In the circular-flow diagram, which of the following represents a factor market transaction? A) purchase of a new t.v. B) Expenditure on a new pair of pants. C) Payment for a haircut. D) Payment for raw materieals in the production of bikes.

In the circular-flow diagram, which of the following represents a factor market transaction? A) purchase of a new t.v. B) Expenditure on a new pair of pants. C) Payment for a haircut. D) Payment for raw materieals in the production of bikes.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 2CQQ

See similar textbooks

Related questions

Q: There are two kinds of markets in circular flow diagram in economics These are product markets and…

A: When dealing with the circular flow model, one can see two types of markets such as product market…

Q: Draw a Circular-Flow diagram. Identify the parts of the model that correspond to flow of goods and…

Q: For each of the following activities, identify the flow of dollars as either household-to-firm or…

A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question…

Q: What is the importance of the circular-flow diagram?

A: Answer to the question is as follows:

Q: What are the characteristics of factors of production Only three characteristics

A: According to the given question The factors of production are also known as the productive resources…

Q: In the simple-circular flow diagram, the flow of money from the firms to the markets for factors of…

A: Circular flow diagram is a model that shows how money flows among households and firms through…

Q: Within the simple circular-flow model, what do firms buy from households? O goods and services…

A: In a simple circular flow model, there are two sectors exchanging goods and services, and factor…

Q: Using the basic circular flow model, explain whythe value of businesses’ output of goods andservices…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: In the simple circular-flow diagram, who buys the factors of production

A: A simple circular flow diagram represents how dollars, inputs, outputs flow through the markets. The…

Q: The image below represents the circular flow model. Click on the letter (A, B, C, or D) identifying…

A: The circle flow when there are firms and households are interacting with each other. This…

Q: Economy can be represented by economic models. One of the models we use to understand economy is a…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Sirius XM acquired Pandora, was this about scope or scale economies? How does economies of scale and…

A: Sirius XM and Pandora are both broadcasting companies, they both stream music, provide a large…

Q: During the 1980s, 1990s, and the first decade of the 20th century, the United States experienced a…

A: The markets of various factors are interrelated. Change in one affects the other.…

Q: F B Consumer Goods D Capital Goods A,

A: Answer - Shift in the curve from AB to EF.

Q: Question b The output level on a AD/AS graph when all factors of production are being used is called…

A: The link between the total quantity of production demanded (measured in real GDP) and the price…

Q: What is meant by the cost of living? Describe the cost of living in the state of New Jersey.

A: Cost of living can be explained as the money required for the expenses incurred on the basic…

Q: In the simple circular flow model, Multiple Choice there are real flows of goods, services, and…

A: Circular flow: - a circular flow of income shows the exchange of money, resources, goods and…

Q: In the Circular Flow Model: Resources flow from the firms to the households through the inputs…

A: The ‘circular flow model’ shows how money flows in society. Money goes from producers to workers as…

Q: Draw a circular flow diagrm. Identify the parts of model that corresponds to flow of goods and…

A: The circular-flow diagram (or circular-flow model) is a graphical representation of the movement of…

Q: In the simple circular-flow diagram, markets consist of: Select one: O a. the market for goods and…

A: Macroeconomics analyzes the economy as a whole. It studies the aggregate economic concepts such as…

Q: What is differance between three sector ecnomoy and four sector ecnomoy

A: The three-sector economy involves three sectors namely: households business, and government .The…

Q: For each blank place either an “I” if the scenario is an intermediate good, or an “F” if it is a…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: In the circular-flow diagram, which of the following do firms NOT do? a. use factors of production…

A: In the circular-flow diagram, the following are done by the firms :a)The firm uses factors of…

Q: In what ways does franchising contribute to an overall economy?

A: Franchising is a process of marketing and distributing products where the owner of the business that…

Q: In the circular-flow diagram households receive money for ______ in the ______ market?

A: A circular flow diagram shows that how goods, services, and income move through the economy. In a 2…

Q: Part A: Give a specific example of something a household would buy or sell in the product market.…

A: Product market: It is the place to sale and purchase goods & services. Factor market: It is a…

Q: 1. Draw a circular-flow diagram. Identify the parts of the model that correspond to the flow of…

A: Circular flow: The circular flow explains the process that determines the national income and…

Q: The following diagram presents a circular flow model of a simple economy. The outer set of arrows…

A: A circular flow diagram shows the flow of goods and services between different sectors of an…

Q: Draw a circular-flow diagram. Identify the parts of the model that correspond to the flow of goods…

A: The circular flow diagram representing flow of goods and services and flow of factors of production…

Q: a)Distinguish between investment and capital, b) Explain the difference between an invention and an…

A: The economic activities and several other options of an economy are based upon certain components…

Q: How to classify goods as consumption goods and capital goods? Is there any specific way to do so?

