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Circular Flow Infographic

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Tyler Carroll
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71 views1 page

Circular Flow Infographic

Uploaded by

Tyler Carroll
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
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What roles do households, firms, and government play in markets? Noise ere el ea} The Circular Flow Model Tu , firms are the sellers (supply) and households are the buyers (demand). CSE " CN CSET) Sur RP CeYEC Qe MTN UNS aS mea ey U i I Tem Orea cat eM a EAT CM ELM Ue Tmt , households are the sellers (supply) and firms are the buyers (demand). Resource Market Product Market ET) tr Land includes all production inputs PS CLO Rue ee Pe RT Aree eee eee DU Uc 4 Labor Al ¥F a eT 4 Ay Pare BT Tat) te || ad Services are intangible and usually (75% nC Cet g involve paying a firm to do something Soods used inthe production of other are oods and services, Pe Re Cees TCT et) y suor Y Entrepreneurs take risks and Pepeleees Se ney ® sal ees CH Government in the Circular Flow Ina three-sector circular flow diagram, government is a buyer (demand) in both the product and Tesource markets. Government provides public goods, public services, and transfer payments to households and firms in exchange for tax payments. Cee Goods and Services HOUSEHOLDS = Ca : FIRMS ard Q SUS ay _ CTR SU a) 5 ees || | eee 7 Sa Oy Wages/Salaries Payments to households (income) DORA a er rg Teac 9 PRO aL) Se Ree ceed Transfer Payments Rent RLM eB SONU e ee Car Public Goods my and Services Profit Payments to households (income) in fae ro) Dee eu whose business revenue exceeds costs eA PONT) oN Subsidies Money received by firms in the [Olu Fs) pe acc ono a Bree Ray a) ri Z Measuring the Economy Using the Circular Flow re =C+ 1+ G+NX wo eNO V CEL ih TT =W+1+R+P es Learn more about this topic and download a copy of this infographic by visiting frbatlanta.org/education/classroom-tools/infographics.aspx TORN rosa pay ee MERAY

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