Revenues do businesses receive in the product marketplace

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Reference no: EM1320558

Q. Let's put dollar amounts on the flows in the circular flow diagram of

a. Assume that businesses buy a total of $100 billion of the four resources (labor, land, capital also entrepreneurial ability) from households. If households receive $60 billion in wages, $10 billion in rent also $20 billion in interest, Elucidate how much are households paid for providing entrepreneurial ability?

b. If households spend $55 billion on goods also $45 billion on services, Elucidate how much in revenues do businesses receive in the product marketplace?

Reference no: EM1320558

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