Unit II: Circular Flow Models
Circular flow- the flow of money, goods, services, and factors of production throughout an economy.
Government- providers of public goods and services and demand of both private goods and services and the factors of production.
Firms: organizations that produce goods and services for sale.
Household- A person or a group of people who share income. Households earn the factors of production
Product markets are where goods and services are bought and sold
Factor markets and resource markets: where factors of production and resources are bought and sold
Are the people who go to work from the households from the firms, are they considered as a part of Factors of Prodution?
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