Why could the argument be made that the basic economic problems of scarcity and choice are faced by every society? Scarcity and choice are basic economic problems in every society because all people, regardless of economic status, have unlimited wants, but resources are limited.
Q. What conclusion can be made about the US economy by examining the chart?
The correct answer would be A. As shown in the chart, product markets, individuals, factor markets, and businesses are all interconnected within the American economy.
Table of Contents
- Q. What conclusion can be made about the US economy by examining the chart?
- Q. What conclusion can be made about the US economy by examining the circular flow diagram?
- Q. Where do individuals sell their labor?
- Q. Where do individuals spend the income they earn?
- Q. Are households or businesses the sellers of final products?
- Q. How do households contribute to the economy?
- Q. What is the highest level of government and where is it located?
Q. What conclusion can be made about the US economy by examining the circular flow diagram?
What conclusion can be made about the U.S. economy by examining this chart? A) All aspects of the economy are related. According to this diagram showing the circular flow of goods and resources, where do individuals spend the income they earn?
Q. Where do individuals sell their labor?
Households sell their labor as workers to firms in return for wages, salaries and benefits. This is shown in the inner circle and represents the two sides of the labor market in which households supply and firms demand.
Q. Where do individuals spend the income they earn?
Answer: Individuals spend the income they earn in the Product Market. Individuals provide land, labor, capital and entrepreneurs in the factor market and earn income from business in the factor market. The business purchase factors of production form the factor market and produce goods and services.
Q. Are households or businesses the sellers of final products?
households are sellers of final products. there are real flows of goods, services, and resources, but not money flows. businesses are sellers of final products.
Q. How do households contribute to the economy?
Households sell land, labor, capital, and entrepreneurial activity in exchange for money, which in this case is called income. Households are buyers in the market for goods and services. Households exchange income for goods and services. Businesses are sellers in the market for goods and services.
Q. What is the highest level of government and where is it located?
The central and highest level of government in the United States, the federal government, is divided into three branches. These are the legislative, the executive and the judicial branches.
