MACROECONOMICS >C<
19th Edition
ISBN: 9781121758872
Author: McConnell
Publisher: Mcgraw-Hill/Create
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Question
Chapter 2.2, Problem 3QQ
To determine
Circular flow in the two sector model.
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I don’t understand where the flow is supposed to begin? If it’s circular technically it doesn’t have a beginning right? Can you explain this I find this question super confusing. 
ASAPPP! I need the 2 nd question
2. Explain the economic activities between consumers and producers using a circular flow image.
Chapter 2 Solutions
MACROECONOMICS >C<
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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- a. Draw a circular-flow diagram. Identify the parts of the model that correspondto the flow of goods and services and the flow of dollars for each of thefollowing activities. i. Paul purchases a pair of shoes for $30. ii. Shannon receives a salary of $1,500 per week at the supermarket whichshe works. iii. Honda Limited receives $20,000 for the sale of a sports utility vehicle. iv. Mark earns $2,000 from his 15 percent ownership of Apple stock.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_forwardIn the circular-flow diagram households receive money for ______ in the ______ market?arrow_forward
- Select the number of the question and the letter to indicate the answer you consider correctfor each question. Answers to all questions are to be recorded on the answer sheet. (Pleasenote - Do not submit the full question with a circle answer. ONLY the number and theletter).1. The Law of demanda. applies to final consumer goods but not to the productive resources purchased bybusiness firms.b. tells us how much of a good people want, but not necessarily how much of that good theyare willing to pay for.c. tells us that when the price of a good falls, quantity demanded will increase.d. applies only to goods that are not absolute necessities. 2. The law of supply states that all other things remaining the same:a. as the price of a good increases, supply of the good will increase.b. as the price of a good increases, the quantity of the good supplied willincrease.c. as the price of a good increases, demand for the good will increase.d. as the price of a good increases, the quantity of the…arrow_forwardGive 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.arrow_forwardWhich 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_forward
- Please provide steps by step answer with proper explanation with final answerarrow_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_forwardIn 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_forward
- When points are positioned within the budget line, what does it mean to quantities? a. all points yields satisfaction b. the Quantity Combination of Good Y and Good X is actually not equal c. the Quantity Combination of Good Y and Good X is optimal d. all point suggest indifference curve This is the concept that explains that trends of values continues to increase but at a certain point it begins to do down a. Law of Production Capacity b. Natural course of Economic Propensities c. Law of Demand d. Law of Diminishing Marginal Utility What happen when you add Total Fix Cost and Total Variable cost that is divided by their quantity. a. the assumption is that goods were produce but yet to be priced b. the assumption is that goods were produce but yet to be equalized c. the assumption is that goods were produce but yet to be quantified d. the assumption is that goods were produce but yet to be determinedarrow_forwardDiscuss the circular flow diagram based on your own understanding and give an example where you participated in each market as member of a household.arrow_forwardQuestion 10arrow_forward
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