This economic flow chart shows the circular flow between households and businesses. Households provide factor services like labor to businesses in exchange for money income in the factor market. Businesses then use those factor services to produce goods and services, which they sell to households in the product market in exchange for revenue, completing the circular flow.

1. ECONOMI
C FLOW
CHART
HOUSEHOLDS
FACTOR
MARKET
BUSINESSES
PRODUCT
MARKET
Cost
Factor
of
production
Good
and
services
Consumption
expenditures
Money
income
Revenue
Interest
Goods and
services