The economy can be represented by economic models. One of the models we use to understand the economy is a “Circular Flow Diagram”. Sketch a Circular flow model and explain the flow of money and flow of goods and services and factors of production caused by the following activities.Sana spends Rs.500 on a haircut. Mustafa receives Rs.200,000 from his 10 per cent ownership of Salman Chemicals Ltd.

1) Circular flow diagram is a model which represents the flow of money and good and services from…

Answered: The economy can be represented by…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The economy can be represented by economic models. One of the models we use to understand the economy is a “Circular Flow Diagram”. Sketch a Circular flow model and explain the flow of money and flow of goods and services and factors of production caused by the following activities.
Sana spends Rs.500 on a haircut.
Mustafa receives Rs.200,000 from his 10 per cent ownership of Salman Chemicals Ltd.

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