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CIRCULAR FLOW (CLOSED
ECONOMY)
PARTICIPANTS:
o FACTOR MAKET
o HOUSEHOLDS
o PRODUCT MARKET
o BUSINESS FIRMS
o GOVERNMENT
FACTOR MARKET
FACTOR MARKET CONT…
FACTOR MARKET REMUNERATION:
o LABOUR MAKET ~ WAGES / SLARIES
o LAND ~ RENT
o CAPTIAL ~ INTEREST
o ENTERPRENEURSHIP ~ PROFIT (Tukur, 2012)
HOUSEHOLDS
o Responsible for paying tax to the
government
o Receive public goods from the government
o Sell factors of production to the factor
market
o Receive remuneration from the factor
market
o Buy goods and services from the factor
market (Tukur, 2012)
Picture reference (Peggy, 2018)
PRODUCT MARKET
o Sell goods and services to households
o Pay tax to government
o Receive public goods and services from
government
o Buy FOP from factor market
o Pays remuneration to factor market (Peggy,
2018)
BUSINESS MARKET
o Provide goods and services to product market
o Receives revenue from product market
o Receives resources from firms
o Pays for cost to firms (Kristin, 2013)
GOVERNMENT
o Provides public goods and services to firms,
households , and businesses.
o Receives tax from firms, businesses and
households
o Buys goods and services from product market
(Tukur, 2012)
REFERENCES
FAITH, K., 2013. SLIDE PAGE. [ONLINE]
AVAILABLE AT: HTTPS://WWW.SLIDESHARE.NET/KRISTINFAITH858/THE-CIRCULAR-
FLOWOFECONOMICACTIVITY?QID=29589098-E86F-4569-8FE2-
1F9A50751BE7&V=&B=&FROM_SEARCH=6
[ACCESSED 20 AUGUST 2022].
PEGGY, M., 2018. SLIDE SHARE. [ONLINE]
AVAILABLE AT: HTTPS://WWW.SLIDESHARE.NET/MMANKGITLANAPEGGY/THE-CIRCULAR-
FLOW-113266564?QID=475B0607-AE55-446E-B8F6-
8408A7EE5E35&V=&B=&FROM_SEARCH=10
[ACCESSED 20 AUGUST 2022].
TUKUR, S., 2012. SLIDE SHARE. [ONLINE]
AVAILABLE AT: HTTPS://WWW.SLIDESHARE.NET/SANJAYADVENT/FACTOR-MARKET-
13882688?QID=644B1E77-27D1-4369-8899-DA1D1D12FCA5&V=&B=&FROM_SEARCH=5
[ACCESSED 8 AUGUST 2022].

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SLIDESHARE CIRCULAR FLOW 210822 (1).pptx

  • 1. CIRCULAR FLOW (CLOSED ECONOMY) PARTICIPANTS: o FACTOR MAKET o HOUSEHOLDS o PRODUCT MARKET o BUSINESS FIRMS o GOVERNMENT
  • 3. FACTOR MARKET CONT… FACTOR MARKET REMUNERATION: o LABOUR MAKET ~ WAGES / SLARIES o LAND ~ RENT o CAPTIAL ~ INTEREST o ENTERPRENEURSHIP ~ PROFIT (Tukur, 2012)
  • 4. HOUSEHOLDS o Responsible for paying tax to the government o Receive public goods from the government o Sell factors of production to the factor market o Receive remuneration from the factor market o Buy goods and services from the factor market (Tukur, 2012) Picture reference (Peggy, 2018)
  • 5. PRODUCT MARKET o Sell goods and services to households o Pay tax to government o Receive public goods and services from government o Buy FOP from factor market o Pays remuneration to factor market (Peggy, 2018)
  • 6. BUSINESS MARKET o Provide goods and services to product market o Receives revenue from product market o Receives resources from firms o Pays for cost to firms (Kristin, 2013)
  • 7. GOVERNMENT o Provides public goods and services to firms, households , and businesses. o Receives tax from firms, businesses and households o Buys goods and services from product market (Tukur, 2012)
  • 8. REFERENCES FAITH, K., 2013. SLIDE PAGE. [ONLINE] AVAILABLE AT: HTTPS://WWW.SLIDESHARE.NET/KRISTINFAITH858/THE-CIRCULAR- FLOWOFECONOMICACTIVITY?QID=29589098-E86F-4569-8FE2- 1F9A50751BE7&V=&B=&FROM_SEARCH=6 [ACCESSED 20 AUGUST 2022]. PEGGY, M., 2018. SLIDE SHARE. [ONLINE] AVAILABLE AT: HTTPS://WWW.SLIDESHARE.NET/MMANKGITLANAPEGGY/THE-CIRCULAR- FLOW-113266564?QID=475B0607-AE55-446E-B8F6- 8408A7EE5E35&V=&B=&FROM_SEARCH=10 [ACCESSED 20 AUGUST 2022]. TUKUR, S., 2012. SLIDE SHARE. [ONLINE] AVAILABLE AT: HTTPS://WWW.SLIDESHARE.NET/SANJAYADVENT/FACTOR-MARKET- 13882688?QID=644B1E77-27D1-4369-8899-DA1D1D12FCA5&V=&B=&FROM_SEARCH=5 [ACCESSED 8 AUGUST 2022].