The circular flow of income and output. Concept Information : Circular flow of income and output describes the flow of income from firms to the households and output from firms and government to the households.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 8, Problem 8.1LO

To determine

:

The circular flow of income and output.

Concept Information:

Circular flow of income and output describes the flow of income from firms to the households and output from firms and government to the households.

Expert Solution & Answer

Explanation of Solution

Answer:

Circular flow of income and output shows how income and output are distributed between different sectors of the economy. The circular flow of income is also used to calculate the national income of a country.

Two-sector economy:

In a two sector economy, the households supply factors of production to the firms and receive factor payments in return of their services. The firms in turn supplies goods and services to the households and receive payments in return.

Three-sector economy:

The three sector economy involves the Households, Firms and the Government sector. Households supply factors of production to the Firms and receive income in return.

Firms use these factors to produce goods and services and supply to the households and government for final consumption. The government sector in turn supplies public goods to the households and make payments to households as factor payments.

Four-sector economy:

The four sector economy involves the Households, Firms, Government and the Rest of the World sector. Households supply factors of production to the Firms and receive factor income in return. Firm use these factors to produce goods and services and supply to the households and government for final consumption.

The government sector in turn supplies public goods to the households and make payments to households as factor payments. While, the rest of the world sector makes factor incomes to the residents of a country working abroad. In addition to this, the rest of the world sector receives factor incomes of the residents of other countries working in our country.

The households and other sectors also save a part of their income in the financial sector. These savings are a leakage out of the income flow while the financial sector provides loans for investments, which are termed as injections into the spending stream.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

please answer the following questions: What is money, and why does anyone want it? Explain the concept of the opportunity cost of holding money . Explain why an increase in U.S. interest rates relative to UK interest rates would affect the U.S.-UK exchange rate. Suppose that a person’s wealth is $50,000 and that her yearlyincome is $60,000. Also suppose that her money demand functionis given by Md = $Y10.35 - i2Derive the demand for bonds. Suppose the interest rate increases by 10 percentage points. What is the effect on her demand for bonds?b. What are the effects of an increase in income on her demand for money and her demand for bonds? Explain in words

Driving Quiz X My Course G city place w x D2L Login - Univ X D2L Login - Univ x D2L Login - U acmillanlearning.com/ihub/assessment/f188d950-dd73-11e0-9572-0800200c9a66/4db68a5e-69bb-4767-8d6c-a12d +1687 pts /1800 © Macmillan Learning Question 6 of 18 > The graph shows the average total cost (ATC) curve, the marginal cost (MC) curve, the average variable cost (AVC) curve, and the marginal revenue (MR) curve (which is also the market price) for a perfectly competitive firm that produces terrible towels. Answer the three questions, assuming that the firm is profit-maximizing and does not shut down in the short run. What is the firm's total revenue? S What is the firm's total cost? $ What is the firm's profit? (Enter a negative number for a loss.) $ Price $320 $300 $200 $150 205 260 336 365 Quantity MC ATC AVC MR=P

1. Suppose that the two nations face the following benefits of pollution, B, and costs of abatement, C: BN = 10, Bs = 7; CN = 5, Cs = 4. Further assume that if the nation chooses to abate pollution, it still receives the benefits of pollution but now must pay the cost of abatement as well. a. Identify the payoffs that accrue to each nation under the four different possible outcomes of the game and present these payoffs in the normal form of the game. b. Recall that the term dominant strategy defines the condition that a player in a game would prefer to play that strategy (in this case either pollute or abate) regardless of the strategy chosen by the other player in the game. Does either nation have a dominant strategy in this game? If so, what is it? c. Identify the Nash equilibria, or non-cooperative equilibria, of this game.

Answer 2

Question

Chapter 8, Problem 8.1LO

To determine

:

The circular flow of income and output.

Concept Information:

Circular flow of income and output describes the flow of income from firms to the households and output from firms and government to the households.

Expert Solution & Answer

Explanation of Solution

Answer:

Circular flow of income and output shows how income and output are distributed between different sectors of the economy. The circular flow of income is also used to calculate the national income of a country.

