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Specifically, your supervisor has asked you to prepare the following: A circular flow diagram that includes the government s

 

Specifically, your supervisor has asked you to prepare the following:

  • A circular flow diagram that includes the government sector. For this part of your report, you should include a description of the roles that each participant plays in the economy and how the different sectors interact in the markets.
  • An illustration of the Production Possibilities model, including a summary of what the model is illustrating and the economic implications for the economy.
  • An explanation of why or why not trade with other countries is beneficial to an economy and how international trade fits into the circular flow diagram.
  • An explanation of the difference between micro and macro economics, indicating why the division is necessary.

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