ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a household participating in the resource market
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a household participating in the product market
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a government participating in the product market
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a business participating in the resource market
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a business participating the product market
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Detailed explanation-1: -For working at the diner, for example, your income would be wages paid in the form of a paycheck at the end of the month. So, in the market for resources, households sell resources and businesses buy resources. The resources flow one way (counter-clockwise) and money flows the other (clockwise).
Detailed explanation-2: -Factor markets are places where productive resources are bought and sold. This is where workers sell their labor and entrepreneurs look for labor.
Detailed explanation-3: -The circular flow model demonstrates how money moves from producers to households and back again in an endless loop. In an economy, money moves from producers to workers as wages and then back from workers to producers as workers spend money on products and services.
Detailed explanation-4: -In economics, the circular flow diagram represents the organization of an economy in a simple economic model. This diagram contains, households, firms, markets for factors of production, and markets for goods and services.