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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 the circular flow model firms compensate households with which items?
households
What diagram shows the movement of goods and services and money from firms to households and from households to firms?
Circular flow
What circular flow models assumes the economy consists of which sectors?
households and firms
In the circular flow model, households supply firms with which of these items?
labor, capital, and resources
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 the circular flow model firms compensate households with which items?
households
What diagram shows the movement of goods and services and money from firms to households and from households to firms?
Circular flow
What circular flow models assumes the economy consists of which sectors?
households and firms
In the circular flow model, households supply firms with which of these items?
labor, capital, and resources
In the circular model how are households compensated by firms for the factors of production they provide?
With wages, rent and dividends.
In the circular flow model households supply firms with which items?
Labor, capitital, and raw materials.
Explain the connection between householdsand firms in the economy?
The connection between households and firms in the economy stems from the fact that consumers in this case households work for firms to earn wages as the company makes profits due to increased production.
The circular flow of economic activity describes an economy that is free of markets?
The market is the mechanism that brings together households and firms.
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)
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)
