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Economic Circular Flow

Economic Circular Flow. CE.12b. Questions. How do resources, goods and services, and money flow among individuals, businesses, and governments in a market economy?. Economic Circular Flow.

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Economic Circular Flow

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  1. Economic Circular Flow CE.12b

  2. Questions • How do resources, goods and services, and money flow among individuals, businesses, and governments in a market economy?

  3. Economic Circular Flow • Resources, goods and services, and money flow continuously among households, businesses, and markets in the United States economy.

  4. Economic Circular Flow • Individual and business saving and investment provide financial capital that can be borrowed for business expansion and increased consumption. • Individuals (households) own the resources used in production, sell the resources, and use the income to purchase products.

  5. Economic Circular Flow • Businesses (producers) buy resources; make products that are sold to individuals, other businesses, and the government; and use the profits to buy more resources.

  6. Economic Circular Flow • Governments use tax revenue from individuals and businesses to provide public goods and services.

  7. Review • Explain the circular flow that shows how consumers (households), businesses (producers ), and markets interact. • http://www.youtube.com/watch?v=_PKH2wtDT3E

  8. Vocabulary

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