Economic Awareness - Sectors of Indian Economy
In the four-sector circular flow of income model, which of the following is considered an injection into the economy?
In the four-sector circular flow of income model, which of the following is considered an injection into the economy?
easy Q13 of 15
Step-by-Step Solution
Step 1: Identify injections and leakages
In the circular flow, injections add money to the economy, while leakages remove money.Step 2: Classify the options
Exports bring money into the economy from abroad, so they are injections. Savings, taxes, and imports are leakages.Final Answer:
Exports → Option DQuick Check:
Injection in four-sector model = Exports ✅
Quick Trick: Injections = Investment, Government spending, Exports.
Common Mistakes:
MISTAKES- Confusing imports as injections instead of leakages.
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