Circular Flow Flashcards
What helps the resources and goods and services move around the circular flow?
Money
What payment do households recieve for providing resources in the market for resources?
Income
What are the economic resources?
Land, labor, capital, & entrepreneurial ability
What payment do businesses recieve for the goods and services they sell in the market for goods and services?
Revenue
In which market would a producer sell bicycles to consumers?
Market for goods and services
In which market do households sell their labor?
Market for resources
In which market would a producer buy the equipment and technology need to manufacture bicycles?
Market for resources
Ultimatley, who owns all economic resources?
Households
In which market would a household buy the food they need to make dinner?
Market for goods and services
Define Circular Flow
The flow of economic resources, goods and services, and money within the economy
What are the 2 groups of economic decision makers?
Households and Businesses
What type of resource is land?
Natural resources
What type of resource is labor?
Paid work
What type of resource is capital?
Goods used to produce other goods/services
What is entrepreneurial ability?
Human resource combining all the other resources to produce new goods and services and bring them to market
