In the circular flow of goods and services what does the product market represent? Boxes C and D of this circular-flow diagram represent. B Ac D. D 36. B c. C d. D ANS: B PTS: 1 DIF: 2 REF: 2-1 TOP: Circular-flow diagram MSC: Interpretive 66. In a closed economy, such as the example to the left, all the spending of households and firms must equal the income received by the factors and goods-and-services markets. A b. Why? Which arrow represents the flow of goods. between economic agents.The flows of money and goods exchanged in a closed circuit correspond in value, but run in the opposite direction. 5 and 6. Why? answered Sep 11, 2019 by LissetteHack . Which Arrow Represents The Flow Of Spending By Households? Q. The figure represents a circular-flow diagram. 71. Resources are in the form of labor, natural resources, capital, and entrepreneurship, all of which are supplied by households. Refer to Figure 2-1. C) business property tax payments. A. the purchase of s Circular flow is generally shown in a circular flow chart or model. The figure represents a circular-flow diagram. Which arrow represents the flow of goods and services? . As an organism is eaten, energy is transferred to the organism that ate it. Refer to Figure 2-1. The arrow marked “C” represents the flow of. B B. Wiki User Answered . businesses purchase what they use to produce goods and services. To which of the arrows does this purchase, Michelle completes her first week of employment working as a hairdresser at a salon. Why? . Report an issue . The circular flow of income or circular flow is a model of the economy in which the major exchanges are represented as flows of money, goods and services, etc. A. A. Which arrow represents the flow of spending by households? Understanding and applying economic models. Which arrow represents the flow of goods and services? On the other hand, finished products flow from firms to households in goods and services markets, and this is represented by the direction of the arrows on the “Finished product” lines. Boxes A and B represent, . However, the factors of production, such as labor, land, and capital flow from the households to the firms to be converted into goods and the services that will be consumed by the households. Flow (1) might represent: A) corporate income tax payments. Wiki User Answered . In the circular flow of goods and services what does the product market represent? To produce goods and services, businesses need to purchase resources from households. answer choices . Top Answer. Economists use a circular flow model to highlight basic fetures of a market economy. she receives her first paycheck. The arrow marked "B" represents the flow of: Click card to see definition 👆. To which of the arrows does this activity contribute directly? The following diagram presents a circular flow model of a simple economy. A B. If households are sellers in the markets represented by Box D. . Why? Homework answers / question archive / The Circular Flow Model of the Economy: a What are the four general categories of economic resources? answer choices . The delivery of finished products for sale in exchange for revenue is represented in which arrows? answer choices . The arrow marked “D” represents the flow of. Refer to Figure 2 1 Which arrow represents the flow of goods and services a A b, 38 out of 41 people found this document helpful. 1. In short, the two arrows on the top represent the goods and services market – the arrow above represents the flow of payments for the goods and services, the arrow below represents the flow of goods and services. goods and services flow . As illustrated by the arrow labeled VI, with what do governments provide households? Tap again to see term 👆. B C. C DD 34. ANS: A 73. 2011-08-26 12:59:42 2011-08-26 12:59:42 . The circular flow in a two-sector economy is depicted in Figure 1 where the flow of money as income payments from the business sector to the household sector is shown in the form of an arrow in the lower portion of the diagram. The fact that the arrows on the money lines and the arrows on the product lines go in opposite directions simply represents the fact that market participants always exchange money for other stuff. c. personal consumption expenditures. Best answer. 30 seconds . Goods and services flow through the economy in one direction while money flows in the opposite direction. Flow (2) might represent: Thicker and darker arrows indicate higher volume (each commodity is scaled relative to the highest volume between any two states, so arrow size isn't comparable across commodities). Select the appropriate labels to complete the circular-flow diagram according to the information given on the diagram. To which of the arrows does this transac-. Refer to Figure 2-1. A. In a closed economy, goods and services are exchanged in product markets and factors of production are exchanged in factor markets. Michelle completes her first week of employment working as a hairdresser at a salon. All individuals in the economy that provide firms with productive resources in … The green arrows represent the flow of payments, and the red arrows represent the flow of goods and services. Which arrow shows the flow of land, labor, and capital? 1 and 2. 2 Marks c Which arrow shows the flow of spending by households? the markets for goods and the markets for services. Flow maps are a type of map used in cartography to show the movement of objects between different areas on the Earth’s surface. What does point A represent on the Circular flow diagram? goods and services flow. a. factors of production. The exchanges made in the economy imply a redistribution of rent according to the diagram, and the creation of value makes the economy grow . This is money flow from households to firm sector. Which arrow represents the flow of spending by households? B. To which of the arrows does this transaction directly con-, Boxes A and B of this circular-flow diagram represent. The movement of income from producers of goods and services to consumers, and back to the producer is known as the circular flow. b. households and government. Flow (2) might represent: Question 34 options: the services of NASA astrophysicists. 0 votes. Which arrow represents the flow of spending by households? Refer to the diagram, in which solid arrows reflect real flows; broken arrows are monetary flows. Tags: Question 9 . The circular flow analysis is the basis of national accounts and hence of macroeconomics. a. arrow A b. arrow B c. arrow C d. arrow D ANS: B PTS: 1 DIF: Average REF: 25 BLM: Higher Order NOT: Micro TB_2-53 54. In the circular flow of money, saving is one of the leakages and investment is an injection. goods and services flow . Refer to Figure 2-1. University of the Fraser Valley • E.Q. The two arrows at the bottom of the diagram (C) similarly represent the factors of production market. answer choices . Which arrow represents the flow of spending by households? If Box A represents firms, then which box. Tags: Question 8 . What does point C represent on the Circular Flow diagram? and services? D) transfer payments to low-income families. (Exhibit: Circular Flow Model) The exhibit shows a simplified circular flow model where only consumption goods are being produced. Chapter 2/Thinking Like an Economisty 45 67. H ow to read it: The arrows represent the origin and destination of goods shipped between states. Why? The circular-flow diagram (or circular-flow model) is a graphical representation of the flows of goods and money between two distinct parts of the economy: -market for goods and services, where households purchase goods and services from firms in exchange for money; Get step-by-step explanations, verified by experts. The arrows 1 to 2 in this diagram represent which aspect of the economy? 3. 65. b Which arrow shows the flow of goods and services? 1 2 3. Which arrow represents the flow of goods. SURVEY . 14. The exchange of money for goods/services to consumers is represented in which part of the circular flow diagram? A B. 1 times. answer explanation . The arrows 1 to 2 in this diagram represent which aspect of the economy? the markets for goods and services and the markets for financial assets. It represents the movement of goods, services, and taxes. Which arrow represents the flow of spending by households? c. factors of production. Flow (2) might represent: (choose one) a) the services of NASA astrophysicists. Money Flow The flow of spending(consumption expenditure) and income(rent, wages, interest, profits). d. the markets for goods and the markets for services. As households and firms pay the government net taxes, money and resources flow outside the model. Boxes C and D represent. In the circular flow of the economy, money is used to purchase goods and services. taxes . Which arrow shows the flow of spending by households? A. Which arrow represents the flow of land, labor, and capital? Which of the following statements about a simple circular flow model is false? the flow of money. Which arrow represents the flow of goods and services? A b. Answer. Based on this simplified model, all these flows involved in it are depicted in the following figure. 7 and 8. . 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