(Solved): 1. Using the basic circular flow model, explain why the value of businesses' output of goods and s ...

1. Using the basic circular flow model, explain why the value of businesses' output of goods and services equals the income of households. 2. Which of the following are final goods or services and which are intermediate goods or services? a Timber sold to a family to be used in repairing their bock deck. b A tonne of fertiliser sold to and to be used by a farmer for his sugar cane crop to ready it for market. c Household cleaning purchased by a family from a domestic cleaning services company. \( \mathrm{d} \) A sheet of glass sold to a windscreen maker to be used to make truck windscreens.