--%>
Assignment Help - homework help

Circular flow of Income

Elucidate the circular flow of Income in two sector model.

Answer: There are just two sectors namely: Firms and households. Households give factor services to the firms and firms employ factor services from households. Household spend their whole income on consumption of services and goods and firms sell their whole goods to the households.

   Related Questions in Microeconomics

  • Q : Making error of omission Numerous big

    Numerous big publishing companies refused to publish a horror novel since the author was nameless. The author ultimately found a small publishing house to publish his book. The book sold millions of copies and produced hundreds of thousands of dollars in total revenue

    		•
  • Q : Problem on equilibrium market price I

    I have a problem in economics on equilibrium market price. Please help me in the following question. The equilibrium market price subsists only if: (1) Quantity demanded equivalents the quantity supplied. (2) Surpluses exceed the shortages. (3) Expert

    		•
  • Q : Monopsonistic exploitation- contracts

    The labor union contracts, a comparable worth rule, or minimum salary laws might boost up equilibrium employment when a firm has been practicing: (v) Price discrimination. (w) Monopolistic exploitation. (x) Feather-bedding. (y) Blacklisting. (z) Monopsonistic exploita

    		•
  • Q : Percentage change in the real price

    Table describe the average retail price of milk and the Consumer Price Index during 1980 to 1998. Determine percentage change in the real price (1980 dollars) from 1990 to 1995?       

    		•
  • Q : Profit maximizing strategy Prohibition

    Prohibition Corporation would exactly break-even on its St. Valentine’s Day software when, in place of correctly identifying its profit maximizing strategy, this: (1) operated at point i, charging just $20 per copy and producing

    		•
  • Q : Resources flowing toward industries in

    Resources tend to flow toward industries in the long run along with: (w) lower profits for typical firms. (x) more profit for typical firms. (y) lower payments to most resource owners. (z) more stable rates of technological change.

    Q : Deter entry from potential competitors

    A firm along with important market power which builds an additional plant to increase excess capacity may be trying to as: (w) ignore a depletion of inventory. (x) deter entry from potential competitors. (y) increase demand and thus raise price and pr

    		•
  • Q : Problem on siyazama production

    The table below  contains information about  the production possibilities frontier ( PPF or PPC)  of siyazama agricultural cooperative.

  • Q : Applied Writing must use graphs to

    must use graphs to demonstrate/support answers where available. Submission is to be made tonight, so needs to be finished urgently

    		•
  • Q : Theory of production and cost in long

    In the theory of cost and production, the long run is the period: (i) Of 1-year or longer. (ii) Of 5-years or longer. (iii) In which we all are dead. (iv) Permitting the capacity to wholly adjust. Can someone pleas

    		•