Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 1PA
To determine
Circular-flow diagram.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Draw a circular-flow diagram. Identify the partsof the model that correspond to the flow of goodsand services and the flow of dollars for each of thefollowing activities.a. Selena pays a storekeeper $1 for a quart of milk.b. Stuart earns $8 per hour working at a fast-foodrestaurant.c. Shanna spends $40 to get a haircut.d. Salma earns $20,000 from her 10 percentownership of Acme Industrial.
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. Stuart earns $4.50 per hour working at a fast-food restaurant.
Discuss the circular flow diagram based on your own understanding and give an example where you participated in each market as member of a household.
Chapter 2 Solutions
Principles of Microeconomics (MindTap Course List)
Knowledge Booster
Similar questions
- A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won't buy it because they dont like the taste. From an economic perspective, the company should keep the hamburger on the menu because they have spent so much money and time developing and promoting the product. spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time. pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost. keep trying to sell the hamburger so that people who developed and promote it have a job with the company.arrow_forwardHealthcare B A C PPF F Education 1.1.1 Define the curve AF. 1.1.2. Explain the following points in relation to the curve and the basic economic problem of scarcity. 1.1.2.1 Point B 1.1.2.2 The move from Point B to Point C 1.1.2.3 Points inside the curve 1.1.2.4 Points outside the curvearrow_forward1. How can we apply the core principles of scarcity, choice, opportunity cost and cost-benefit analysis to the decision-making processes? 2. Explain the difference between micro economics and macroeconomics. 3. Demonstrate an understanding of the coordinate system by using it to outline the relationship between economic variables.arrow_forward
- A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won't buy it because they don& like the taste. From an economic perspective, the company should keep the hamburger on the menu because they spent so much money and time developing and promoting the product. spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time. pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost. keep trying to sell the hamburger so that people who developed and promote it have a job with the company.arrow_forwardImagine that you just paid $50 for a new pair of jeans. According to the circular flow diagram, what decisions were made concerning the jeans you purchased, and who made decisions about the jeans you bought?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_forward
- 96 1L1 X Joh Desmos | Graphing Calculator X Course Modules: ALG/ADV-Fal X + e DeltaMath f → e a deltamath.com/app/student/solve/14949200/solveContextInequalitySystemGraphically Jan T0, 8:47:32 PM Watch help video Jack and his children went into a restaurant where they sell hamburgers for $6 each and tacos for $2 each. Jack has $30 to spend and must buy at least 8 hamburgers and tacos altogether. If x represents the number of hamburgers purchased and y represents the number of tacos purchased, write and solve a system of inequalities graphically and determine one possible solution. Inequality 1: y 2 5x + 8 plot switch shade Inequality 2: y sv plot switch shade fi 20. 18 15 14 13 12 1. 8. MacBook 000 F4 000 F3 DD %23 %24arrow_forward0000 Samsung Quad Camera Shot with my Galaxy A21s GRADE 9 TIME: 1 HOUR MID-YEAR-EXAMINATION TERM 2 PAPER 2 TOTAL: 50 MARKS SECTION B QUESTION 1 [10 marks; 12 minutes] Answer the following questions. 1.1 Choose the correct answer and write down the correct letter e.g. 1.1.4 C 1.1.1 The Command economy is also called: A) Planned economy B) Market economy C) Mixed economy 1.1.2 The partlicipants in the circular flow of a closed economy are: Households Businessesarrow_forwardIn the simple circular-flow diagram, a. households own the factors of production. b. households buy all the goods and services that firms produce. c. land, labor, and capital flow from households to firms. d. All of the above are correct.arrow_forward
- Healthcare PPF Education 1.1.1 Define the curve AF. 1.1.2. Explain the following points in relation to the curve and the basic economic problem of scarcity. 1.1.2.1 Point B 1.1.2.2 The move from Point B to Point C 1.1.2.3 Points inside the curve 1.1.2.4 Points outside the curvearrow_forwardIdentify where the appropriate entries go on the circular flow diagram?arrow_forward5 8 Market for Factors of Production 7 6 Bank of America pays rent for its office rentals. O Dale pays for his movie ticket. O Peter buys gourmet jam. O Turner Construction rents trucks for its business. 2 3 Market for Goods & Services Which of the descriptions below best matches the flow described by #5? Hint: To see the origin of the flow, pay attention to the subject of the sentence, are we talking about a firm or a household? To see the kind of flow, first, think whether it is a monetary flow or a real flow and, if it's a real flow, think whether we are talking about goods & services or about factors of production -- this will help you identify the market involved. Target earns big revenue on Black Friday. O Spencer receives wages for tutoring. O Laura offers her labor delivering sandwiches for Jimmy John's. O Safeway sells groceries. 4 3/1 1 Secondsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning