Saturday, January 14, 2017

Circular Flow Model

Markets:

  • way for buyers and sellers to trade. 
  • Can be local, regional, national, global, and cyberspace.
Factor market
where people earn their incomes; center on the four factors of production land, capital, labor, and entrepreneurs.

Product market
where people use their income to buy from producers. The product markets center on goods and services.

The Circular Flow Model:

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