Read the statement below carefully, and decide whether it is true or false. And then EXPLAIN...
Read the statement below carefully, and decide whether it is true or false. And then EXPLAIN your answer (whether "true" or "false").
According to the circular flow model of the market system, when resource-owners’ money income is rising, then the costs to business firms must be falling.
Homework Answers
False
When resource owners money income is rising that means they are getting paid high for renting out or for selling out their resources. These resources are being used by the firms and they paid to the owners . The payment of these resources are cost of that firm. so indirectly the cost will also increase.
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