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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