« previous next »

Author Question: How do firms and households interact within the context of the circular flow model? What will be ... (Read 100 times)

joesmith1212

  • Hero Member
  • *****
  • Posts: 549
on: Jun 29, 2018
How do firms and households interact within the context of the circular flow model?
 
  What will be an ideal response?

Question 2

In the figure above, when the market is in equilibrium, total consumer surplus on all the CDs bought will be
 
  A) greater than 30 million.
  B) less than at any other price.
  C) 20 million.
  D) less than 15 million.
InMicro ¦ Hubbard, O'Brien ¦ 1st Edition
Buy Test-Bank


abctaiwan

  • Sr. Member
  • ****
  • Posts: 355
Reply #1 on: Jun 29, 2018
Answer to Question 1

Households are the owners of the factors of production. Firms purchase these factors in the factor market. They use these factors to produce goods and services which are sold to households in the goods market. Households are paid for the services of the factors of production and use this income to pay for the goods and services.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

ear model ear model
Standard Model of Elementary Particles Standard Model of Elementary Particles
The Solar Model The Solar Model
Peak flow meter. Peak flow meter.
Structural comparison of human blood vessels and the direction of blood flow through them Structural comparison of human blood vessels and the direction of blood flow through them
The Gene Expression Machine Model for Coupling The Gene Expression Machine Model for Coupling
Video: What Are Carbohydrates? Importance of Carbs & High Carb Food

For a complete list of videos, visit our video library