Wednesday, February 10, 2016

Unit 2; Day 1

Circular Flow diagram- reps transactions in an economy

Product Market- Place where goods and services are produced by businesses

Factor market- place where households sell resources and businesses buy resources. Firms purchase/rent land and hire workers

Firms-organization that produces goods and services for sale

Household- Person/group that share income

WRIP- Wages, Rent, Interest, Profit

Circular-flow diagram

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