In a circular flow model, the source of the factors of production used to create goods and services is... a) Product market b) Households c) Firms d) Foreign exchange market
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In a circular flow model, the source of the factors of production used to create goods and services is...
a) Product market
b) Households
c) Firms
d) Foreign exchange market
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- Which of the following statements about a simple circular flow model is false? Producers are buyers in the factor market and sellers in the product market. Households are buyers in the product market. Households are neither buyers nor sellers in the product market. Producers are buyers in the factor market.Which of the following factors in a circular flow model is always represented by arrows on the outside of the model? resources money goods servicesVariables expressed in terms of ...... are called ...... variables a) physical units / endogenous b) exogenous units / real c) money / nominal d) phsical units / real e) endogenous units / nominal
- In the circular flow model, households are buyers and firms are sellers in the a. government market b. monetary flows c. goods and services market d. labor marketDraw a circular flow diagram. Determine the parts of the model that correspond to theflow of goods and services and the flow of dollars for each of the following activities.i. Tupperware Company earns RM10 revenue on average from each water bottlesold.ii. Carmen earns RM6 wages per hour working at Seoul Garden restaurant.iii. Ms. Kek spends RM40 to get a haircut.iv. Ms. Goh earns RM3, 000 rental income from her 10 percent ownership of landproperty.Give an economic relationship in which individual effect of independent variables are difficult to separate in the presence of multicollinearity.
- Which of the following statements about the circular flow model is false? Business firms buy goods and services from the household sector. Households supply resources to the business sector Businesses supply goods and services to the household sector. Consumers earn income by selling resources they own to businesses.Draw a circular flow diagram. Determine the parts of the model that correspond to theflow of goods and services and the flow of dollars for each of the following activities.i. Ms. Goh earns RM3, 000 rental income from her 10 percent ownership of landproperty.what is the purpose of the circular flow model?
- Consider the simple model to estimate the effect of technology investment on labor productivity of M enterprises: product = Bo + B1 ln K + B2 ln L + B3 tech + B3 size + u In which, product is the labor productivity; tech is the total technology investment value/total investment value; ln K is the natural logarithm of total capital; ln L is the logarithm of total labor; tech is total techonology investment value/total investment value; size is the size of the enterprise, the dummy variable includes four categories: 1-super small; 2-small; 3-medium; 4-large (size_1 is the base category).a. What is the endogenous problem in the regression model? b. In the model, can the variable tech be correlated with u? Explain?c. What causes endogenous problems in this case?d. Could you give some solutions to the endogenous variable problem?The concept of the circular flow of economic activity illustrates the point that all economic activities are interdependent. a. True b. FalseIn the simple circular-flow diagram, a. households own the factors of production. b. households buy all the goods and services that firms produce. c. land, labor, and capital flow from households to firms. d. All of the above are correct.
