Question

business

Using P for the product market and F for the factor market, indicate the market in which the exchanges below

Are likely to occur (when using the Circular Flow Model):

 

__________1.  A book publisher sells books to bookstores.

 __________2.  A book publisher buys paper from a firm.

__________3.  The government buys vehicles from a firm.

__________4.  Businesses borrow money from banks.

 __________5.  A government employs new civil servants.

 __________6.  Households provide expertise to industry.


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