Circular Flow Of Economic Activity

This model shows the flow of _______ in our society.

• business cycles

• economic activity

What 2 things do households do?

• buy products and help create them

• the sell products and help create them.

What market are you in when you are working?

• factor

• product 

What do you get when you work in the factor market?

• money

• goods

Businesses buy ____________ and use them to create a finished products.

• factors of production

• capital goods

The consumer purchases goods and services in the ____________ .

• factor market

• product market

You ______ in the product market and ________ in the factor market.

• shop, work

• work, shop

Money & goods and services go in 

• the same direction.

• opposite directions.