4. Let’s put dollar amounts on the flows in the circular flow diagram of Figure 2.2. LO2.5

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?