Circular Flow Model

Front

Where do factors of production (land, labor, etc) come from in the circular flow model?

Back

Individuals

Front

Where are factors of production (land, labor, etc) exchanged in the circular flow model?

Back

Factor Market

Front

In the circular flow diagram firms pay wages for which factor of production?

Back

Labor

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