9-11-07 - Circular Flow Four Groups Consumers Business...

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Circular Flow Four Groups: Consumers Business Firms Government Foreigners U.S. Export –  something the U.S. makes and sells U.S. Import –  something we bring in Two Markets: Factor Markets – any place where factors of production are bought and sold Product Markets – any place where finished goods and services are bought and sold Household –  group of people living at same address and making joint financial decisions Leakages/Withdrawals Save Government/Taxes Imported Locating Markets –  a market exists wherever and whenever an exchange takes place Dollars and Exchange –  every market transaction involves an exchange of dollars for goods (product markets) or resources (factor  markets) Barter Economy –  exchanges not involving money (faster than money transactions) Must be buyer and seller in every market transaction
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This note was uploaded on 04/18/2008 for the course ECON 202 taught by Professor Woroby during the Spring '08 term at Towson.

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