Answer to Question #144776 in Political Science for Terry

Question #144776
Three major flows in any economy are?
Expert's answer

In political economics, an economic system entails resource allocation, as we as the production and distribution of goods and services within a geographical area or a society. The system comprises various institutions, agencies, entities, decision-making processes and consumption patterns. Production and consumption are interested and explained in three major flows. The circular flow in a two-sector economy occurs in a simplified economy comprising households or consumers and business firms. The circular flow in a three-sector economy entails households/consumers, firms and government. The government introduces taxes and public expenditure in this economic system. Thirdly, the circular flow in a four-sector economy includes housedolds/consumers, business firms, government and exports. Foreign trade plays a fundamental role in this economic system.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question

New on Blog