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Circular Flow Model | Definition & Examples

Circular Flow Model | Definition & Examples

545K viewsFeb 9, 2016

Study.comBrianna Whiting

The circular-flow model The following diagram presents the circular-flow model of a simple economy: The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Markets for Goods and Services Firms Households Markets for Factors of Production Based on this model, households earn income when they purchase inputs in markets for factors of production. Suppose Alyssa earns 5600 per week working as a

The circular-flow model The following diagram presents the cir…

Circular Flow of Economic Activity | Overview & Models

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Suppose we extend the circular flow model to add imports and exports. Copy the circular flow diagram onto a sheet of paper and then add a foreign country as a third agent. Draw a rough sketch of the flows of imports, exports, and the payments for each on your diagram. | Numerade

Suppose we extend the circular flow model to add imports and exports…

Draw a circular-flow diagram. Identify the parts of the model that correspond to the flow of goods and services and the flow of dollars for each of the following activities. a. Selena pays a storekeeper 1 for a quart of milk. b. Stuart earns 8 per hour working at a fast-food restaurant. c. Shanna spends 40 to get a haircut. S. Salma earns 20,000 from her 10 percent ownership of Acme Industrial. | Numerade

Draw a circular-flow diagram. Identify the parts of the model tha…

The Circular Flow Model

The Circular Flow Model

In the simple circular flow model, what do firms give to househ... | Filo

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