Draw a Circular Flow Diagram with Households and Firms and Without

question 186

Essay

Draw a circular flow diagram with households and firms and without government.Label the markets and the flows in the circular flow diagram.

Identify the concepts of consumer and producer surplus.

Apply the law of demand in different market scenarios.

Examine the effects of income variations on the demand for goods.

Distinguish between movements along the demand/supply curve and shifts in the demand/supply curve.

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Definitions:

Bioplastics

A type of plastic derived from renewable biomass sources, such as vegetable fats and oils, corn starch, or microbiota, as opposed to fossil-fuel plastics.

Corn Starch

A white powdery substance derived from the endosperm of corn kernels, used as a thickener in cooking and in various industrial applications.

Oil Production

The extraction of crude oil from the earth's surface, which is further refined into various petroleum products like gasoline and diesel.

Pseudomonas Aeruginosa

A common, opportunistic bacterium that can cause diseases in plants, animals, and humans, particularly in immunocompromised individuals.