Lets put a dollar amounts on the flows in the circular flow diagram.
a) suppose that businesses buy total of $ 130 billion of the four resources ( labor,land,capital, and entrepreneurial ability) from households. If households receive $ 72 billion in wages, $ 16 billion in rent, and $ 26 billion in interest, how much are households paid for providing entrepreneurial ability?
b) if household spend $ 70 billion on goods and $ 60 billion on services, how much in revenues do businesses receive in the product market?