Economics: Principles & Policy
14th Edition
ISBN: 9781337912679
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning US
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Chapter 24, Problem 2DQ
To determine
The circular flow of an economy.
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Afghanistan didn't buy covid vaccine or produce covid vaccine and what is the impact to the economy? explain in diagram and 2 graphs
Homework (Ch 02)
The following diagram presents a 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
purchase
in product markets.
Based on this model, firms earn revenue when
Suppose Lucia earns $550 per week working as a corporate attorney for Rowan and Martin Associates. She uses $10 to buy a box of aspirin at Pillmart
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Chapter 24 Solutions
Economics: Principles & Policy
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Similar questions
- The economy of Sydaveria has developed, and the inhabitants use money in the form of shells. Draw a circular flow diagram showing households, firms, factors and markets. Firms produce fish and potatoes. Households provide land and labor to firms. Describe how the impact of each of the following events would spread around the circle. A devasting hurricane floods many of the potato fields. A very productive fishing season leads to a large increase in fish caught. The inhabitants of Sydaveria discover High School Musical and spend several months at festivals dedicated to singing and dancing to the soundtrack.arrow_forwardDraw a simple circular flow diagram (without government) and use the relationships shown in the diagram to explain how producers’ optimism about future sales can lead to an increase in future sales.arrow_forwardQuestion 1 Classify the following as microeconomics or macroeconomics and provide a justification for your choice. Parliament is debating the option of implementing a Value Added Tax (VAT) as a means to cut the government deficit. Choose... Choose... The effect of government spending on the nation's unemployment rate. Micro, examining one firm in the economy Macro, examining the entire economy. Micro, examining one sector of the economy The Bureau of Labour Statistics projects a 22.5% increase in the number of workers in Choose... the healthcare industry from 2008 to 2018. A firm's decision about how many workers Choose... to hire Please answer all parts of the question.arrow_forward
- I need help with this problemarrow_forwardEconomics: Public Economics Question: 1 Refer to Graph 2. Suppose the TANF program is established. What is the individual’s consumption if they spent all of their time in leisure? Do not include a dollar sign when writing your answer. Guess: 10,000 (with margin: 0) Question: 2 Refer to Graph 2. For every dollar earned by the individual below the cutoff (such that they are eligible for TANF), benefits decrease by how much? Do not include a dollar sign when writing your answer. Guess: 0.5 (with margin: 0) Question 3: Which of the following types of balanced budget requirements (BBRs) are least effective in restricting deficits? a. ex post BBRs b. neither ex ante nor ex post BBRs c. both ex ante and ex post BBRs d. ex ante BBRs Thank you for your help and support Academic Agent!arrow_forwardIn detail, can you explain what is happening in the graph? Two paragraphs.arrow_forward
- application of linear algebra, explain your solutionarrow_forwardQuestion 1: Specific Factors Model Let assume, you live in an economy where two goods are being produced (say x and y) and labor can be allocated in the production of either good freely, but the other factor is specific. For your more information, good “x” can be produced with labor and capital and good “y” can be produced with labor and land. Given the situation, a) How much does the each good the economy produced? b) How much labor will be employed in each sector?arrow_forwardAssume the following model of the economy: Y =C+I+G C = 120 + 0.5 (Y-T) I= 100 -10r G = 50 T=40 Identify each of the variables and briefly explain their meaning.arrow_forward
- The graph is not incomplete, this is how the question was givenarrow_forwardDraw the circular flow diagram of 4 main components (Agents) of macroeconomics and clearly show the interaction among them.arrow_forwardLearning Activity 9.2 Question 2 Consider an economy that produces and consumes shoes and houses. In the table below are data for two different users. 2000 2001 Price of a house $120,000 $145,000 Number of houses produced 1000 1050 Price of a pair of shoe $150 $170 Number of pairs of shoes produced 650,000 525,000 Year 2000 Year 2001 Price of a house $120,000 Price of a pair of shoes $150 $170 Number of houses produced 1,000 Number of pairs of shoes 650,000 525,000 (a) What is the Consumer Price Index (CPI)? (b) Calculate the CPI for both years. (c) Calculate the rate of inflation for 2001 using the CPI. (d) Calculate the GDP deflator for both years. (e) Calculate the rate of inflation for 2001 using the GDP deflator.arrow_forward
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