Tuesday, February 9, 2016

Circular Flow Diagram

Circular Flow Diagram- Represents the Transactions in an Economy

Product Market: 
  • Households sell resources and businesses buy resources
    • Ex- Goods and Services
Factor/Resource Market: 
  • Factors of Production- Land, Labor, Capital, & Entrepreneurship
    • Place where Households sell resources & business buys resources
Firms- An organization that produces goods and services for sale

Household- A person or group of people that share their income

Posted by at

1 comment:

  1. UnknownFebruary 10, 2016 at 5:50 AM

    The flow chart helps explain how the flow of income and output works due to a visual view.

    ReplyDelete

Subscribe to: Post Comments (Atom)