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Circular flow of income

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    Circular flow of income Circular flow of income Presentation Transcript

    • The Circular Flow of Income
    • Product Market
      Household
      Firms
      Government
      Resource Market
    • Inputs of Production
      Product Market
      Consumption of Goods and Services
      Sell Goods and Services
      Household
      Firms
      Government
      Purchase Inputs to Produce
      Resource Market
      Sell Inputs to Production
    • Revenue and Costs
      Product Market
      Consumption Expenditures
      Revenue from the Sale
      Household
      Firms
      Government
      Resource Costs (Nominal)
      Resource Market
      Income from Factors of Production
    • Government
      Product Market
      Buying and Selling of Goods and Services
      Pay Taxes
      Government
      Foreign
      Household
      Firms
      Loanable Funds
      Resource Market
    • Loanable Funds
      Product Market
      Government
      Foreign
      Firms
      Household
      Loanable Funds
      Budget Deficient
      Borrowed Funds (Investment)
      Save (Excess Funds)
      Resource Market
    • Circular Flow of Income
      Product Market
      Sell Goods and Services
      Consumption Expenditures
      Consumption of Goods and Services
      Buying and Selling of Goods and Services
      Imports and Exports
      Revenue from the Sale
      Pay Taxes
      Government
      Foreign
      Firms
      Household
      Supply (excess funds)
      Loanable Funds
      Budget Deficient
      Borrowed Funds (Investment)
      Save (Excess Funds)
      Income from Factors of Production
      Resource Costs (Nominal)
      Purchase Inputs to Produce
      Sell Inputs to Production
      Resource Market
    • The End