ECON 101 Lecture Notes - Lecture 5: Barter, Capital Market
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Document Summary
Barter: when people directly exchange goods or services that they have for goods or services that they want without using money. Trade takes the form of barter when people directly exchange goods or services they have for goods or services they want. The circular-flow diagram is a model that represents the transactions in an economy by flows around a circle. Production and trade in an economy can be represented by the circular-flow diagram. Trade in physical things such as goods, services, labor, and raw materials flows in one direction. And the money that pays for these physical things flows in the opposite direction. Circular-flow diagram: represents the transactions in an economy by flows around a circle. Goods, services, labor, or raw materials in one direction. Flows of money that pay for these physical things in the opposite direction. Household: a person or a group of people that share their income. Firm: an organization that produces goods and services for sale.
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A- market
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Question 30. 30. For economists, statements about the world are of two types: |
A- assumptions and theories.
B- true statements and false statements.
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