A: If the good is capable of satisfying the human wants directly then it is referred to be as…

Q: FIGURE 2-3 E F Consumption Goods Refer to Figure 2-3. Which of the following movements will result…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Explain with the help of a diagram the circular flow of income. Identity the parts of the model that…

A: The circular flow of income help understands the flows of activities such as the production of goods…

Q: Consider the figure below, what does these point A, B, D, E, and G shows? Explain these points…

A: This is an example of the production possibility frontier. PPF shows the different combinations of…

Q: Explain the circular flow diagram

A: Circular flow diagram:- It refers to the graphical representation of flow of goods or services and…

Q: circular-flow model of a simple economy. The outer set of shows the corresponding flow of inputs and…

A: There are different types of sector model such as 2-sector model, 3-sector model, 4-sector model. In…

Q: Draw the circular flow diagram of 4 main components (Agents) of macroeconomics and clearly show the…

A: Macroeconomics analyzes the economy as a whole. It studies the aggregate economic concepts such as…

Q: conomy can be represented by economic models. One of the models we use to understand economy is a…

A: Circular-flow of income The circular flow or circular-flow of income is a model of the economy in…

Q: Illustrate using the circular flow model how resources are utilized by household and the business…

A: Circular flow: - a circular flow of income shows the exchange of money, resources, goods, and…

Q: Which section of the Circular Flow Model does Walmart belong to? Households Product Markets Factor…

A: Circular flow model shows the money flow in the economy.

Q: In the simple circular-flow diagram, a. households own the factors of production. b. households…

Q: The following diagram presents a circular-flow model of a simple economy. The outer set of arrows…

A: Circular flow of income shows flow of goods and services and products between households and firms.

Q: The outer flow in the circular flow diagram is measured in O goods and services produced O inputs…

A: In economics, the circular flow model is used to explain the relationship between three markets such…

Q: Draw a circular-flow diagram for a four-sector economy. Identify the each part of the model that…

A: We explain the concept of circular flow of income using the following digram.

Question

In the circular-flow diagram, which of the following represents a factor market transaction?

A) purchase of a new t.v.

B) Expenditure on a new pair of pants.

C) Payment for a haircut.

D) Payment for raw materieals in the production of bikes.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

You have exams in economics and chemistry coming up and 5 hours available for studying. The following table shows the trade-offs you face in allocating the time you will spend in studying each subject. 99- 97- Hours Spent Studying Choice Economics Chemistry Economics Chemistry Midterm Score 95- 93 98 75 91- B 4. 1. 95 82 3 92 88 89 87 82 92 94 D 87- E 4 F 5 75 95 83- Use the multipoint curve drawing tool to plot a production possibilities frontier showing the trade-off between your economics grade and chemistry grade. Plot all choices A through F. Properly label this curve. Carefully follow the instructions above, and only draw the required objects. 81- 79- 77- 75 75 77 79 81 83 85 87 80 01 93 05 97 99 Score on chemistry exam After plotting the final point of your multipoint curve, press the Esc key or use a long press on the last point to end the line. Score on economics exam
What is the implication of a new technological change in the production on consumer.
a) Can you identify and explain your family’s interaction in the market for factors of production and your family’s interaction in the market for goods and services. b) Economy can be represented by economic models. One of the models we use to understand economy is a “Circular Flow Diagram”. Sketch a Circular flow model and explain the flow of money and flow of goods and services and factors of production caused by the following activities. i. Kaleem pays a shopkeeper Rs.150 for a liter of milk. ii. Mustaqeem while working at a fast-food restaurant earns Rs.500 per hour. iii. Sana spends Rs.500 on a haircut. iv. Mustafa receives Rs.200,000 from his 10 percent ownership of Salman Chemicals Ltd.
What is economic region of production? Describe with diagram.
Why would you rather use real variables in an economic analysis
What are the characteristics of factors of production Only three characteristics
Everything is made up of the four factors of production. Look at the shirt you have on right now. List the four factors of production and give a specific example of each which might have been used in the production of your shirt. You have to be specific with each factor. You cannot say "resources" or "land".
a. Explain the following statement : "Surely, as you begin this course, you recognize that time is one of the scarcest resources of all. Your primary decision problem is to allocate a scarce resource -time- to achieve a goal-such as mastering the subject matter or earning an A in the course."
Discuss ONE idea from the course so far that you find most interesting and actually useful in real life subject :- Microeconomic This is just a disscussion
After reviewing major/relevant material in microeconomics, your group has begun brainstorming the possible topics that you would like to do. 1. Find two different dependent variables that you would like to explain and 2. Find at least three independent variables that can help you to explain. 3. What the possible economic theories/concepts/graphs that support your choice of the variables are. Note: this task pertains to microeconomics concepts.
Answer with graph and analysis Macroeconomics
In the circular-flow diagram, which of the following do firms NOT do? a. use factors of production to produce output b. produce goods and services c. hire workers d. produce factors of production