Questions: Refer to the provided figure. If box A represents households, D the resource market, and C businesses, then flow ( 8 ) would represent while flow (7) would represent

Refer to the provided figure. If box A represents households, D the resource market, and C businesses, then flow ( 8 ) would represent while flow (7) would represent
Transcript text: Refer to the provided figure. If box $A$ represents households, $D$ the resource market, and $C$ businesses, then flow ( 8 ) would represent $\qquad$ while flow (7) would represent $\qquad$
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Solution

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Solution Steps

Step 1: Identify the components
  • Box A represents households.
  • Box D represents the resource market.
  • Box C represents businesses.
Step 2: Determine the flow (8)
  • Flow (8) is from households (A) to the resource market (D).
  • Households provide resources (labor, land, capital) to the resource market.
Step 3: Determine the flow (7)
  • Flow (7) is from the resource market (D) to households (A).
  • The resource market provides income (wages, rent, interest, profits) to households.

Final Answer

  • Flow (8) would represent resources (labor, land, capital) provided by households to the resource market.
  • Flow (7) would represent income (wages, rent, interest, profits) provided by the resource market to households.
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