Purchase Solution

Fundamentals of economics

Not what you're looking for?

Ask Custom Question

I need your HELP answering these questions:

1. Explain how the circular flow diagram illustrates the interaction of households, governments, and business?

2. Illustrate market equilibrium using supply and demand curves?

3. Differentiate between movement along and shift of the demand curve?

4.Explain the relationship between market and aggregate supply and demand?

Can your answers be in paragraphs and can you give me the sources.
Also can you give me the meanings to circular flow diagram, market equilibrium, demand curve and aggregate?

Thank you, your HELP is GREATLY needed and appreciated.

Purchase this Solution
Solution Preview

Hi there,

Here are your answers:

Circular Flow Diagram:
The circular flow diagram divides the economy into two sectors: one concerned with producing goods and services, and the other with consuming them. Resources are converted into goods and services by business, and in this transformed state travel back to consumers. Money flows in the opposite direction. These flows involve two markets in which exchange takes place: the resource or factor market in which business buys resources, and the goods and services market in which business sells goods.

source: http://ingrimayne.saintjoe.edu/econ/TheFirm/CircularFlow.html

Market Equilibrium:
Markets exist in all types of goods and services, and as economists, we are interested in how they work and what causes them to change.

The market price is determined by the interaction of market supply (producers) and market demand (consumers).

The point ...

Purchase this Solution
Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

View More Free Quizzes
Related BrainMass Solutions

  • foreign exchange market anomalies

    Towards A Solution to the Puzzles in Exchange Rate Economics: Where Do We Stand? Canadian Journal of Economics/Revue Canadiene d'Economique, 38(3), 673-708.

  • Business Management and Self-Reflection

    Without getting acquainted with the fundamentals of this subject, we can not profoundly study finance and economics. So, the knowledge of Quantitative methods is essential to know more about finance and economics (Curwin & Slater, 2008).

  • Cost benefit Analysis for public projects

    The text is fundamentals of engineering economics (Chan S. Park). Thank you.

  • The Chicago (Monetarist) School of Economics

    Therefore, there is requirement of some sorts of interference or distortion within the system. Solution of the Chicago school revolves around the strict and entire application of fundamentals.

  • Filling in blanks for total and marginal utility

    Please let me know if I was able to be of assistance to you by leaving me a rating and comments. Thanks. This problem involves the fundamentals of Microeconomics

  • After covering Lean Supply Chains, do we really need inventory?

    Fundamentals of Managerial Economics. Thomson South - Western. Keown, Arthur J., et al. (2002). Financial Management: Principles and Applications Pearson, Education, Inc.

  • price "bubble

    Remember, many analysts of the time were predicting that mass production has changed the fundamentals of the market.

  • E-Commerce: Is it Really NEW

    Examples of business fundamentals include debt, cash flow, supply of and demand for the company's products, and so forth."

  • Trends Shaping the Global Market for U.S. Companies

    186755 Major trends (technology and economics) shaping the future of the global markets What major trend/s (technology and economics) do you feel are shaping the future of the global market for U.S. companies? Give support your selection.

  • Economics

    Macro-economics: It studies the structure, performance and behavior of national and regional economy of the Country.

View More Related Solutions