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Chapter 18 Economic factors
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The level of output in all sectors of the economy - primary, secondary and tertiary
Economic activity
The (continuous) flow of income from businesses to households as payment for work and from households to businesses as payment for products
Circular flow of income
The collective behaviour of a number of different groups such as businesses, people as employees and consumers, and the government.
The economy
Income coming into the UK economy that does not come fro UK households; this comprises investment, government spending and exports.
Injections
The purchase of capital equipment and/or buildings by businesses.
Investment
The study and analysis of the behaviour of the whole economy
Macroeconomics
The sale of goods to other countries by UK businesses.
Exports
Purchase of goods from abroad
Imports
Income that ‘leaks away’ from the economy and so does not get passed back to UK firms from households’ this comprises taxes, savings and imports
Leakages
The total value of all of the economy’s output (measured quarterly or yearly)
Gross Domestic Product (GDP)


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