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In the circular flow diagram, households play a crucial role as both consumers and suppliers. They provide factors of production, such as labor, to businesses in exchange for wages. Simultaneously, households use their income to purchase goods and services produced by businesses, creating a continuous flow of money and resources in the economy. This interaction illustrates the interdependence between households and businesses in sustaining economic activity.
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What do 2 loops in the circular flow diagram represent?
The flow of goods and the flow of services.
Explain four sector model with circular-flow diagram?
explain with the help of diagram circular flow of income model in a four sector economy?
What is the role for consumers and producers in a free market system?
A circular flow model
The circular flow of economic activity sHow is the interdependency of firm and household decision making?
The circular flow of economic activity shows the interdependency of firm and household decision making.TrueFalse TRUE
Which is an example of circular flow from a business to a household?
An individual receives an income.
What do 2 loops in the circular flow diagram represent?
The flow of goods and the flow of services.
What is the role for consumers and producers in a free market system?
A circular flow model
Explain four sector model with circular-flow diagram?
explain with the help of diagram circular flow of income model in a four sector economy?
The circular flow of economic activity sHow is the interdependency of firm and household decision making?
The circular flow of economic activity shows the interdependency of firm and household decision making.TrueFalse TRUE
Which is an example of circular flow from a business to a household?
An individual receives an income.
If goods and services flow clockwise in a circular economic flow diagram then consumption expenditures flow.....?
Counterclockwise and revenues flow counterclockwise.
What does a circular-flow diagram?
Total expidenture should equal total income
What does gross domestic product measure in circular flow diagram?
flow of money, total income, total expenditure
What does a circular-flow diagram show?
Total expidenture should equal total income
In the circular flow diagram households?
Make consumption expenditures and receive goods and services.
What role do businesses that go tothe market play in the circular model?
what role do businesses that go to the market play in the circular flow model
What diagram shows the movement of goods and services and money from firms to households and from households to firms?
Circular flow
