What is the circular flow diagram, and what does it demonstrate?
What are the two main categories of participants in markets? Which determines in a free market what goods and services are produced?
((Since you have asked multiple question, we will solve the first question for you. If you want any specific question to be solved then please specify the question number or post only that question.)
The economies tend to focus upon the resource allocation, which is done for the scarce resources in the society. Each society gets involved in this allocation, and distribution decision because every society face limited amount of resources.
The economies tend to focus on achieving maximum level of efficiency from the use of these resources. There are various entities, such as the government, consumers, buyers, sellers, and producers who tend to get involved in these economic activities.
Step by step
Solved in 2 steps
