Wednesday, February 10, 2016

Unit 2- Circular Flow Diagram


  • Product Market: Firms sell products, and households buy products here.
  • Factor (Resource) Market: Firms buy products, and housesolds sell products here.
  • Households: Sell resources and buy products.
  • Firms: Buy resources and sell products.
  • Factors of Production: Land, labor, capital, and entrepreneurship.

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