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UI Post-UTME Economics 2021 (Model questions) Question 16

Question 16

National Income

In the circular flow of income chat of an open economy, items that enter and exit the economy are respectively.......

  1. A.Receipts from exports and payments for imports
  2. B.Payments for inputs and payments for output
  3. C.Taxes paid to government and investment by firms
  4. D.payment for goods and services and provision of social amenities..
Show the answer and explanation

Answer: A (Receipts from exports and payments for imports)

Explanation

Export earnings flow into the economy (an injection) and import payments flow out (a leakage).