The circular flow model is a summary of the operation of a market economy, that is the flow between production factors (firms) and households. Firms provide an income to households though employment (labour) and in the same manor households spend their income on firms for services and products.
The circular flow involves, purchasing resources in a resource market, and using the resources to produce a goods or service, selling the items to others in the output market. The consumer provide labor to firms through the resource market in exchange for money. They in-turn purchase goods and service from firms in the output market.
it is a flow of cash between businesses,fims
A circular flow model
Draw and explain circular flow model
what does a circular model of a mixed economy show
since there will be leakages from the circular flow
it is a flow of cash between businesses,fims
A circular flow model
Draw and explain circular flow model
what does a circular model of a mixed economy show
since there will be leakages from the circular flow
since there will be leakages from the circular flow
Taxation Imports Savings
Government is added into the circular flow model of a mixed economy.
Government is added into the circular flow model of a mixed economy.
A simple circular flow model shows the flow of goods and services through the economy. It is basically a model that shows supply and demand in an economy.
The flow through a circular channel goes in a roundabout motion.
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