Question

Explain the Circular Flow of Income and how can the circular flow enhanced?

Explain the Circular Flow of Income and how can the circular flow enhanced?

Homework Answers

Answer #1

The factor owners spend this income on goods which leads to a circular flow of income. ... The circular flow of income shows the flow of money from economic activity between households and firms. Households receive payments for their services (income) and use this money to buy the output of firms (consumption).

Circular flow of income can be increased with exports , consumption. The reason is that they are injections in circular flow of income and main equality in consumption and production

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1.      Circular Flow Model: Explain and apply the simplified circular flow model used in economics.
1.      Circular Flow Model: Explain and apply the simplified circular flow model used in economics.
2. Draw the circular flow complete with all leakages and injections. Explain how the leakages get...
2. Draw the circular flow complete with all leakages and injections. Explain how the leakages get injected back into the economy.
Discuss how microeconomics and macroeconomics affect the flow of money within the Circular Flow Model. Do...
Discuss how microeconomics and macroeconomics affect the flow of money within the Circular Flow Model. Do you think firms could operate without households? Describe how these disciplines relate to the Circular Flow Model.
1. how can transcription at a particular locus be enhanced rather than recruiting RNA pil and...
1. how can transcription at a particular locus be enhanced rather than recruiting RNA pil and its transcription factors? 2. Does the coding region methylated? 3. What are the experiments to determine the histone modification and explain how they does. 4. How can DNa methylation be experimentally determined? Help for the questions thank you!!
This is great depiction of the circular flow and how it all comes together. Can you...
This is great depiction of the circular flow and how it all comes together. Can you think of a firm in particular and apply it to the model? In my post above I used to the restaurant industry and the airline industry to show how heavily they both depend on house holds and how they've struggled different during Covid-19. Do you think there are industries that are less heavily dependent on households? Let me know what you think!
Someone claims that the volume flow rate in a circular pipe with laminar flow can be...
Someone claims that the volume flow rate in a circular pipe with laminar flow can be determined by measuring the velocity near the walls in the fully developed region, multiplying it by the cross-sectional area, and dividing the result by 2. Do you agree? Yes or No?
3. Use the circular flow of income to answer the following question. Assume a consumption function...
3. Use the circular flow of income to answer the following question. Assume a consumption function of the form, C=a+b(Y-T). If the marginal propensity to consume is 9 and the government increases taxes by $200, a. Explain (precisely) what happens to the following variables. a) Public Saving b)Private Saving c) National Saving
In the circular flow diagram, 1) income and spending in the model are never equal. 2)...
In the circular flow diagram, 1) income and spending in the model are never equal. 2) the value of the goods and services produced in the economy and income cannot be the same. 3) the only player is households. 4) income must always equal spending which equals the value of goods and services produced in the economy.
Explain how the customer benefit package is enhanced from the customer’s viewpoint by adding digital content...
Explain how the customer benefit package is enhanced from the customer’s viewpoint by adding digital content to a physical good such as an automobile, cell phone, or appliance? Exactly how is value increased?
Describe how the market system, command system, & circular flow work
Describe how the market system, command system, & circular flow work