McConnell_Brue_Chapter02

Product categories learning objective 2 5 chapter 2

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Unformatted text preview: Chapter 2: The Market System and The Circular Flow Slide 35: The Resource Market (Learning Objective 2-5) The Resource Market The Resource Market The top half of the circular flow model represents the resource market. • Notice how money flows from businesses to households for the purchase of resources. Although households own all resources, the single resource most of us will identify with most strongly is that of labor. • The upper half of the model includes the exchange of money for our labor. The upper half of the The upper half of the circular flow diagram circular flow diagram represents the resource represents the resource market. market. Households sell their Households sell their resources (labor and resources (labor and otherwise) to businesses in otherwise) to businesses in this market and money from this market and money from the sale of the resources flows the sale of the resources flows to households. to households. Chapter 2 Chapter 2 35 35 Slide 36: The Product Market (Lea...
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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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