Circular Flow Flashcards
What households receive from the resource market in return for resources (labour).
Income
What the resource market receives from households in return for income.
Resources (labour)
What the resource market receives from businesses in return for resources (labour)
Costs
What businesses receive from the resource market in return for costs
Resources (labour)
What businesses receive from the product market
Revenue
What the product market receives from businesses in return for revenue
Goods and services
What the product market receives in return for goods and services
Expenditure
What households receive in return for expenditure
Goods and services
What the Government receives from both businesses and households in return for public goods
Taxes
What the Government gives to businesses in return for taxes
Public goods, subsidies
What the Government gives to households in return for taxes
Public goods, welfare
What the resource market gives to the Government in return for Government Spending
Resources (labour)
What the product market gives to the Government in return for Government Spending
Goods and services
What the Government gives to the product and resource markets in return for labour and G+S’s
Government Spending
