Question

Match each economic activity with the correct economic term. receiving $5 for washing your father’s car leakage in the US economy paying part of your income to the government injection in the US economy a person in China purchasing an American mobile phone taxation a person in the United States purchasing a car made in Germany incentive

Answer 1

Economic activity and its correct economic term.

receiving $5 for washing your father’s car - incentive

paying part of your income to the government - taxation

a person in China purchasing an American mobile phone - injection in the US economy

a person in the United States purchasing a car made in Germany - leakage in the US economy

Receiving $5 is an incentive because it is something that encourages one to do something.

Taxation is the money or percentage of your income paid to the government.

Injection is allowing entry while leakage is allowing flow or escape.