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Why do some firms earn so much more money than others in a market economy?
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Describe the circular Flow Model?
The circular flow model is a summary of the operation of a market economy, that is the flow between production factors (firms) and households. Firms provide an income to households though employment (labour) and in the same manor households spend their income on firms for services and products.
In a free market economy the factor market involves which type of exchange?
a. the goods and services that households produce are purchased by firms.b. firms purchase factors of production from householdsc. Households purchase factors of production from firmsd. firms loan money to households to purchase capital
In a market economy the money incomes of individuals depend primarily upon?
In a market economy, the money incomes of individuals depend primarily upon
Characteristics of free market economy?
free market economy is an economy ruled by the people, not the government. individuals make decisions about their employment, how to use or accumulate money what to buy and to save money or spend it.
Why does poverty exist in a free market economy?
Poverty exists in a free market economy because people can choose how to make their money.
How do money market firms work?
Money market fund firms operate by combining many small investors' funds to accumulate the volume of money needed to buy money market instruments.
Describe the circular Flow Model?
The circular flow model is a summary of the operation of a market economy, that is the flow between production factors (firms) and households. Firms provide an income to households though employment (labour) and in the same manor households spend their income on firms for services and products.
In a free market economy the factor market involves which type of exchange?
a. the goods and services that households produce are purchased by firms.b. firms purchase factors of production from householdsc. Households purchase factors of production from firmsd. firms loan money to households to purchase capital
In the circular flow of goods and services what does the resource market represent?
all the exchanges of goods and services in an economy
In a market economy the money incomes of individuals depend primarily upon?
In a market economy, the money incomes of individuals depend primarily upon
Characteristics of free market economy?
free market economy is an economy ruled by the people, not the government. individuals make decisions about their employment, how to use or accumulate money what to buy and to save money or spend it.
Why does poverty exist in a free market economy?
Poverty exists in a free market economy because people can choose how to make their money.
What does the government the in a centrally planned economy?
Everything linked to money and production. Firms, taxes are some examples.
What is the money market used for?
The money market is used for one to invest money to make more money. The money market is what helps the economy to grow and prosper by one being interested to invest one's income.
A weak stock market is a?
A weak stock market occurs when businesses lose money due to low consumerism, due to a slowed economy. This economy is nicknamed a BEAR economy.
Who created market economy?
government and people created market economy . Because government decide the market price . But sometimes people make their own market prices to get more money.
What does the government control in a centrally planned economy?
Everything linked to money and production. Firms, taxes are some examples.
