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November 4, 2022

Under the Circular Flow model are Injections and Leakages, Differentiate the two and discuss briefly each of the injections of income into the flow and the leakages of income from the flow

Creative Writing

Answer the following Essay questions: 10 Pts each 1. Under the Circular Flow model are Injections and Leakages, Differentiate the two and discuss briefly each of the injections of income into the flow and the leakages of income from the flow. 2. What is the role of firms and households in the flow of income? 3. What happens to the flow of money if households save all their income? Explain. 4. How might government actions affect the circular flow of economic activity? 5. What is the importance of Demand in Economics? For businesses? 6. Supply is created by the sellers, while demand is generated by buyers. Discuss your own view about this statement. 7. Enumerate the determinants of demand and discuss each of them. 8. What are the similarities and differences between demand and supply? Explain each in your own words. 9. What comes first demand or supply? Justify your answer. 10. Differentiate each from the others: (a) Elasticity (b) Price elasticity of demand (c) Price elasticity of supply (d) Income elasticity of demand (e) Cross Price elasticity of demand

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