IB Economics SL 1.1.5 Circular flow of income model
IB Economics SL 1.1.5 Circular flow of income model
Students practise annotating circular flow diagrams to show how injections, leakages, or policy interventions alter national income flows in open or closed economies.
How this is tested
- draw the open circular flow and show exports as injections raising national income
- explain how more microfinance in Cambodia boosts household spending and firm revenue
- define leakages or list four factor payments with precision, as tested in Paper3 (2018)