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Morgarella [4.7K]
3 years ago
5

Distinguish between the resource market and product market in the circular flow model. In what way are businesses and households

both sellers and buyers in this model? What are the flows in the circular flow model?
The resource markets are where the owners of the resources (the households) sell their resources to the buyers of the resources (businesses). In the product markets, businesses sell the goods and services they have produced to the buyers of the goods and services, the households.

Households (individuals) either own all economic resources directly or own them indirectly through their ownership of business corporations. These households are willing to sell their resources to businesses because attractive prices draw them into specific resource markets. Businesses buy resources because they are necessary for producing goods and services. The interaction of the buyers and sellers establishes the price of each resource.

In the product market, businesses are the sellers and householders are the buyers; their role in the market has been reversed. Each group of economic units both buys and sells.

One flow is the flow of real goods and services (including resource services) and the other flow is the flow of money (money income, consumption expenditures, revenue, production costs).
Business
1 answer:
Firlakuza [10]3 years ago
6 0

Answer:

Resource Market : <u>Sellers (households)</u> sell factors of production to <u>buyers (businesses)</u>, in return of factor incomes.  

Product Market : <u>Sellers (businesses)</u> sell goods & services to <u>buyers (households)</u>, in return of price expenditure for goods & services.

Explanation:

Circular flow of Income is flow of payments & receipts for goods, services & factor services between sectors (firms & households) of economy.

Households sell factors of productions i.e land, labour, capital, entrepreneur to buyers businesses . They get factor incomes i.e rent, wages, interest, profit in return from them .

Businesses sell goods & services to buyers households. Households spend factor incomes earned from supplying production factors, in paying prices for those goods & services.

Product Market : Involves flow of factor services, final products & services - from households to firms, from firms to households respectively.

Money Market : Involves flow of monetary factor payments, prices expenditure- from firms to households, from households to firms respectively

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What does it mean if a company has a debt ratio of 101.5%?
7nadin3 [17]

Explanation:

Debt ratio is basically the ratio between the total debts and the total assets of a company. It shows the percentage of total debts of the company in accordance or in comparison of the total assets. If the debt ratio is high, it means the company has more liabilities than the assets. Higher debt ratio may lead a company towards default.

In this question, 101.5% debt ratio means the total liabilities of the company are 1.5% more than the total assets of the company. This shows that the company's debt ratio is high. Liabilities are more than the assets. In this situation, a company is considered at a risk if precautionary measures are not taken immediately.

6 0
3 years ago
Country A would have an absolute advantage compared to Country B in the production of corn if
viva [34]

Answer:

B) Country A uses fewer resources to produce corn than Country B does.

Explanation:

An absolute advantage is a situation where a country or a company can produce some goods and services using fewer inputs compared to competitors. The company can produce more quantity of using the same amount of inputs than others.  A country with an absolute advantage will manufacture a product at a lower cost than other countries or companies.  

Absolute advantage enables companies and countries to gain from trade. Through specialization, a company will focus on what it can produce at a lower cost than others, and sell it. Country A has an absolute advantage if it can produce corn at a lower cost than country B.

6 0
3 years ago
Show your work and explain in a full sentence how 4 2-6 is equivalent to 3 8-6.
klemol [59]

Answer:

4\frac{2}{6} = 3\frac{8}{6} = \frac{26}{6}

Explanation:

Given

4\frac{2}{6} and 3\frac{8}{6}

Required

Show that they are equivalent

To do this, we simply convert both fractions to either decimal or improper fraction

Using improper fraction

4\frac{2}{6} = \frac{6 * 4 + 2}{6}

4\frac{2}{6} = \frac{24 + 2}{6}

4\frac{2}{6} = \frac{26}{6}

3\frac{8}{6} = \frac{6 *3+8}{6}

3\frac{8}{6} = \frac{18+8}{6}

3\frac{8}{6} = \frac{26}{6}

After converting both to improper fraction, we have:

4\frac{2}{6} = 3\frac{8}{6} = \frac{26}{6}

<em>Hence, both are equivalent</em>

3 0
3 years ago
Macroeconomists are like scientists because they both:
Masteriza [31]

Answer: 1) collect data, develop hypotheses, and analyze the results.

Explanation:

Scientist are the professional who work in physical science or natural scientist field to gather information ,creates hypothesis for testing or experimentation to know about the actual outcome.

Macroeconomic is the field where overall economy is studied and analyzed to generate studied supposition .From created theory, evaluation of phenomena is done.

Other options are incorrect because unlimited usage of controlled experiment, relying on analyze data nd designing data are not the measure taken by scientist of macroeconomic field .Thus, the correct option is option (1).

8 0
3 years ago
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seraphim [82]

Answer:

2. business unit

Explanation:

The business-level unit strategy refers to the strategy that mainly focused on the company products and the services that would be provided to the customers with the aim of gaining maximum profit, competitive advantage so that the company goals and the objectives could be accomplished.  

Offering them better products and services create the long term relation with the customer that would result in a sustainable competitive advantage so that it could create a standardized position in a market

8 0
3 years ago
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