CIRCULAR FLOW MODEL
- Represents the transactions in an economy by blows around a circle.
Three Economic Factors
- Households: Person or group of people that share their income.
- Government
- Firms: Organization that produces good and services for sales.
Two Markets
- Resource or Factor Market: Where households sell resources and businesses buy resources.
- Product: Where goods and services are produced by businesses and are bought and sold by the household.
No comments:
Post a Comment