Wednesday, February 7, 2018

Unit Two: Circular Flow



  • Household - Person or a group of people who share an income
  • Firms - organization that produces good and services for sale
  • Factor (Resource) Market - market in which the factors of production are bought by firms and sold by households
  • Product Market - where goods and services are bought and sold

Factor Payments

  • Land - Rents
  • Labor - Wages
  • Capital - Interests 
  • Entrepreneurship - Profits


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