Q.2.1.1 Identify the value of savings in this economy. Q.2.1.2 What is the value of tax revenue in this economy? Q.2.1.3 What is the value of investment spending in this economy?
Q.2.1.1 Identify the value of savings in this economy. Q.2.1.2 What is the value of tax revenue in this economy? Q.2.1.3 What is the value of investment spending in this economy?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter2: Choice In A World Of Scarcity
Section: Chapter Questions
Problem 16RQ: What is the difference between a positive and a normative statement?
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Good morning.
Please help me with this question from my textbook.
Refer to figure 1 which shows the income flows(Rm) in the economic circular flow model for a small economy.
![Q.2.1.1 Identify the value of savings in this economy.
Q.2.1.2 What is the value of tax revenue in this economy?
Q.2.1.3 What is the value of investment spending in this economy?
Q.2.1.4 Identify two injection flows that are illustrated in this flow diagram.
Q.2.1.5 From the information in Figure 1, identify whether this economy is
experiencing a budget deficit or a budget surplus. Support your answer
with information from the model.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa1dff170-05c0-4524-b2d4-30ebba3f1a28%2F31dd3b57-00b5-463b-aa88-f4c2a1c6749c%2Flh1covf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q.2.1.1 Identify the value of savings in this economy.
Q.2.1.2 What is the value of tax revenue in this economy?
Q.2.1.3 What is the value of investment spending in this economy?
Q.2.1.4 Identify two injection flows that are illustrated in this flow diagram.
Q.2.1.5 From the information in Figure 1, identify whether this economy is
experiencing a budget deficit or a budget surplus. Support your answer
with information from the model.
![Figure 1
FIRMS
400m
120m
80m 100m
oom
R90m
GOVERNMENT
FINANCIAL
FOREIGN
SECTOR
SECTOR
50m
som
220m
100m
HOUSEHOLDS](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa1dff170-05c0-4524-b2d4-30ebba3f1a28%2F31dd3b57-00b5-463b-aa88-f4c2a1c6749c%2Fzk9uhm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Figure 1
FIRMS
400m
120m
80m 100m
oom
R90m
GOVERNMENT
FINANCIAL
FOREIGN
SECTOR
SECTOR
50m
som
220m
100m
HOUSEHOLDS
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