Circular Flow Model Notes (1/23/15)- Market Economy
- Resource (Factor) Market- land, labor, entrepreneurship
- firms buy
- households sell
- Product Market- product, service
- firms sell
- households buy
- Government
- both a consumer & producer in both markets
Example of a market economy:
Could I ask that you elaborate on your circular flow model? What exactly do firms "buy and sell" and how does the government tie into this? While the chart included was helpful, it's awfully vague and so are your notes. A little elaboration would go a long way! :3
ReplyDeleteThe image that you included helped with the understanding and visuals of how the circular model works. From here, I can see the path in which things flow compared to just words explaining it. It also seems like you are missing some notes that she mentioned in class.
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