Discuss the circular flow model
1. Using a Production Possibility Curve' explain the concept of Scarcity and Opportunity Cost.
2. Discuss the circular flow model in detail. Illustrate your answer by drawing schematic representations.
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Fogelberg Company purchased equipment for $15,000. Sales tax on the purchase was $900. Other costs incurred were freight charges of $240, repairs of $420 for damage during installation, and installation costs of $270. What is the cost of the equip
Using a Production Possibility Curve' explain the concept of Scarcity and Opportunity Cost. Discuss the circular flow model in detail. Illustrate your answer by drawing schematic representations.
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