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

Pairs

Correct matches

receiving $5 for washing your father’s car (incentive)

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

paying part of your income to the government (taxation)

injection in the US economy (a person in China purchasing an

American mobile phone)

$5 is an incentive because it motivates.

Tax is a proportion of income paid to the government in a progressive rate. (

When a person in the US buy outside, he reduces the flow of income (leakage). When someone buys inside he introduces an income (injection in the economy).