Circular Flow Model
Studied by 1 person
Call with Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt Play1/14
There's no tags or description
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai |
|---|
No study sessions yet.
15 Terms
Businesses ——> Resource Market
Costs
Resource Market ——> Businesses
Resources
Businesses ——> Product Market
Goods and Services
Product Market ——> Businesses
Revenue
Product Market ——> Households
Goods and Services
Households ——> Product Market
Consumption Expendicures
Households ——> Resource Market
Neutral Ability: Labor, Land, Capital, Entrepreneurship
Resource Market ——> Households
Interest Profit: Money, Income, Wages, Rent
Circular Flow Model
No government; Pure capitalism
Modified: Government’s 20% ——> Resource Market —→ Households
Government Spending
Modified: Households ——> Resource Market ——> Government’s 20%
Resources
Modified: Government’s 20% ——→ Product Market ——> Businesses
Revenue
Modified: Businesses ——→ Product Market ——>Government’s 20%
Goods and Services
Modified: Government’s 20% ——> Businesses and Households
Services
Modified: Businesses and Households ——> Government’s 20 %
Taxes
Note 
Flashcards (41)