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Unformatted text preview: -Produce whichever goods they want to produce using their comparitve advantage-Will sell these goods and services back to households Firms are receiving some revenue for the good they are selling This money comes from the household Slide 8 Chpt 2 Market for factors of production-need to hire workers, buy office space and land, -typically come from households Missing government-could be taxing firms and households that change the equation-Government provides benefits though that are also not in the equation Missing exports-Other countries that interact with firms and households in US Missing stock market...
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- Fall '08