A-LevelEconomicsNational Income and Economic GrowthFeb/Mar 2023Paper 1 Q181 Mark
Which statement about the circular flow of income is correct?
AExports and imports do not affect the equilibrium level of national income because they always cancel each other out.
BThe greater the level of saving, the greater the level of injections in the form of investment must be.
CWhen consumers use past savings to increase their spending, there will be a rise in national income.
DWhen a government increases withdrawals by increasing the rate of income tax, there must be an equivalent increase in injections to compensate.
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of national income and economic growth within the Economicssyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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