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

Distinguish between interventionist and market-led strategy, Distinguish be...

Distinguish between interventionist and market-led strategies of development. Explanation of interventionist strategy; heavy government involvement in the planning of output, p

Indifference curve analysis, You are a commuter student at a local universi...

You are a commuter student at a local university. Because of the steep rise in gasoline prices, your parents decide to give you enough additional weekly cash so that you can affor

Monopsony, Monopsony: Demonstrate (with a graph) how a ...

Monopsony: Demonstrate (with a graph) how a minimum wage can increase both the wage and employment in a monopsony market even when the government sets th

Microeconomics, when the demand function is 2Q-24+3P=0,find the marginal re...

when the demand function is 2Q-24+3P=0,find the marginal revenue when Q=3.

Theory of inter-temporal consumption, THEORY OF INTER-TEMPORAL CONSUMPTION:...

THEORY OF INTER-TEMPORAL CONSUMPTION: In the previous two units, we have been concerned with choices among contemporaneous commodities. An important class of choices made by c

Home work, how do minimum units cost change with changes in fixed cost

how do minimum units cost change with changes in fixed cost

Loanable funds and supply of loanable funds, Another school of thought deve...

Another school of thought developed what is called loanable funds theory of interest. Among the principle economists who contributed to the development of loanable funds theory men

Calculate the profit maximising price, Question: (a) Assume a firm ope...

Question: (a) Assume a firm operates in one location but serves on two distinct markets, namely, 1 and 2. The demand functions are: Market 1: P1 = 40 - 0.3 Q1 Market 2:

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