Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 2.2, Problem 4QQ
To determine
Circular flow in the two sector model.
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Give typing answer with explanation and conclusion
Which of the following illustrates goods markets? A. Maggie took an educational loan of $10,000. Safeway sells milk at $4.35 a gallon. B. Anna got a job with a public firm. Smith wants to take a vacation in December. C. Walmart sells potatoes at $2.14 a pound. Ann bought a new condo for $200,000. D. Banks have raised interest rates to 2.5 percent. Ryan enjoys playing chess.
Part A. In the circular flow diagram what do households do in the factor market, buy or sell?
Part B. In the Factor Market do firms buy or sell?
Households play a role in the circular flow of goods by:
A. providing natural resources to businesses.B. designing and producing new goods.C. selling goods that companies produce.D. purchasing goods at product markets.
Chapter 2 Solutions
Economics (Irwin Economics)
Ch. 2.2 - Prob. 1QQCh. 2.2 - Prob. 2QQCh. 2.2 - Prob. 3QQCh. 2.2 - Prob. 4QQCh. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 6DQ
Ch. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQCh. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - Prob. 3RQCh. 2 - Prob. 4RQCh. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4P
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- Which of the following is true in the markets for factors of production in the circular-flow diagram, a. households provide firms with labor, land, and capital. b. households provide firms with savings for investment. c. firms provide households with goods and services. d. firms provide households with revenue.arrow_forwardAccording to a simple circular-flow diagram, how many markets do households and firms interact in? A. four types of markets B. one type of market C. two types of markets D. three types of marketsarrow_forwarda. What do households do in the factor market, buy or sell? A. buy B. sell b. In the Factor Market do firms buy or sell? A. buy B. sellarrow_forward
- In the simple circular-flow diagram, in which market are households sellers? the factors of production market the goods and services market both the factors of production market and the goods and services market neither the factors of production market nor the goods and services marketarrow_forwardGross domestic product (GDP) figure gives an understanding of a marketť's Select one: a Economic environment Ob.Demographic environment c. Natural environment O0 d. Technological environment Next pagearrow_forward#5. Economic s Income level and savings level are $7500 and $3200 Find APS.arrow_forward
- In the circular-flow diagram, firms are sellers in Select one: a. the factors of production market b. both markets C. the goods and services market. d. neither marketarrow_forwardThe factors of production are best defined as the a. output produced from raw materials. b. inputs used to produce goods and services c. wages paid to the workforce. d. goods and services sold in the market.arrow_forwardMain Content Firms B D arrow A arrow B arrow C Markets for Goods and Services arrow D Markets for Factors of Production Refer to the figure. You spend $2 to buy a cup of coffee. Which arrow shows the flow of $2? B Households Darrow_forward
- The circular-flow diagram illustrates that, in marketsfor the factors of production,a. households are sellers, and firms are buyers.b. households are buyers, and firms are sellers.c. households and firms are both buyers.d. households and firms are both sellers.arrow_forwardEconomy can be represented by economic models. One of the models we use to understand economy is a “Circular Flow Diagram”. Sketch a Circular flow model and explain the flow of money and flow of goods and services and factors of production caused by the following activities. i. Kaleem pays a shopkeeper Rs.150 for a liter of milk. ii. Mustaqeem while working at a fast-food restaurant earns Rs.500 per hour. iii. Sana spends Rs.500 on a haircut. iv. Mustafa receives Rs.200,000 from his 10 percent ownership of Salman Chemicals Ltd.arrow_forwardb) Economy can be represented by economic models. One of the models we use to understand economy is a “Circular Flow Diagram”. Sketch a Circular flow model and explain the flow of money and flow of goods and services and factors of production caused by the following activities. i. Kaleem pays a shopkeeper Rs.150 for a liter of milk. ii. Mustaqeem while working at a fast-food restaurant earns Rs.500 per hour. iii. Sana spends Rs.500 on a haircut. iv. Mustafa receives Rs.200,000 from his 10 percent ownership of Salman Chemicals Ltd.arrow_forward
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