Circular flow.pptx by zothaini buthelezi

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1. EMS 4 EDAC213 Activity Study the graph in slide 2 and write your understanding of the inflow and outflow.

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3. The Circular Flow of Income Simple economy with only firms and households Firms are producing output – goods and services Households are employed by firms to produce this output and earn income ( two sector economy)

4. INJECTIONS Injections into the economy represent spending on FINAL goods and services Planned injections Injections include the following Investments Government Spending Exports In addition to consumption spending (total money spent on final goods and services by individuals and households for personal use and enjoyment) we have injections.

5. Withdrawals Represent income that has been earned by households but is not spent on final goods and services in this economy They include the following: Savings, Taxation, Imports They are leakages from consumption spending

6. QUESTION Questions on Reading: Is it fair to SA tax payers to not inform them? Is it unfair for us as a developing economy? Is it realistic? List as many taxes as you can in SA. Property Tax, VAT (Consumption Tax) , UIF, Income Tax, Corporate Taxes, Excise Taxes.