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 market
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In the circular flow model, households are buyers and firms are sellers in the
a. government market
b. monetary flows
c. goods and
d. labor market
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- Human capital is defined as: a. The skills and education that make workers more productive b. The knowledge of the best and most efficient ways to produce goods and services c. The total number of workers available in the economy d. The total amount of financial investment in an economyb) Economy can be represented by economic models. One of the models we use to understand economy is a “Circular Flow Diagram”. Sketch a Circular flow model and explain the flow of money and flow of goods and services and factors of production caused by the following activities. i. Kaleem pays a shopkeeper Rs.150 for a liter of milk. ii. Mustaqeem while working at a fast-food restaurant earns Rs.500 per hour. iii. Sana spends Rs.500 on a haircut. iv. Mustafa receives Rs.200,000 from his 10 percent ownership of Salman Chemicals Ltd.The economy can be represented by economic models. One of the models we use to understand the economy is a “Circular Flow Diagram”. Sketch a Circular flow model and explain the flow of money and flow of goods and services and factors of production caused by the following activities. Sana spends Rs.500 on a haircut. Mustafa receives Rs.200,000 from his 10 per cent ownership of Salman Chemicals Ltd.
- Economy can be represented by economic models. One of the models we use to understand economy is a “Circular Flow Diagram”. Sketch a Circular flow model and explain the flow of money and flow of goods and services and factors of production caused by the following activities. i. Kaleem pays a shopkeeper Rs.150 for a liter of milk. ii. Mustaqeem while working at a fast-food restaurant earns Rs.500 per hour. iii. Sana spends Rs.500 on a haircut. iv. Mustafa receives Rs.200,000 from his 10 percent ownership of Salman Chemicals Ltd.In terms of the circular flow diagram, households make expenditures in the _____ market and receive income through the _____ market. product; financial resource; product product; resource capital; productEconomy can be represented by economic models. One of the models we use to understand economy is a “Circular Flow Diagram”. Sketch a Circular flow model and explain the flow of money and flow of goods and services and factors of production caused by the following activities. Kaleem pays a shopkeeper Rs.150 for a liter of milk. Mustaqeem while working at a fast-food restaurant earns Rs.500 per hour.
- Part A. In the circular flow diagram what do households do in the factor market, buy or sell? Part B. In the Factor Market do firms buy or sell?Which of the following is considered a factor of production? A) Money B) Labor C) Stocks and bonds D) Consumer goods Don't use chatgpt otherwise give 20 downvotesYou have been employed as the chief economist for the economy UWI Land. The head statistician has provided you with the following information: Compensation of Employees 900 Consumption of goods 850 Corporate profits 400 Rent Income 125 Factor income paid to the world 325 Consumption of services 475 Factor Income received from the world 170 Residential investments 350 Indirect taxes 775 Non-residential investments 525 Subsidies 125 Government Expenditure 925 Depreciation 120 Imports 700 Net interest 75 Exports 300 Proprietors income 300 Calculate UWI Land’s GDP using (1) the Income and (2) the Expenditure Approach Question 2 (Activity 7.1) Suppose production and prices of food and clothing (the only two goods produced in this economy) in 2006 and 2007 are as follows: (base year = 2006) Year Quantity of Food Price of Food Quantity of Clothing Price of Clothing 2006 20 $15 15 $5 2007 60 $18 30 $6 Calculate: (i) nominal and real GDP in 2006 and…
- Economy can be represented by economic models. One of the models we use to understand economy is a “Circular Flow Diagram”. Sketch a Circular flow model and explain the flow of money and flow of goods and services and factors of production caused by the following activities. Kaleem pays a shopkeeper Rs.150 for a liter of milk. Mustaqeem while working at a fast-food restaurant earns Rs.500 per hour. Sana spends Rs.500 on a haircut. Mustafa receives Rs.200,000 from his 10 percent ownership of Salman Chemicals Ltd.The simple circular flow model shows that: households are on the buying side of both product and resource markets. businesses are on the selling side of both product and resource markets. households are on the selling side of the resource market and on the buying side of the product market. businesses are on the buying side of the product market and on the selling side of the resource market.Critically analyze the importance of the Circular Flow model and use it to explain why the Gross Domestic Product (GDP) equals Aggregate Expenditure (AE) and Aggregate Income (AI).