Which one of the following is a leakage from circular flow of income?

Select one:
a. Money invested by firms in
purchasing capital stock.
b. None
c. Money collected by the government, through income tax and value-added tax (VAT).
d. Government welfare benefits; and spending on infrastructure.

= Money collected by the government, through income tax and value-added tax (VAT).

Question

17-01-2021
Business

contestada

Which one of the following is a leakage from circular flow of income?

Select one:
a. Money invested by firms in
purchasing capital stock.
b. None
c. Money collected by the government, through income tax and value-added tax (VAT).
d. Government welfare benefits; and spending on infrastructure.

= Money collected by the government, through income tax and value-added tax (VAT).

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RELAXING NOICE

Parrain Parrain · Answer 1 · 2022-06-20T17:03:45+02:00

A leakage from the circular flow of income in the economy is c. Money collected by the government, through income tax and value-added tax (VAT).

What are leakages in the circular flow of income?

The circular flow of income shows how households and businesses interact. Businesses pay households for working, and households buy goods from businesses.

Leakages are those things that do not go to either the businesses or the households including taxes and funds collected by the government.

Find out more on the circular flow of income at https://brainly.com/question/20532825.

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