circular flow diagram Flashcards
1
Q
A
2
Q
markets for goods of services
A
- firms sell
- households buy
3
Q
households
A
- buy and consume goods and services
- own and sell factors of production
- inputs and outputs:
4
Q
markets for factors and production
A
- households sell
- firms buy
5
Q
firms
A
- produce and sell goods and services
hire and use factors of production
