Circular Flow of Economic Activity

1
(No Transcript)
2
Circular Flow of Economic Activity

• P.14-15
• Factor Markets
• Where productive resources are bought and sold
• Product Markets
• Producers sell goods and services to customers

3
Circular Flow of Economic Activity

• R Business Income
• E Payments for Resources
• J Income from Resources
• K Consumer Spending
• H Goods and Services
• B Factors of Production
• D Buying of Resources
• F Goods and Services

4
Test Wednesday

• 3 questions What, How, For whom?
• Productive Resources land, labor, capital,
  entrepreneurs
• Trade-offs v. opportunity costs
• Types of economies --- look at advantage/disadvant
  age diagram in book
• Circular flow of economic activity --- look at
  diagram in book, be able to tell what is going on
  at each arrow
• Go over items from website
• If you need to use a computer, I will be in here
  until 400 today.