Circular Flow -

Circular Flow -

• Household - person or a group of people that share an income

• Firms - organization that produces goods and services for sale

• Factor (Resource) Market - the market in which the factors of production  are bought by firms and sold by households

• Product Market - market where goods and services are bought and sold

• Factor Payments -
• Land - rent
• Labor - wages
• Capital - interest
• Entrepreneurship - profits