Module 10 AP Macro

___________ is a simplified version of the economy.

• factors of production

• the stock market

• the circular flow map of economic activity

• imports

The flow map consists of two major parts

• households and firms

• foreign economies and domestic economies

• corporations and stockholders

• the press and the government

consists of individuals or people who share their income.

are organizations that produce goods and services for sale

market in which firms buy resources they need

What is one way in which you or your family participate in the factor market?

Market in which households buy goods and services they need

How do you participate in the product market?

Firms / Businesses participate in the factor market in all of the following ways EXCEPT

• They pay households for their labor

• They purchase land resources

• They pay households rent

• They sell goods and services to households