Explain how money (increased commerce) spent by tourists in the Macro Islands moves through the economy's circular flow diagram. Make sure that each market and the government are included in your explanation.

Question

anonymous · Answer

Here's a copy of the flow chart.

anonymous · Answer

I'm not sure how to write this. I think I have to assign each market an example. But government taxes is already its own example? so...

anonymous · Answer

Foreign tourists spend money and that money generates higher incomes, which is then spent by individuals on more products and services, meaning more income for businesses, meaning higher incomes, etc. 

IMPORTS? Tourism money acts more like exports than imports, since a country is selling its resources (natural beauty) and services (hotels, restaurants) in return for foreign money.

anonymous · Answer

Shoot I didn't post a part of the question.
"assume the Macro Islands have not developed an international sector for their economy."

anonymous · Answer

How does that change the islands economy? Arn't islands ALL ABOUT dem tourists? What kind of business can I use that doesn't export/import internationally?