Tuesday, February 9, 2016

(1-27-16) Unit II Circular Flow Diagram

Circular Flow Diagram

Credit for image -
https://ibecon3.wikispaces.com/file/view/Circlular_flow.JPG/61031684/Circlular_flow.JPG
Circular Flow Diagram-represents the transactions in an economy
Product Market-a place where goods and services are produced by business's
(goods and services)
Factor Market-a place where households sell resources and producers buy resources
Firms-organization that produces goods and services for sale
Household-Person or group of people that share their income -sells factors of production to businesses

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