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Income: Factor Payment

This diagram shows the circular flow of income and spending between households and firms through factor markets, product markets, and the financial sector. Households supply factors of production like labor to firms and receive income, while firms provide goods and services to households. The government sector collects taxes from households and firms and engages in public saving and investment.

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Rana Umar
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18 views1 page

Income: Factor Payment

This diagram shows the circular flow of income and spending between households and firms through factor markets, product markets, and the financial sector. Households supply factors of production like labor to firms and receive income, while firms provide goods and services to households. The government sector collects taxes from households and firms and engages in public saving and investment.

Uploaded by

Rana Umar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Income Market for factor of Factor Payment

Production

Private Saving Investment


Capital
Markets

Public Saving
Taxes
House Holds GOVT SECTOR Firms

Consumption Firm Revenue


Market for Goods and
Services

Export Manpower Exports Receipts


Foreign
Trader
Foreign Remittance Import Payment

Explanations:

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