Let's put dollar amounts on the flows in the circular flow diagram below.RESOURCEMARKETCostsResourcesBUSINESSESbuy resources-sell productsandRevenueHouseholds sell-Businesses buyPRODUCTMARKET-Businesses sell-Households buybilliononey Income (wages rentsLabor, and capitalDeurial abayInterest, profitaentrepreHONSEHOLDS-Presources.buy productsGoods andds and servicesConsumptionInstructions: Enter your answers as a whole number.Suppose that businesses buy a total of $190 billion of the four resources (labor, land, capital, and entrepreneurial ability) fromhouseholds. If households receive $96 billion in wages, $28 billion in rent, and $38 billion in interest, how much are householdspaid for providing entrepreneurial ability?billionb. If households spend $100 billion on goods and $90 billion on services, how much in revenues do businesses receive in theproduct market?

Let's put dollar amounts on the flows in the circular flow diagram below. Costs Resources BUSINESSES .buy resources sell products Goom and service Revenue RESOURCE MARKET Households sell -Businesses buy PRODUCT MARKET Businesses soll -Households buy Money neurial Labor, and, capital Interest prof come images ents entrepre Goods and HONSEHOLDS resources .buy products Service Consumption Instructions: Enter your answers as a whole number. a. Suppose that businesses buy a total of $190 billion of the four resources (labor, land, capital, and entrepreneurial ability) from households. If households receive $96 billion in wages, $28 billion in rent, and $38 billion in interest, how much are households paid for providing entrepreneurial ability? billion b. If households spend $100 billion on goods and $90 billion on services, how much in revenues do businesses receive in the product market? billion

Let's put dollar amounts on the flows in the circular flow diagram below. Costs Resources BUSINESSES .buy resources sell products Goom and service Revenue RESOURCE MARKET Households sell -Businesses buy PRODUCT MARKET Businesses soll -Households buy Money neurial Labor, and, capital Interest prof come images ents entrepre Goods and HONSEHOLDS resources .buy products Service Consumption Instructions: Enter your answers as a whole number. a. Suppose that businesses buy a total of $190 billion of the four resources (labor, land, capital, and entrepreneurial ability) from households. If households receive $96 billion in wages, $28 billion in rent, and $38 billion in interest, how much are households paid for providing entrepreneurial ability? billion b. If households spend $100 billion on goods and $90 billion on services, how much in revenues do businesses receive in the product market? billion

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

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.
RESOURCE
MARKET
Costs
Resources
BUSINESSES
buy resources
-sell products
and
Revenue
Households sell
-Businesses buy
PRODUCT
MARKET
-Businesses sell
-Households buy
billion
oney Income (wages rents
Labor, and capital
Deurial abay
Interest, profita
entrepre
HONSEHOLDS
-Presources
.buy products
Goods and
ds and services
Consumption
Instructions: Enter your answers as a whole number.
Suppose that businesses buy a total of $190 billion of the four resources (labor, land, capital, and entrepreneurial ability) from
households. If households receive $96 billion in wages, $28 billion in rent, and $38 billion in interest, how much are households
paid for providing entrepreneurial ability?
billion
b. If households spend $100 billion on goods and $90 billion on services, how much in revenues do businesses receive in the
product market?

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