Explore BrainMass

Circular flow of goods and services

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

I need help finding an article that discusses the circular flow of goods and services. Please help me summarize the article's main points. Then, I need to find one source that disagrees with the article's position---highlight why. Include your opinion on the matter.

Please include the reference info. for the articles found so that I can read and understand the issues. I must not be grasping this topic as I have searched through tons of articles yet haven't found any conflicting points highlighted --- or at least don't understand enough what i am looking for to know if I have found them. Can you please help me understand?

© BrainMass Inc. brainmass.com October 24, 2018, 10:34 pm ad1c9bdddf

Solution Preview

The Institute for Policy Innovation has published a report on how the circular flow model can be used to analyze the efficiency of the tax system. It is available here:

In conclusion, the authors state that marginal tax rates that exceed average rates deter growth without bringing any additional revenue. They suggest that a more efficient taxation method would lessen taxation on capital, increasing it on labor if necessary.

Many countervailing opinions could be found. Generally, reduction of taxation of capital is viewed as lowering taxes on the wealthy, who generally control the means of production. Therefore, ...

See Also This Related BrainMass Solution


Your supervisor has been asked many questions about how the economy works and why the idea of limited resources is such a major concern in today's economy. Specifically, your supervisor has asked you to do the following:

Create an 3-6 page report, that includes an explanation and/or examples of:

A circular flow diagram that includes the government sector. For this part of your paper, you should include a description of the roles that each participant plays in the economy and how the different sectors interact in the markets.

An illustration of the Production Possibilities model, including a summary of what the model is illustrating and the economic implications for the economy.

An explanation of why or why not trade with other countries is beneficial to an economy and how international trade fits into the circular flow diagram.

An explanation of the difference between micro and macro economics, indicating why the division is necessary.
Then I have to turn this into a presentation (power point) as a training thing for pretend employees.

View Full Posting Details