2.4.1 - national income (circular flow)

0.0(0)
studied byStudied by 0 people
GameKnowt Play
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
Card Sorting

1/4

encourage image

There's no tags or description

Looks like no tags are added yet.

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

5 Terms

1
New cards

what is the circular flow of income

economic model showing how money flows in an economy

2
New cards

how does the circular flow of income look

.

<p>.</p>
3
New cards

household role in economy

own the wealth in an economy (as in the FoPs)

supply their FoPs to firms

recieve income as reward (rent, wages, interest, profit)

use reward to consume/purchase goods + services from firms

4
New cards

firms role in an economy

purchase FoPs from households

use resources to produce goods + services

sell goods + services to recieve sales revenue

5
New cards

income vs wealth

income = flow in the economy

wealth = stock of assets that can be used to generate income