When modeling the flow of income and expenditures in an economy the two principal participants are households (consumers) and firms (producers). The normal flow of resources would be that a firm would produce goods and services and the households would consume that good or service. Where else can the income of a household flow

Question

Justin

Business

5 April, 00:19

When modeling the flow of income and expenditures in an economy the two principal participants are households (consumers) and firms (producers). The normal flow of resources would be that a firm would produce goods and services and the households would consume that good or service. Where else can the income of a household flow

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Jeramiah Mendoza · Answer 1

It must be found that the income of a home flows in a very habitual way day by day because the expenses that are generated in the daily living are many.

Regardless of the number of family members that make up a household, the flow of income will always correspond to a good or benefit to satisfy a basic or secondary need.

Explanation:

Other income that can flow from a household are those that are made through bank transactions, for scholarship payments, credit cards, or other types of transactions that allow households to make a profit.