The circular flow model (every paper, Question Two)

Five sectors, connected by named flows. A growth question always asks WHICH flow increases, and why.

Flow	Direction	Sector connection
Income	Producers → Households	Wages, rent, profit paid for resources
Consumption	Households → Producers	Spending on goods and services
Savings	Households → Financial	A leakage — money not spent
Investment	Financial → Producers	An injection — savings lent back out as business investment
Income tax / indirect taxes	Households/Producers → Government	Leakages
Government spending / subsidies	Government → Households/Producers	An injection
Export receipts	Overseas → Producers	An injection — foreign money paid for NZ goods
Import payments	Producers/Households → Overseas	A leakage — money paid for foreign goods

A growth question wants you to name the SPECIFIC flow(s) that increase from the scenario, and explain why — not just "the economy grows".

Injections vs leakages, in one line each

INJECTIONS (grow the flow): investment, government spending, export receipts.
LEAKAGES (shrink the flow): savings, taxes, import payments.

An overseas visitor is worth more to growth than a domestic one

When a tourist scenario compares an overseas visitor to a domestic one, the overseas visitor's spending is an EXPORT RECEIPT — genuinely new money entering the NZ economy from outside. A domestic tourist's spending is just a reallocation of money already circulating within NZ (it does not create new injections). This distinction is asked almost every year a tourism scenario appears.

Which flows a growth scenario typically increases

A tourism/export boost: export receipts (injection) rise directly.
New jobs from a project: income and consumption both rise.
A large capital project: investment (injection) rises.

Practice for this standard covers the whole topic — flashcards and quiz.