.

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