Question

The following systems flowchart segment depicts a data entry clerk keying data from a source document into a business event data store. Which statement is correct?

a. The systems flowchart was created properly.
b. The arrow between the computer process and the data store should be bi-directional.
c. The computer process should be shown in the computer column.
d. The second symbol in the data entry clerk column should be a square.

Answer 1

To answer the student's question about modifying a circular flow diagram to include international trade, we draw a box outside the original circular flow to represent a foreign country and add arrows to show imports, exports, and the corresponding payments.

Step-by-step explanation:

The circular flow diagram is a visual representation of the economy that shows how households and firms interact within the markets for goods and services and labor. To modify this diagram to include international trade, we will add a foreign country component and its economic interactions.

• Draw a box outside the original circular flow to represent a foreign country.
• Draw an arrow from this foreign country box towards the 'firms' to indicate imports.
• Draw an arrow from 'firms' to the box representing the foreign country, to depict exports.
• Draw another arrow in the opposite direction, from 'firms' to the foreign country to show the payments for imports.
• The reverse arrow here would represent the payments that the foreign country makes to domestic firms for the exports.

This modified circular flow diagram now includes the transactions in goods and services that occur between domestic firms and the foreign sector, capturing the essence of international trade in the economy.