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Firms in the circular flow model represent the producers of goods and services within an economy. They interact with households by providing products in exchange for consumer spending, which is a key component of the flow of money. Additionally, firms pay wages to households in return for labor, creating a continuous loop of economic activity. This model highlights the interdependence between firms and households in driving economic growth and maintaining equilibrium.
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What diagram shows the movement of goods and services and money from firms to households and from households to firms?
Circular flow
A circular flow model shows the relationship between consumers and?
Firms
In the circular flow model firms compensate households with which items?
households
What is Circular flow of income between households and firms?
from the household, the income flow which is the purchase of goods and services will become firms. then the income flow from the firms which is the wages, interest and rents will go back to the households.
What circular flow models assumes the economy consists of which sectors?
households and firms
What diagram shows the movement of goods and services and money from firms to households and from households to firms?
Circular flow
A circular flow model shows the relationship between consumers and?
Firms
In the circular flow model firms compensate households with which items?
households
What is Circular flow of income between households and firms?
from the household, the income flow which is the purchase of goods and services will become firms. then the income flow from the firms which is the wages, interest and rents will go back to the households.
What circular flow models assumes the economy consists of which sectors?
households and firms
What is simple circular flow model?
Depicts how firms produce and sell goods and services.
In the circular flow model, households supply firms with which of these items?
labor, capital, and resources
In the circular flow model household supply firm with what items?
In the circular flow model, households supply firms with factors of production, which include labor, capital, land, and entrepreneurship. In return, firms provide households with goods and services, creating a continuous flow of economic activity. This interaction highlights the interdependence between households and firms in an economy.
What do the inner arrows of the circular flow model represent?
flow of money payments(Kaylop)Factor services ( From household to firms) &Goods & Services (From firms to households).[in a 2 sector economy)
What do the inner arrows of the circular flow model represents?
flow of money payments(Kaylop)Factor services ( From household to firms) &Goods & Services (From firms to households).[in a 2 sector economy)
What do the inner arrows of the circular flow model represent.?
flow of money payments(Kaylop)Factor services ( From household to firms) &Goods & Services (From firms to households).[in a 2 sector economy)
In the circular flow model households supply firms with which items?
Labor, capitital, and raw materials.
