The correct answer is C . Income payments
Explanation:- In the circular flow model, income payments represent the fund flow from firms to households in the form of wages, profit, interest and rent through the factor markets.
Within the circular flow model which of the following is not represented as a flow of...
Figure 7-1: Circular-Flow Model: Use the following to answer questions 6-7: Wages, dividends, interest rent = $500 Wages, dividends, interest rent = $500 Factor markets Firms Households Consumer spending - $400 Taxes = $100 Goods and services markets Imports = $30 Government Government purchases of Exports goods and - $30 services = $100 Rest of world 6. (Figure 7-1: Circular-Flow Model) Use Figure 7-1: Circular-Flow Model. If the circular- flow model is in equilibrium (the sum of money flowing into...
The circular flow model shows the O A. distribution of income to the different factors of production O B. combinations of the factors of production needed to produce goods and services. O C. flow of expenditure and incomes that arise from the households', firms, and governments' decisions. OD. distribution of income and consumption goods across income levels. O E. flow of natural resources from firms to the private market to government and back to firms,
question 1 and 5 8 je Circular Flow of Economic Activity Worksheet 1. Which of the following is NOT one of the three fundamental economic participants a. households b. businesses c. banks d. government 2. The simple circular flow model shows that: a. households are on the selling side of the resource market and the buying side of the product market. b. households are on the buying side of both product and resource markets c. businesses are on the buying...
I need a step by step solution of the following problem; (Figure 7-2: Expanded Circular-Flow Model) Government purchases of goods and services = $200 Government borrowing = $70 Government $150 = Taxes Government transfers = $20 Private savings = $170 Consumer spending = $700 Households Wages, profit, interest, rent = $1,000 Markets for goods and services Factor markets Financial markets Gross domestic product Wages, profit, interest, rent - $1,000 Borrowing and stock issues by firms = $120 Firms Investment spending...
1. The expanded circular-flow diagram Aa Aa The diagram below shows an expansive circular-flow diagram for the U.S. economy, with arrows pointing in the direction that money flows. To facilitate reference, letter labels have been placed on certain arrows of the diagram Government purchases of goods and services Government borrowing Government Taxes Government transfers Private savings Households Wages, profit, interest, Consumer spending rent Markets for goods and services Factor markets Financial markets Gross Wages, profit, interest, rent domestic Borrowing and...
12) 12) In the circular flow model, A) firms are sellers of goods and services in goods markets. B) households are buyers of goods and services in the factor markets C) households are sellers of factor services in goods markets. D) firms are sellers of the factors in factor markets. B) firms are buyers of goods and services in final markets 13) 13) Which one of the following is an income flow from firms to households? A) goods and services...
5. The circular flow model Aa Aa The following diagram presents a circular flow model of a simple economy. The outer (green) set of arrows shows t flow of money, and the inner (red) set of arrows shows the corresponding flow of inputs and outputs Consumption Spending Product Markets Revenue (Households Buy, Firms Sell) Goods and Services Purchased Goods and Services Sold Households Firms Capital, Land, Labour and Entrepreneurship Inputs for Production Factor Markets (Households Sell, Firms Buy) Wages, Rent...
2. The circular flow of income and expenditure The income and expenditure approaches to measuring a nation's GDP can be combined using the circular flow model. Categorize each flow in the following table as part of either aggregate demand or national income. Flow Aggregate Demand National Income Net taxes (NT) O Investment spending (1) Consumption (C) Government purchases (G) OOO Net exports (X - IM) Disposable income (DI) 0 While national income and domestic product must be equal, income must...
7. Which one of the following is an example of the circular flow model and shows the interdependence of households and firms? a. The firms go to the resource market to supply resources that households demand and, in turn, provide households with the goods and services produced for the product markets. b. Households demand their resources from the firms in the factor markets and, in turn, supply in the product market the goods and services produced by firms. c. The...
The following shows the circular-flow diagram for the closed economy of Wenatchee Government purchases of goods and services Government borrowing Government Taxes Government transfers Consumer spending Private savings Households Wages, profit, interest, rent Markets for goods and services Factor markets Financial markets Total spending on goods and services Wages, profit, interest, rent Borrowing and stock issues by firms Firms Investment spending Govemment purchases of goods and services Govemment borrowing Transfers Wages, profit, interest, rent Private savings $500 $200 $100 $2900...