Using the outline below, draw a circular-flow diagram representing the interactions between households and firms in a simple economy. Explain briefly the various parts of the diagram.
Definitions:
Vertical Analysis
A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) is represented as a proportion of the total account.
Net Sales
The amount of sales revenue remaining after deducting sales returns, allowances, and discounts.
Comprehensive Income
The change in equity of a company during a period from transactions and other events, excluding any owner contributions and distributions.
Unrealized Loss
A financial loss that has occurred on paper due to the current market value being lower than the asset's purchase price, but has not yet been realized through sale.
Q6: A popular celebrity that is paid highly
Q9: The most uncertain value used in the
Q15: Suppose the United States had a short-term
Q29: Communist countries worked under the premise that<br>A)people,
Q40: Equality refers to how the pie is
Q53: Refer to Figure 3-2. If the production
Q62: On a given trading day, 1,200 stocks
Q74: Refer to Figure 2-3. Efficient production is
Q89: In the simple-circular flow diagram, the flow
Q116: The opportunity cost of something is what