The interaction among the private and public sectors of the economy
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The Interaction among the Private and Public Sectors of the Economy. Group 3 Hoi Wan Chan Jamie Desappio Lynean Graham Katarzyna Grabowska Marina Ristic Yi Shao . Question 5. How do the private sectors-households, business, and the international sector-interact in the economy?.

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The interaction among the private and public sectors of the economy l.jpg

The Interaction among the Private and Public Sectors of the Economy

Group 3

Hoi Wan Chan

Jamie Desappio

Lynean Graham

Katarzyna Grabowska

Marina Ristic

Yi Shao


Question 5 l.jpg
Question 5 Economy

  • How do the private sectors-households, business, and the international sector-interact in the economy?


Slide3 l.jpg

Financial Economy

Intermediaries

Saving

Investment

Payment for Goods and Services

Households

Firm

(Business Sector)

Goods and Services

Resources Services

Payments for Resource Services


The household sector l.jpg
The Household Sector Economy

  • Selling their resource services to business in exchange for money payments.

  • Spending their income for goods and services produced by the firms.

  • Place the balance in savings vehicles via financial intermediaries.


The business sector firms l.jpg
The Business Sector (Firms) Economy

  • Employing the services of resources in order to produce goods and services.

  • Pay households for their resource services.

  • Borrowing money from financial intermediaries expansion of their productive capacity.



Slide7 l.jpg

Financial buying and selling.

Intermediaries

Saving

Investment

Payment for Goods and Services

Households

Firm

(Business Sector)

Goods and Services

Resources Services

Payments for Resource Services

Foreign Countries

(International Sector)

Exports

Imports

Net Exports

Payments for Net Exports


The international sector foreign countries l.jpg
The International Sector buying and selling.(Foreign Countries)

  • Firms import goods and services from foreign countries and sell these goods and services to household.

  • Firms pay for goods and services from foreign countries.

  • Firms export goods and services to foreign countries.


Question 6 l.jpg
Question 6 buying and selling.

  • How does the government interact with the other sectors of the economy?


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Financial buying and selling.

Intermediaries

Investment

Saving

Payment for Goods and Services

Goods and Services

Taxes

Taxes

Households

Government

(Public Sector)

Firm

(Business Sector)

Govt Svcs

Govt Svcs

Resource Svcs

Goods & Svcs

Payment for

Resource Svcs

Payment for

Goods & Svcs

Resources Services

Payments for Resource Services

Foreign Countries

(International Sector)

Exports

Imports

Net Exports

Payments for Net Exports


The public sector the government l.jpg
The Public Sector buying and selling.(The Government)

  • Households sell resources to the government in return for income

  • Business firms sell the goods and services the produce to the government for revenue

  • Taxes are the income the government receives from households and firms


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Bank of America buying and selling.

$130

$130

$50

MP3 Players, laptops

Programmers

Taxes $20

U.S.

Government

Taxes $50

Dell

Financial Aid

Charter

Labor

Computer Rental

$200

$100

Labor

Wages $100

China

Exports

Imports

Net Exports

$250


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END buying and selling.