Define the circular flow diagram, Microeconomics

Assignment Help:

The circular flow diagram is used to represent the interdependence that exists between sectors of the economy.  The diagram illustrates that there are various collections of same economic agents, called sectors.  Households provide resources to government and business and consume the outputs of these other sectors.  The markets in which land, labor, capital, and entrepreneurial talent are sold are known as resource markets.  The markets in which the output of business and in similar cases government is sold are known as product markets.

 

 


Related Discussions:- Define the circular flow diagram

Discussion perfectly competitive firm, Explain why a perfectly competitive ...

Explain why a perfectly competitive firm does not expand its sales without limit if its horizontal demand curve indicates that it can sell as much as it desires at the current mark

How can we identify that something is elastic or inelastic, How can we iden...

How can we identify that something is elastic or inelastic?  When demand of any commodity does not change with the change in price of that commodity that item is said by inelas

Advantages of division of labour, Advantages of Division of labour: Di...

Advantages of Division of labour: Division of labour has advantages including the following: Development of Greater Skill by the Worker In division of labour, each

Financial market, Explain the effect of increased money supply on bond pric...

Explain the effect of increased money supply on bond prices

Elasticity of demand, the price of a laptop increases by 20% and there is a...

the price of a laptop increases by 20% and there is a 40% drop in the quantity demanded

Describe the different views on development, Problem 1: (a) Explain the...

Problem 1: (a) Explain the common set of problems that developing countries usually face. (b) In your opinion, which of the problems described in part (a), are more signifi

Isoquant, definition of abnormal isoquant and normal isoquant

definition of abnormal isoquant and normal isoquant

Exchange rate, if a country is managing its exchange rate what will do to c...

if a country is managing its exchange rate what will do to counteract the effect of stock market bubble in this country? explain what central bank will do and show in supply and de

Market Power, Which of the following is evidence of market power? a. Output...

Which of the following is evidence of market power? a. Output is fixed despite cost changes b. Optimal Output is less than industry output c. Output changes as cost changes

Write Your Message!

Captcha
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