Circular flow of income

EasyMedium
123456789101112131415161718
Question 9
Easy

Stimulus Material

Mauritius, as a highly globalised island economy, is strongly influenced by fluctuations in international trade. Due to its size and reliance on foreign goods, it has a notable marginal propensity to import. Between 2022 and 2023, the mean annual disposable income of households in Mauritius increased from 450,000 MUR to 510,000 MUR. Over the same period, the mean annual household expenditure on imported goods and services rose from 135,000 MUR to 156,000 MUR.


Using the information provided, calculate the marginal propensity to import (MPM) for Mauritian households between 2022 and 2023.

[2]

Circular flow of income Questions

  1. A Level
  2. /Economics
  3. /Circular flow of income