Classwork Week 4

Group 3 Team Members: Dave Hickey, Maciej Woznica, Eoin O’Shaughnessy, Noreen O’Hanlon, Paul O’Brien, Thomas Harty, Jackie Brosnan.

Reporter: Dave Hickey

Wages: Income / Expenditure
Compensation received/paid out for labour.

Consumption: Expenditure / Income
Expenditure on goods and services. Income for service and good providers.

Rent: Income / Expenditure
Income received/expenditure made for the use of a capital asset.

Government Expenditure: Expenditure/Income/Output
Expenditure on public goods and services.

Manufacturing output: Output
Output as a result of a manufacturing process.

Interest Payments: Income/Expenditure
Income/ Expenditure from the provision of capital/cost of capital.

Loans: Income/Expenditure
Money received to be paid back at a future date.

Bank Deposits: Expenditure
Stock of capital (opposite of a loan)

Bonds: Expenditure
Type of loan.

Equities: Expenditure
Investment in shares of a company.

Money Balances: Income
How much money – wealth in the form of readily available purchasing power – consumers and firms actually hold.

Question 3 – Each entity described above forms part of the economic circular flow model which shows how the economy is interlinked.