Firms and households interact in the market economy where factors of production; goods and services; and...

Firms and households interact in the market economy where factors of production; goods and services; and money are moving and circulate. Discuss the circular flow of market using an appropriate diagram

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Rahul Sunny answered 6 months ago

Explain the function of the goods and services market and the factors of production market in...

Explain the function of the goods and services market and the factors of production market in the Circular Flow Model. Explain both real and money flows and the role of prices in both the product and factor markets. Using an example, explain why the production possibilities frontier is bowed outward. Use the production possibilities frontier to explain fully economic growth, efficiency, and inefficiency. Suppose that China can use cheaper labour to produce every product more cheaply than Canada. Explain why...

Describe the circular flow of the economy by discussing the two markets where households and firms...

Describe the circular flow of the economy by discussing the two markets where households and firms meet. Explain what gets exchanged between these markets and how the two markets interact.

in a market economy who decides what goods and services will be produced?

Who are net savers in an economy: households or firms? Why?

Essay: Production and costs of goods or services for a local and international market Instructions For...

Essay: Production and costs of goods or services for a local and international market Instructions For this activity you must write an argumentative essay on the advantages and disadvantages that a manager of any business should consider, in terms of production and costs of goods or services, for a local and international market. After reviewing the study material, look for information in the virtual library (CRE-V) on production and costs in the short and long term, and isocost and isoquant...

Consider an economy where there are only three goods and services being sold – clothing, fruits...

Consider an economy where there are only three goods and services being sold – clothing, fruits and soda. Using this specific hypothetical economy, and the aforementioned goods, explain the three reasons why the demand curve for fruits is downward sloping along with relevant examples for each reason

explain how a market economy allocates resources to produce goods and services. As part of your...

explain how a market economy allocates resources to produce goods and services. As part of your answer, discuss (a) how prices and quantities are determined, (b) how markets respond to external shocks, and (c) how we evaluate market outcomes.

Consider the various ways that firms, households, and governments participate in the economy. (a) How are...

Consider the various ways that firms, households, and governments participate in the economy. (a) How are firms consumers? (b) How are households producers? (c) How are governments consumers OR producers?

Consider an economy in which two factors of production, labor and capital, produce two goods, capital...

Consider an economy in which two factors of production, labor and capital, produce two goods, capital intensive pharmaceuticals and labor-intensive clothing. Suppose that both factors of production are freely mobile across both industries and that all producers, consumers, capitalists and workers are price-takers. Suppose that there are currently steep tariffs on all imported goods, but there is a bill before Parliament to eliminate those tariffs, and the government has invited citizen representatives of workers and capitalists to express their opinions...

What is output market? What are the roles of firms and households in output markets?

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