The Circular-Flow Model_f09

The Circular-Flow Model_f09 - The Circular Flow Or There...

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: The Circular Flow Or There and Back Again Have You Seen the Movie Cast Away? Tom Hanks was stranded on desert island He made what he consumed He consumed what he made He lived in a subsistence economy Not true for us Households consume Firms produce The Circular Flow Model Households buy from firms Goods and services on Product Market Firms buy from households Productive resources on Factor Market Money flows from one to other There And Back Again The Circular-Flow Diagram Market for Goods and Services Firms Households Market for Factors of Production The Circular-Flow Diagram Market for Goods and Services Firms Households Market for Factors of Production spending The Circular-Flow Diagram Market for Goods and Services Firm s Households Market for Factors of Production spending revenue The Circular-Flow Diagram Market for Goods and Services Firms Households Market for Factors of Production spending revenue wages, rents, & profits The Circular-Flow Diagram Market for Goods and Services Firm s Households Market for Factors of Production spending revenue wages, rents, & profits income The Circular-Flow Diagram Market for Goods and Services Firms Households Market for Factors of Production spending revenue wages, rents, & profits incom e labor, land and capital The Circular-Flow Diagram...
View Full Document

Page1 / 24

The Circular-Flow Model_f09 - The Circular Flow Or There...

This preview shows document pages 1 - 10. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online