a. Suppose that businesses buy a total of $140 billion of the four resources (labor, land, capital, and entrepreneurial ability) from households. If households receive $76 billion in wages, $18 billion in rent, and $28 billion in interest, how much are households paid for providing entrepreneurial ability? $ |billion b. If households spend $75 billion on goods and $65 billion on services, how much in revenues do businesses receive in the product market? 2$ billion
a. Suppose that businesses buy a total of $140 billion of the four resources (labor, land, capital, and entrepreneurial ability) from households. If households receive $76 billion in wages, $18 billion in rent, and $28 billion in interest, how much are households paid for providing entrepreneurial ability? $ |billion b. If households spend $75 billion on goods and $65 billion on services, how much in revenues do businesses receive in the product market? 2$ billion
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Let's put dollar amounts on the flows in the circular flow diagram below.
Money Income
RESOURCE
MARKET
Labor, land
· Households sell
• Businesses buy
Costs
neurial abilit
Resources
HOUSEHOLDS
BUSINESSES
• ell resources
• buy products
• buy resources
• sell products
and services
PRODUCT
MARKET
· Businesses sell
- Households buy
Revenue
Consumption
Instructions: Enter your answers as a whole number.
a. Suppose that businesses buy a total of $140 billion of the four resources (labor, land, capital, and entrepreneurial ability) from
households. If households receive $76 billion in wages, $18 billion in rent, and $28 billion in interest, how much are households paid
for providing entrepreneurial ability?
$
billion
b. If households spend $75 billion on goods and $65 billion on services, how much in revenues do businesses receive in the product
market?
2$
billion
(wages, rents,
Interest, profits)
capital, entrepre.
and services](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F310c8e95-558a-4825-ac7b-730f73892ab8%2F19c73421-25c6-499a-aead-f4d0e9281b51%2Fca2wvui_processed.png&w=3840&q=75)
Transcribed Image Text:Let's put dollar amounts on the flows in the circular flow diagram below.
Money Income
RESOURCE
MARKET
Labor, land
· Households sell
• Businesses buy
Costs
neurial abilit
Resources
HOUSEHOLDS
BUSINESSES
• ell resources
• buy products
• buy resources
• sell products
and services
PRODUCT
MARKET
· Businesses sell
- Households buy
Revenue
Consumption
Instructions: Enter your answers as a whole number.
a. Suppose that businesses buy a total of $140 billion of the four resources (labor, land, capital, and entrepreneurial ability) from
households. If households receive $76 billion in wages, $18 billion in rent, and $28 billion in interest, how much are households paid
for providing entrepreneurial ability?
$
billion
b. If households spend $75 billion on goods and $65 billion on services, how much in revenues do businesses receive in the product
market?
2$
billion
(wages, rents,
Interest, profits)
capital, entrepre.
and services
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