"Figure 12-6 pulls together in a simplified way the main elements of income determination. Without saving and investment, there would be a circular flow of income between business and the public: above, business pays out wages, interest, rents, and profits to the public in return for the services of labor and property; and below, the public pays consumption dollars to business in return for goods and services. Realistically, we must recognize that the public will wish to save some of its income, as shown at the spigot Z. Hence, businesses cannot expect their consumption sales to be as large as the total of wages, interest, rents, and profits."
Quote Details
Added by wikiquote-import-bot
Unverified quote
0 likes
Original Language: English
Available Languages (1)
Sources
p. 218
https://en.wikiquote.org/wiki/Economics_(textbook)
Revision History
No revisions have been submitted for this quote.
Categories
Economics (textbook)
42 quotes on TrueQuotesView all quotes by Economics (textbook) →
Related Quotes
"Let us begin with a definition of economics. Over the last half-century, the study of economics has expanded to inclu…"
"Adam Smith discovered a remarkable property of a competitive market economy. Under perfect competition and with no ma…"
"If it doesn’t make good sense, it isn't good economics."
"Until the 1970s, high inflation usually went hand in hand with high employment and output.In the United States, infla…"
"If we think about the definitions, we find two key ideas that run through all of economics: that goods are scarce and…"
"It was Adam Smith who first recognized how a market economy organizes the complicated forces of supply and demand. In…"
"History — at least economic history — has taught the world certain basic economic principles that have been learned a…"
"A historian of mainstream-economic doctrines, like a paleontologist who studies the bones and fossils in different la…"
"We have seen that markets have remarkable efficiency properties. But we cannot say that laissez-faire capitalism prod…"
"Specialization and trade are the key to high living standards. By specializing, people can become highly productive i…"