52 flow of economic activity


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52 flow of economic activity

  1. 1. Why Do We Participate in the Economic System??? Everything we do is connected to the economic system in some fashion. Each day we go to workbecause the work we provide is in demand in the andthe wages we receive enable us to get the the goods and services we need to live.
  2. 2. Goods and Services are sold to ConsumersMoney is exchanged for goods and services
  3. 3. Business and Gov’t pay individuals for laborIndividuals provide labor for businesses and Gov’t
  4. 4. Government provides services to its citizensCitizens pay taxes to their government
  5. 5. Participation in Economic Activity is circular in its nature. Labor is provided for wages and ages are exchanged for goods. However the wages earnedfrom labor are now gone and the process must begin again. This process will continuously repeat itself throughout your lifetime.