Unit 2: Circular Flow

-
Image result for circular flow econ definition


Household: A person or a group of people who share an income
Firms: An organization that produces goods and services for sale
Factor (Resource) Market: It is the market in which factors of production are bought by firms and sold by households
Product Market: where goods and services are bought and sold

Factor payments (WILLIE RIP):
1. Land- rents
2. Labor-wages
3. Capital- interest
4. Entrepreneurship- profits

Comments

  1. Lamis E.March 1, 2018 at 8:01 PM

    I like the simplicity of your notes and their organization. I also appreciate your incorporation of the visual! It helps the reader comprehend the material more efficiently. I like how you included Willie RIP in the title for Factor payments as a reminder.

    ReplyDelete

Post a Comment