In the absence of government and foreign trade, the national accounts show that:

Question

Quizplus · Accepted Answer

In the absence of government and foreign trade, the national accounts framework simplifies to an economy where households supply resources (labor, capital) to the production process, and firms supply goods and services (output) to the market. Households then use their income from supplying resources to purchase the goods and services produced by firms.

In the Absence of Government and Foreign Trade, the National