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Hey everyone, today we're answering problem 16 from chapter one of the textbook.
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So it asks us to think about the households in the circular flow diagram, which you have in chapter one, section three of your textbook.
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So that is right here.
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And this image is also included in that section of the textbook if you want to refer back to it after this problem.
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All right.
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So let's think about what is happening here.
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So we are asked first, are households, buyers or sellers in the goods and certain? market.
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All right.
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So goods and services, let's look at how it's being, you know, flowed in the circular flow diagram.
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Well, firms are selling their goods and services to households, right? and then the payment or the buying of these goods and services is what households are doing for the firms.
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So clearly, since they're making payments for goods and services in the circular flow diagram, we know that households are primarily buyers in the goods and services market.
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And logically, that should make sense to you over, okay, in the goods and services market.
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So logically, if we think about this, just for a second, firms will produce the goods and services.
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You know, businesses produce, you know, whatever you want, you know.
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For example, stubhub has tickets.
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So it's offering that goods so you can see service...