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The circular flow model outlines the flow of goods, services, and resources between households and businesses through resource and product markets. In the resource market, households provide resources to businesses in exchange for income, while businesses obtain resources and pay incomes. In the product market, businesses provide goods and services to households in exchange for money, while households receive goods/services and businesses receive money. Governments and the foreign sector also participate in economies.

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31 views1 page

Requirementds

The circular flow model outlines the flow of goods, services, and resources between households and businesses through resource and product markets. In the resource market, households provide resources to businesses in exchange for income, while businesses obtain resources and pay incomes. In the product market, businesses provide goods and services to households in exchange for money, while households receive goods/services and businesses receive money. Governments and the foreign sector also participate in economies.

Uploaded by

shaheen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Outline the flow of goods and resources to and from economic decision makers:

One way to understand how the economy works is the circular flow model. This model demonstrates the flow of
resources, goods, services, and income between households and business through the resource market and
the market for goods and services. In a few paragraphs, please:
1) Identify the primary economic decision makers.
2) Describe how money and resources are exchanged in the resource market, indicating
3) Who gets the resource
4) Who gets the income
5) Describe how money, goods, and services are exchanged in the product and services market, indicating
6) Who receives the goods and services
7) Who gets the income
8) give a brief description of any other participants in an economy that are not represented in this simple model
Refer to the Circular Flow model resources provided below:
The Circular Flow Diagram; http://econperspectives.blogspot.com/2008/04/circular-flow-diagram.html
Circular Flow of Economic Activity: The Flow of Goods, Services & Resources
http://study.com/academy/lesson/circular-flow-of-economic-activity-the-flow-of-goods-services-resources.html
Resource Market: Definition & Overview; http://study.com/academy/lesson/resource-market-definition-lesson-
quiz.html
In addition, it should be written well using correct grammar, and references need to be properly APA formatted

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