Circular Flow Diagram

Front

An economic model that shows the flow of money, goods, and services between households and businesses.

Back

Circular Flow Diagram

Front

The outside arrows of the circular flow diagram show the flow of _____________.

Back

Money

Front

The arrows on the inside of the circular flow model show the flow of ___________.

Back

factors of production and goods and services

Front

In the factor market, __________ sell factors of production.

Back

households

Front

In the product market, __________ sell goods and services.

Back

businesses

Front

Someone buys a car in exchange for a large amount of money. They have completed an exchange in which part of the circular flow model?

Back

Product Market

Front

The circular flow model shows that __________.

Back

there is a continuous flow of goods, services, and money between households and firms