In the circular flow of income for an open economy with a government sector, economic activity is divided into the inner flow, injections, and withdrawals (leakages).
Which of the following options contains only withdrawals (leakages) from this circular flow?
Households buying groceries from domestic supermarkets; the government spending funds to construct a new state school; workers contributing a portion of their wages to private pension funds
Domestic firms purchasing newly manufactured machinery from local suppliers; households paying value-added tax (VAT) on domestic purchases; foreign residents purchasing domestically produced software licenses
Domestic households paying income tax to the government; residents booking and spending money on holidays abroad; businesses retaining undistributed profits in commercial bank accounts
The government distributing state pension payments to retired citizens; domestic manufacturers exporting automotive parts to overseas carmakers; domestic firms purchasing raw materials from international suppliers
14 exam-style questions on OCR A Level Economics Circular flow of income. Each one has a worked solution and a mark scheme showing where the marks go.