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In circular flow model how are households compensated by firms for the factors of production they provide?
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In the circular model how are households compensated by firms for the factors of production they provide?
With wages, rent and dividends.
Who own the factors of production in Canada?
Alex dabek
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 the economy what do households do?
Allow Financial sector to hold savings. Pay tax (direct & indirect) to the Government. Spend on consumption, which goes to Producers. Provide factors of production / resources to Producers.
Which economic institution owns the factors of production in a market economy?
communism households
In the circular model how are households compensated by firms for the factors of production they provide?
With wages, rent and dividends.
What owns the factors of production?
Factors of production are typically owned by individuals, businesses, or the government. Land is owned by individuals or governments, labor is owned by individuals, capital is owned by businesses or individuals, and entrepreneurship is typically owned by individuals who take the risk to start and run a business.
Who own the factors of production in Canada?
Alex dabek
What are three factors of production and the two types of payments that appear in the free market circular flow model?
The three factors of production are capital, labor, and land. Two types of payments are from firms and households. These payments go to the goods and services markets.
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 the economy what do households do?
Allow Financial sector to hold savings. Pay tax (direct & indirect) to the Government. Spend on consumption, which goes to Producers. Provide factors of production / resources to Producers.
Which economic institution owns the factors of production in a market economy?
communism households
In a free market economy firms purchase from households?
In a free market economy, firms purchase factors of production such as labor, from households.
In the circular flow model economic resouces is both production and the factors of production?
True
In the circular flow model economic resources is both production and the factors of production?
truetrue
What is the role of households in the economic cycle?
To provide all the factors of production to resource markets.
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.
