Sample paper Q. 10
i. With the aid of the above infographic, briefly explain your understanding of the circular flow of income, identifying the different sectors of the economy and their interconnections.
Sample paper c: Q10
c. The household savings rate in Ireland increased to 35.5% in second quarter of 2020 from 17.2% in first quarter of 2020.
i. Analyse the information given on savings rates in Ireland in the bar chart and discuss two economic effects that the increase in the rates of savings can have on the Irish economy
ii. Explain two possible reasons for this trend in savings
iii. Discuss the impact that this change would have on Ireland’s circular flow of income diagram
Sample paper D: Q6
i. Draw a diagram representing circular flow of income for a small closed economy like Ireland with a government sector in the box below. label all sectors and lines with correct directional arrows.