Chapter 2 we know of several problems command systems

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Unformatted text preview: rom the experiences of citizens in the former Soviet Union. Their system was notorious for having surpluses of certain goods available and shortages in the production of other goods. 33 Learning Objective 2-4 Slide 34: The Circular Flow Model The circular flow model represents a visual illustration of a simple market system. This visual illustration depicts the major participants in the system as businesses and households, and the major resource and product markets. The Circular Flow Model The Circular Flow Model The dynamic market The dynamic market economy creates economy creates continuous, repetitive continuous, repetitive flows of goods and flows of goods and services, resources, services, resources, and money. and money. Private decision Private decision makers are grouped makers are grouped into businesses and into businesses and households and households and markets are divided markets are divided into resource and into resource and product categories. product categories. Learning Objective 2-5 Chapter 2 Chapter 2 34 34 14...
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This note was uploaded on 09/10/2009 for the course ECO 2251 taught by Professor Kirkland during the Spring '09 term at Troy.

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