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Which model illustrates the continuous flow of spending production and income between the different sectors in an economy?
Wiki User
∙ 12y ago
economic cycle
Wiki User
∙ 12y ago
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WHAT ARE three major flow in the economy?
production, income and spending.
Is spending 40 dollars to get a car detailed a factor of production?
yes
When a state government chooses to build more roads the required resources are no longer available for spending on public education. This dilemma illustrates the concept of what?
Opportunity cost.
When a state government chooses to build more roads the required resources are no longer available for spending on public education This dilemma illustrates the concept of?
Opportunity cost.
What term in economics describes spending that pays for the production and accumualation of capital goods?
investment
What helped fuel postwar consumer spending?
The need for continued production of materials and supplies to support the military after war sparked the economic boom after World War II. The economic boom triggered spending and production in the housing and automobile markets.
How do increase in consumer spending affect the economy?
With an increase in consumer spending, there will be an increase in demand for goods/services, and therefore an increase in production, which drives the economy up.
What is a contraction that occurs when there is a decline in spending and a cut back on production and lay off workers?
recession
Is the volume variance a controllable variance from a spending point of view?
No, the volume variance is controllable but not related to spending. The volume variance calculates the dollar impact of producing more or less than the budgeted production volume. No, the volume variance is controllable but not related to spending. The volume variance calculates the dollar impact of producing more or less than the budgeted production volume.
What is contraction that occurs when there is a decline in spending and businesses cut back on production and lay off workers?
recession
What is it called when there is a decline in spending and businesses cut back on production and lay off workers?
A downturn or recession.
What is a contraction that occurs when there is a decline in spending and business cut back on production and lay off workers?
recession
