Interactions between households and firms in simple economy

Assignment Help Business Economics
Reference no: EM13852518

Explain briefly the various parts of the circular flow diagram representing the interactions between households and firms in a simple economy.

Reference no: EM13852518

Questions Cloud

What is the firms cost function : Gail works in a flower shop, where she produces 10 floral arrangements per hour. She is paid $10 per hour for the first eight hours she works and $15 an hour for each additional hour she works. What is the firm’s cost function? What are its AC, AVC, ..
Minimum acceptable price to the seller : Jennifer buys a piece of costume jewelry for $33 for which she was willing to pay $42. The minimum acceptable price to the seller, Nathan, was $30. Jennifer experiences:
Kind of returns to scale do production functions exhibit : The BlackBerry production function is Q = 2.83L1.52K0.82. Epple et al. (2010) estimate that the production function for U.S. housing is q = 1.38L0.144M0.856, where L is land and M is an aggregate of all other mobile, non-land factors, which we call m..
Show labor market with a binding minimum wage : Using a supply-demand diagram, show a labor market with a binding minimum wage. Now, use the diagram to show those who are helped by the minimum wage, and those who are hurt by the minimum wage.
Interactions between households and firms in simple economy : Explain briefly the various parts of the circular flow diagram representing the interactions between households and firms in a simple economy.
Money demand is greater than the real money supply : If the real money demand is greater than the real money supply, interest rates must rise to reach equilibrium in the money market as institutions sell bonds to obtain more money. The federal government’s control of the money supply, which influences ..
Total abatement cost for both companies under cost effective : Assume that two power plants, Firm 1 and Firm 2, release arsenic in a small urban community that exceeds the emissions standard. To meet the standard, 40 units of SO2 must be abated in total. The two firms face the following abatement costs: Determin..
Differentiate between the types of torts : Types of Torts- Differentiate between the types of torts and provide an example of a tort that would govern the sale of a faulty product
Velocity ?and aggregate output remain constant : If velocity ?(V) and aggregate output ?(Y) remain constant at $4 and $1,000 billion?, ?respectively, what happens to the price level ?(P) if the money supply? (M) declines from $425 billion to $350 billion?? Originally, what is the price level?

Reviews

Write a Review

Business Economics Questions & Answers

  Held constant when a demand curve for a specific product

What is being held constant when a demand curve for a specific product (shoes or apples, for example) is constructed? Explain why the demand curve for a product slopes downward to the right.

  What policies could enacted to increase total consumption

Again, thinking in terms of marginal propensity to consume, under what circumstances would your tax proposal increase total consumption spending? What other policies could be enacted to increase total consumption spending?

  What occurs when monetary authorities sell government

Which of the following best describes what occurs when monetary authorities sell government securities.

  Prepare the income statement and retained earnings statement

Prepare the income statement and retained earnings statements for the year and the classified balance sheet at August 31.

  Find out the optimal prices, the number of tickets sold

Find out the optimal prices, the number of tickets sold in each area and the seller's profit given that the seller wants to serve all consumers.

  Decrease cost profits by decreasing its number of customers

Billboards cost money to make and don't really seem to significantly benefit anyone other than billboard-makers. A company c putting up billboards presumably increases profits from the resulting increased number of customers, but don't competing busi..

  Difference between macroeconomics and microeconomics

Explain the difference between Macroeconomics and Microeconomics. Also explain how economics is used as a social science and as a policy tool.

  Cause the mpl to increase

Which of the following will not cause the MPL to increase?

  Ease and simplicity of our current technological devices

What are some of the ways that the ease and simplicity of our current technological devices also lead us at times to surrogate our daily responsibilities onto these devices?

  About the elasticity of demand

The elasticity of demand:

  What influence the own price elasticity of demand

Explain why Consumer Preferences may influence the own price elasticity of demand for a commodity.

  Healthcare market to be at an optimal level of output

In a world of completely selfish individuals, if we could measure each person's marginal value for his or her own medical care, what conditions must be met in order for the healthcare market to be at an optimal level of output?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd