Circular Flow of a Market Economy - PowerPoint PPT Presentation

Loading...

PPT – Circular Flow of a Market Economy PowerPoint presentation | free to download - id: 6c7906-NDgyN



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Circular Flow of a Market Economy

Description:

... Taco Bell just hired you to assemble tacos Market: Flow: Resource (FOP) Household provides FOP (Labor) Households Pay for G/S (Products) ... – PowerPoint PPT presentation

Number of Views:9
Avg rating:3.0/5.0
Date added: 2 August 2019
Slides: 18
Provided by: Pren68
Learn more at: http://www.mpsaz.org
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Circular Flow of a Market Economy


1
Circular Flow of a Market Economy
  • Have Notebooks out
  • Warm up Why are entrepreneurs needed in the
    economy?

2
What does an economy look like?
3
Circular Flow of a Market Economy
  • In a free market economy, households and business
    firms use markets to exchange money and products.
  • Households own the Factors of Production
    (land, labor and capital) and consume goods and
    services
  • Firms produce goods by taking inputs (FOP) and
    turning them into outputs (finished products)

4
Circular Flow of a Market Economy
Product market
Product Market the exchange of finished
products (G/S) for money
Factor Market the exchange of Factors of
Production (FOP) for money
Factor (Resource) market
5
Circular Flow of a Market Economy
  • Product Market
  • Firms
  • Supply the goods and services that they produce
    to the households
  • Physical Exchange
  • Households
  • Pay the firms for goods and services that they
    need
  • Monetary Exchange

Product market
6
Circular Flow of a Market Economy
  • Factor (Resource) Market
  • Households
  • Supply the labor (workers) to firms as well as
    land (resources) and capital (investors)
  • Physical exchange
  • Firms
  • Pay households for labor (salaries) and land as
    well as paying back investors (profits)
  • Monetary exchange

Factor (Resource) Market
7
Circular Flow Model Review (Worksheet)
ltltltltltltBusiness Provide G/S (Products)
Households Pay for G/S (Products) gtgtgtgtgtgt
ltltltltltltltBusiness Pay for FOP (Resources)
Households Provide FOP (Resources)gtgtgtgtgtgt
8
Circular Flow Model Review (Worksheet)
MARKET FLOW
A. Taco Bell just hired you to assemble tacos
________ _____ B. You receive
your first paycheck (68.24)
________ _____ C. You order two tickets
online for a concert ________
_____ D. Your tickets arrive by mail
________
_____ E. In which market are households buyers?
________ _____ F. In which market
are households sellers? ________
_____ G. In which market are businesses buyers?
________ _____ H. In which market
are businesses sellers? ________
_____
9
Circular Flow Model Review (Worksheet)
ltltltltltltBusiness Provide G/S (Products)
Households Pay for G/S (Products) gtgtgtgtgtgt
ltltltltltltltBusiness Pay for FOP (Resources)
Households Provide FOP (Resources)gtgtgtgtgtgt
Taco Bell just hired you to assemble
tacos Market Flow
Resource (FOP)
Household provides FOP (Labor)
10
Circular Flow Model Review (Worksheet)
ltltltltltltBusiness Provide G/S (Products)
Households Pay for G/S (Products) gtgtgtgtgtgt
ltltltltltltltBusiness Pay for FOP (Resources)
Households Provide FOP (Resources)gtgtgtgtgtgt
Taco Bell gives you first paycheck
(68.24) Market Flow
Resource (FOP)
Business Pay for FOP (Resources)
11
Circular Flow Model Review (Worksheet)
ltltltltltltBusiness Provide G/S (Products)
Households Pay for G/S (Products) gtgtgtgtgtgt
ltltltltltltltBusiness Pay for FOP (Resources)
Households Provide FOP (Resources)gtgtgtgtgtgt
You buy two tickets online for a
concert Market Flow
Product
Household pays for G/S
12
Circular Flow Model Review (Worksheet)
ltltltltltltBusiness Provide G/S (Products)
Households Pay for G/S (Products) gtgtgtgtgtgt
ltltltltltltltBusiness Pay for FOP (Resources)
Households Provide FOP (Resources)gtgtgtgtgtgt
Your concert tickets arrive online Market Flow
Product
Business Provide for G/S
13
Circular Flow Model Review (Worksheet)
ltltltltltltBusiness Provide G/S (Products)
Households Pay for G/S (Products) gtgtgtgtgtgt
ltltltltltltltBusiness Pay for FOP (Resources)
Households Provide FOP (Resources)gtgtgtgtgtgt
In which market are households buyers?
Product
14
Circular Flow Model Review (Worksheet)
ltltltltltltBusiness Provide G/S (Products)
Households Pay for G/S (Products) gtgtgtgtgtgt
ltltltltltltltBusiness Pay for FOP (Resources)
Households Provide FOP (Resources)gtgtgtgtgtgt
In which market are households sellers?
Resource (FOP)
15
Circular Flow Model Review (Worksheet)
ltltltltltltBusiness Provide G/S (Products)
Households Pay for G/S (Products) gtgtgtgtgtgt
ltltltltltltltBusiness Pay for FOP (Resources)
Households Provide FOP (Resources)gtgtgtgtgtgt
In which market are businesses buyers?
Resource
16
Circular Flow Model Review (Worksheet)
ltltltltltltBusiness Provide G/S (Products)
Households Pay for G/S (Products) gtgtgtgtgtgt
ltltltltltltltBusiness Pay for FOP (Resources)
Households Provide FOP (Resources)gtgtgtgtgtgt
In which market are businesses sellers?
Product
17
(No Transcript)
About PowerShow.com