Two-sector economy:

In a two sector economy, the households supply factors of production to the firms and receive factor payments in return of their services. The firms in turn supplies goods and services to the households and receive payments in return.

Three-sector economy:

The three sector economy involves the Households, Firms and the Government sector. Households supply factors of production to the Firms and receive income in return.

Firms use these factors to produce goods and services and supply to the households and government for final consumption. The government sector in turn supplies public goods to the households and make payments to households as factor payments.

Four-sector economy:

The four sector economy involves the Households, Firms, Government and the Rest of the World sector. Households supply factors of production to the Firms and receive factor income in return. Firm use these factors to produce goods and services and supply to the households and government for final consumption.

The government sector in turn supplies public goods to the households and make payments to households as factor payments. While, the rest of the world sector makes factor incomes to the residents of a country working abroad. In addition to this, the rest of the world sector receives factor incomes of the residents of other countries working in our country.

The households and other sectors also save a part of their income in the financial sector. These savings are a leakage out of the income flow while the financial sector provides loans for investments, which are termed as injections into the spending stream.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 8, Problem 8.1LO

To determine

:

The circular flow of income and output.

Concept Information:

Circular flow of income and output describes the flow of income from firms to the households and output from firms and government to the households.

Expert Solution & Answer

Explanation of Solution

Answer:

Circular flow of income and output shows how income and output are distributed between different sectors of the economy. The circular flow of income is also used to calculate the national income of a country.

Two-sector economy:

In a two sector economy, the households supply factors of production to the firms and receive factor payments in return of their services. The firms in turn supplies goods and services to the households and receive payments in return.

Three-sector economy:

The three sector economy involves the Households, Firms and the Government sector. Households supply factors of production to the Firms and receive income in return.

Firms use these factors to produce goods and services and supply to the households and government for final consumption. The government sector in turn supplies public goods to the households and make payments to households as factor payments.

Four-sector economy:

The four sector economy involves the Households, Firms, Government and the Rest of the World sector. Households supply factors of production to the Firms and receive factor income in return. Firm use these factors to produce goods and services and supply to the households and government for final consumption.

The government sector in turn supplies public goods to the households and make payments to households as factor payments. While, the rest of the world sector makes factor incomes to the residents of a country working abroad. In addition to this, the rest of the world sector receives factor incomes of the residents of other countries working in our country.

The households and other sectors also save a part of their income in the financial sector. These savings are a leakage out of the income flow while the financial sector provides loans for investments, which are termed as injections into the spending stream.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 8, Problem 8.1LO

To determine

:

The circular flow of income and output.

Concept Information:

Circular flow of income and output describes the flow of income from firms to the households and output from firms and government to the households.

Expert Solution & Answer

Explanation of Solution

Answer:

Circular flow of income and output shows how income and output are distributed between different sectors of the economy. The circular flow of income is also used to calculate the national income of a country.

Two-sector economy:

In a two sector economy, the households supply factors of production to the firms and receive factor payments in return of their services. The firms in turn supplies goods and services to the households and receive payments in return.

Three-sector economy:

The three sector economy involves the Households, Firms and the Government sector. Households supply factors of production to the Firms and receive income in return.

Firms use these factors to produce goods and services and supply to the households and government for final consumption. The government sector in turn supplies public goods to the households and make payments to households as factor payments.

Four-sector economy:

The four sector economy involves the Households, Firms, Government and the Rest of the World sector. Households supply factors of production to the Firms and receive factor income in return. Firm use these factors to produce goods and services and supply to the households and government for final consumption.

The government sector in turn supplies public goods to the households and make payments to households as factor payments. While, the rest of the world sector makes factor incomes to the residents of a country working abroad. In addition to this, the rest of the world sector receives factor incomes of the residents of other countries working in our country.

The households and other sectors also save a part of their income in the financial sector. These savings are a leakage out of the income flow while the financial sector provides loans for investments, which are termed as injections into the spending stream.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 8, Problem 8.1LO

To determine

:

The circular flow of income and output.

Concept Information:

Circular flow of income and output describes the flow of income from firms to the households and output from firms and government to the households.

