经济学导论PPT课件

Firms
Households
Inputs for production
Wages, rent, and profit
Market for Factors
of Production
Labor, land, and capital
Income
2020/1/11
8
Simplified Circular Flow of Income (p178)
• Withdrawal ( W )
– Saving by household ( S ) – Tax paid to the Government ( T ) – Imports ( M )
Income (Y)
The circular flow of income (p183)
INJECTIONS
• Markets for Factors of Production
– Households sell – Firms buy
The Circular-Flow Diagram
• Factors of Production
– Inputs used to produce goods and services
• Households
– Buy and consume goods and services – Own and sell factors of production
The Circular-Flow Diagram
• Markets for Goods and Services
– Firms sell – Households buy
Enhance foreign reserves and cause trade surplus
Purposes
Money safety and interests earning
Government revenue Redistribution of income
Consume the quality and /or relatively cheap Cause trade deficit
Chapter 10 Circular Flow of
Income
The Circular-Flow Diagram (p177 178)
• The circular-flow diagram is a visual
model of the economy that shows how income flow through markets among households and firms.
Net expenditure (M) taxes (T)
saving (S)
WITHDRAWALS
A simplified circular flow of income model (p183)
J=I+G+X
Incomes (Y)
Consumption Spending (C)
W=S+T+M
Elements of Injection and Withdrawal (p180-183)
– Land, labor, and capital
The Circular Flow of Income Diagram p178
Revenue
Goods & Services sold
Market for Goods
and Services
Spending
Goods & Services bought
The circular flow of income
Firms
Income (Y)
Consumption of domestically
produced goods and services (C)
Households
The Circular-Flow Diagram
• Firms
– Produce and sell goods and services – Hire and use factors of production
• It is a closed economy
– There is no government intervention – There is no international trade
• This simple model is not realistic
– Households do not always spend all income received (saving)
Export expenditure (X) Investment (I)
Consumption of domestically
produced goods and services (C)
Government expenditure (G)
BANKS, etc GOV.
ABROAD
Import
Net
A circular flow of income model (p179)
Injection (J)
Incomes (Y)
Consumption Spending (C)
Withdrawal (W)
Baidu Nhomakorabea
Injection and Withdrawal (p179)
• Injection (J)
– Investment by firms ( I ) – Government Spending (G) – Exports ( E )
Injection Purposes
Examples
Investment ( I )
Government spending (G)
Exports (X)
Withdrawal
Savings ( S ) Taxation ( T )
Imports ( M )
Business expansion
Welfare, construction, and national security
– Firms do not pay out all their income (investment)
• Money entering the flow is called “Injection” (J)
• Money leaving the flow is called “Withdrawal” (W)