9.9.2013_ECO_102

Factors of production the inputs used to make goods

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Unformatted text preview: , and entrepreneurial ability. Factors of production The inputs used to make goods and services. (Productive Resources) The Market System The Circular Flow of Income Two key groups participate in markets: • A household consists of all the individuals in a home. Firms are suppliers of goods and services. • Circular-flow diagram A model that illustrates how participants in markets are linked. Two Assumptions: 1.No government---No taxes, no government spending. 2.No rest of the world –no international trade. The Market System The Circular Flow of Income The Circular-Flow Diagram...
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This document was uploaded on 03/29/2014.

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