Expert Solution & Answer

Explanation of Solution

Answer:

Circular flow of income and output shows how income and output are distributed between different sectors of the economy. The circular flow of income is also used to calculate the national income of a country.

Two-sector economy:

In a two sector economy, the households supply factors of production to the firms and receive factor payments in return of their services. The firms in turn supplies goods and services to the households and receive payments in return.

Three-sector economy:

The three sector economy involves the Households, Firms and the Government sector. Households supply factors of production to the Firms and receive income in return.

Firms use these factors to produce goods and services and supply to the households and government for final consumption. The government sector in turn supplies public goods to the households and make payments to households as factor payments.

Four-sector economy:

The four sector economy involves the Households, Firms, Government and the Rest of the World sector. Households supply factors of production to the Firms and receive factor income in return. Firm use these factors to produce goods and services and supply to the households and government for final consumption.

The government sector in turn supplies public goods to the households and make payments to households as factor payments. While, the rest of the world sector makes factor incomes to the residents of a country working abroad. In addition to this, the rest of the world sector receives factor incomes of the residents of other countries working in our country.

The households and other sectors also save a part of their income in the financial sector. These savings are a leakage out of the income flow while the financial sector provides loans for investments, which are termed as injections into the spending stream.

Answer 6

Chapter 8, Problem 8.1LO

To determine

:

The circular flow of income and output.

Concept Information:

Circular flow of income and output describes the flow of income from firms to the households and output from firms and government to the households.

Expert Solution & Answer

Explanation of Solution

Answer:

Circular flow of income and output shows how income and output are distributed between different sectors of the economy. The circular flow of income is also used to calculate the national income of a country.

Two-sector economy:

In a two sector economy, the households supply factors of production to the firms and receive factor payments in return of their services. The firms in turn supplies goods and services to the households and receive payments in return.

Three-sector economy:

The three sector economy involves the Households, Firms and the Government sector. Households supply factors of production to the Firms and receive income in return.

Firms use these factors to produce goods and services and supply to the households and government for final consumption. The government sector in turn supplies public goods to the households and make payments to households as factor payments.

Four-sector economy:

The four sector economy involves the Households, Firms, Government and the Rest of the World sector. Households supply factors of production to the Firms and receive factor income in return. Firm use these factors to produce goods and services and supply to the households and government for final consumption.

The government sector in turn supplies public goods to the households and make payments to households as factor payments. While, the rest of the world sector makes factor incomes to the residents of a country working abroad. In addition to this, the rest of the world sector receives factor incomes of the residents of other countries working in our country.

The households and other sectors also save a part of their income in the financial sector. These savings are a leakage out of the income flow while the financial sector provides loans for investments, which are termed as injections into the spending stream.

Answer 7

Chapter 8, Problem 8.1LO

To determine

:

The circular flow of income and output.

Concept Information:

Circular flow of income and output describes the flow of income from firms to the households and output from firms and government to the households.

Answer 8

Expert Solution & Answer

Explanation of Solution

Answer:

Circular flow of income and output shows how income and output are distributed between different sectors of the economy. The circular flow of income is also used to calculate the national income of a country.

Two-sector economy:

In a two sector economy, the households supply factors of production to the firms and receive factor payments in return of their services. The firms in turn supplies goods and services to the households and receive payments in return.

Three-sector economy:

The three sector economy involves the Households, Firms and the Government sector. Households supply factors of production to the Firms and receive income in return.

Firms use these factors to produce goods and services and supply to the households and government for final consumption. The government sector in turn supplies public goods to the households and make payments to households as factor payments.

Four-sector economy:

The four sector economy involves the Households, Firms, Government and the Rest of the World sector. Households supply factors of production to the Firms and receive factor income in return. Firm use these factors to produce goods and services and supply to the households and government for final consumption.

The government sector in turn supplies public goods to the households and make payments to households as factor payments. While, the rest of the world sector makes factor incomes to the residents of a country working abroad. In addition to this, the rest of the world sector receives factor incomes of the residents of other countries working in our country.

The households and other sectors also save a part of their income in the financial sector. These savings are a leakage out of the income flow while the financial sector provides loans for investments, which are termed as injections into the spending stream.