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In the circular flow model, what are the two major markets? Define each sector in detail and give examples? What roles do households play and
- In the circular flow model, what are the two major markets? Define each sector in detail and give examples?
- What roles do households play and what roles do businesses play in each market? Explain the circular flow in detail.
- Describe the three basic forms of businesses in detail list examples of each (sole-proprietorship, partnership and corporation).
Costs Revenue of production BUSINESSES Buy factors of production Sell products Goods and services FACTOR MARKET Households sell Firms buy PRODUCT MARKET Firms sell Households buy Money income ( Labour, land, capilar preneurial terest, profits) ability entre- (wages, rents, HOUSEHOLDS Sell factors of production Buy products Goods and serv expenditures Consumption expe
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Exploring Economics
Authors: Robert L Sexton
5th Edition
978-1439040249, 1439040249
