In the simple circular flow model, Multiple Choice there are real flows of goods, services, and resources, but not money flows. businesses are sellers of final products. households are sellers of final products. households are buyers of resources.
Q: In the circular flow model, firms own the economic resources and households buy the manufactured…
A: Firms and household are the two players in the circular flow model.
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Q: The following diagram presents a circular-flow model of a simple economy. The outer set of arrows…
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Q: The following diagram presents a circular-flow model of a simple economy. The outer set of arrows…
A: We will answer the first question since the exact one was not specified. Please submit a new…
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Q: The following diagram presents a circular-flow model of a simple economy. The outer set of arrows…
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Q: Draw a circular flow diagram. Determine the parts of the model that correspond to the flow of goods…
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Q: The following diagram presents a circular-flow model of a simple economy. The outer set of arrows…
A: circular flow of income is the economic model which represent the flow of income between household…
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Q: FIGURE 2-3 E F Consumption Goods Refer to Figure 2-3. Which of the following movements will result…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
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A: Answer : (A) The household purchase goods from firms
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Q: In the simple circular-flow diagram, a. households own the factors of production. b. households…
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Q: The following diagram presents a circular-flow model of a simple economy. The outer set of arrows…
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- Give an economic relationship in which individual effect of independent variables are difficult to separate in the presence of multicollinearity.Variables 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 / nominalUsing the basic circular flow model, explain whythe value of businesses’ output of goods andservices equals the income of households.
- Draw a circular-flow diagram. Identify the parts of the model that correspond to the flow of goods and services and the flow of dollars for each of the following activities. Sam pays a storekeeper $1 for a quart of milk. Sally earns $4.50 per hour working at a fast food restaurant. Serena spends $7 to see a movie. Stuart earns $10,000 from his 10 percent ownership of Acme Industrial.In 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.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. 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.
- Illustrate using the circular flow model how resources are utilized by household and the business sector. Draw a circular-flow diagram. Identify the parts of the model that correspond to the flow of goods and services and the flow of dollars for each of the following activities. Paul purchases a pair of shoes for $30 Shannon receives a salary of $1,500 per week at the supermarket which she works Honda Limited receives $20,000 for the sale of a sports utility vehicle Mark earns $2,000 from his 15 percent ownership of Apple stock Classify each of the following statements as positive or normative. Explain. Bahamas faces a trade-off between inflation and unemployment The ECCB should reduce the interest rates St. Lucia ought to provide a pension for all citizens. 4.Higher tax rates discourage savings and working Show in a diagram the effect on the demand curve, the supply curve, the equilibrium price, and the equilibrium quantity of each of the following scenarios. The market for gasoline Scenario 1: Electric…Draw a circular-flow diagram. Identify the parts of the model that correspond to the flow of goods and services and the flow of dollars for each of the following activities. Stuart earns $4.50 per hour working at a fast-food restaurant.
- i. Draw a circular-flow diagram and Identify the parts of the model that correspondto the flow of goods and services and the flow of dollars when Paul purchases a pair of shoes for $30. ii. Draw a circular-flow diagram and dentify the parts of the model that correspondto the flow of goods and services and the flow of dollars whenShannon receives a salary of $1,500 per week at the supermarket whichshe works. iii. Draw a circular-flow diagram and dentify the parts of the model that correspondto the flow of goods and services and the flow of dollars when Honda Limited receives $20,000 for the sale of a sports utility vehicle. iv. Draw a circular-flow diagram and dentify the parts of the model that correspondto the flow of goods and services and the flow of dollars whenMark earns $2,000 from his 15 percent ownership of Apple stock. B.Classify The following statements as positive or normative. Explain. I.Higher tax rates discourage savings and working.Discuss the circular flow diagram based on your own understanding and give an example where you participated in each market as member of a household.MULTIPLE CHOICE Consider the static model of the household studied in class. When consumption and leisure are both normal goods, a decrease in a lump sum tax leads the household to (1) increase consumption and increase labour supply. (2) increase consumption and reduce labour supply. (3) reduce consumption and increase labour supply. (4) reduce consumption and reduce labour supply.