Problem
1. Using the basic circular flow model, explain why the value of businesses' output of goods and services equals the income of households.
2. A small economy produced the following final goods and services during a given month: 3 million pounds of food, 50,000 shirts, 20 houses, 50,000 hours of medical services, 1 automobile plant, and 2 tanks. Calculate the value of this output at the following market prices: $1 per pound of food $20 per shirt $50,000 per house $20 per hour of medical services $1 million per automobile plant $500,000 per tank
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.