The circular flow of economic activity shows the interdependency of firm and household decision making.TrueFalse TRUE
Cached - SimilarYou +1'd this publicly. UndoIn economics, the terms circular flow of income or circular flow refer to a simple economic model which describes the reciprocal circulation of income
It doesn't. The economy will remain stagnent.
The circular flow of economic activity is a model showing the basic economic relationships within a market economy.
False
The circular flow of economic activity shows the interdependency of firm and household decision making.TrueFalse TRUE
Cached - SimilarYou +1'd this publicly. UndoIn economics, the terms circular flow of income or circular flow refer to a simple economic model which describes the reciprocal circulation of income
It doesn't. The economy will remain stagnent.
The circular flow of economic activity is a model showing the basic economic relationships within a market economy.
False
The market is the mechanism that brings together households and firms.
Free Enterprise
Counterclockwise and revenues flow counterclockwise.
The circular flow refers to a simple economic model which describes the reciprocal circulation of income between the consumers and producers. Thanks
[NovaNet] the movement of income from producers of goods and services to consumers, and back to producers. [Study Island] Consumer spending drives demand for goods and services.
The households like to allocate a part of their incomes for future uses. As a result the firms has to dispose all their goods and services that remain unsold. creating a disequilibrium to the flow of the economy.
Circular Flow of Economic Activity