Money, money, money and more money
10:30 AM
Do you have an idea
how or why each form of money is received or paid by each economic agent? Well
based from what I have learned from our Economics class, businesses are paying
costs for the resources in the factor market and so that becomes the income for
the households. That income is being used by the households to consume goods
and services, being paid to the product market and that becomes the revenue for
the businesses. Furthermore, the government also purchases goods and services
from the businesses and hires labor from the households and they also put taxes
for both the businesses and the households. Thus, in return the government
provides services and income payments to the businesses and the households as
well.
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