Make consumption expenditures and receive goods and services.
Circular flow
households
From the product market to households.
households
Labor
Circular flow
households
From the product market to households.
households
Labor
resources
Households and businesses
Households and Businesses
Economists use a circular flow model to highlight basic fetures of a market economy. The model shows how voluntary exchange between households and businesses answer the economy's "who" "how" and for whom questions and create a nexessary flow of money products and resources to help satisy wants.
Households are sellers of resources and demanders of products.
the interactions between households and businesses in the free market
Buy products and sell resources.