ECON_102_CH2C

ECON_102_CH2C - Goods and Services Goods and Services...

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What is a Market? - A place where the buyers and sellers come together - In economics, we will study two types of markets: 1 Product (Good) Markets: Households buy goods and services produced by firms Factor Markets Firms buy factors of production from households Land/labour/capital/entrepreneurship are traded
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Circular Flow Diagram (Outer + Inner) 2 Households Buyers - Goods Market Sellers - Factor Market Factor Market Factors of Production are Traded Firms Buyers - Factor Market Sellers - Goods Market  Goods Market Goods and Services are Traded
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Unformatted text preview: Goods and Services Goods and Services Resources Resources Expenditure Wages, Rent, Interest, Profits Test Your Knowledge Land Rent Labor Wages Capital Interest Entrepreneurship - Profits 3 Product Markets Who are the buyers? Who are the sellers? What is bought and sold? Which way does money flow? Factor Markets Who are the buyers? Who are the sellers? What is bought and sold? Which way does money flow? Example: Circular Flow Model and Buying a Cup of Coffee 4...
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ECON_102_CH2C - Goods and Services Goods and Services...

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