Refer to the figure, which of the following pairs correctly identify W and Y? a. Markets for factors of production and markets for goods and services b. Firms and Households c. Expenditures and Income d. Consumption and Investment
Refer to the figure, which of the following pairs correctly identify W and Y? a. Markets for factors of production and markets for goods and services b. Firms and Households c. Expenditures and Income d. Consumption and Investment
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Refer to the figure, which of the following pairs correctly identify W and Y?
a. Markets for factors of production and markets for goods and services
b. Firms and Households
c. Expenditures and Income
d. Consumption and Investment

Transcribed Image Text:W
C
N
X
M
Y
B
Expert Solution

Step 1
The figure given to us is representing circular flow model which state that it is a income generation cycle that begin from production process then its dispersal among various factor of production and finally circulation from household to firm in form of consumption expenditure on good and service produce by them.
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