4. Lets put dollar amounts on the flows in the circular flow diagram of Figure 2.2 ....
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4. Let’s put dollar amounts on the flows in the circular flow diagram of Figure 2.2 . LO5
a. Suppose that businesses buy a total of $100 billion of the four resources (labor, land, capital, and entrepreneurial ability) from households. If households receive $60 billion in wages, $10 billion in rent, and $20 billion in interest, how much are households paid for providing entrepreneurial ability?
b. If households spend $55 billion on goods and $45 billion on services, how much in revenues do businesses receive in the product market?
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Related Book For
Economics Principles Problems And Policies
ISBN: 9780073511443
19th Edition
Authors: Campbell Mcconnell ,Stanley Brue ,Sean Flynn
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