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  • Circular Flow of Transaction

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    Kathleen Baldemor
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    The circular flow of transactions model illustrates how money moves between producers and consumers in a continuous loop. It has four main parts - households who own resources and purchase goods, firms who purchase resources to produce goods, and two markets (resource and product) that facilitate exchanges between households and firms. Households sell resources to firms in the resource market and buy goods from firms in the product market, completing the circular flow.

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    WALA LNGSSS HAHAHAHA

    Original Title

    CIRCULAR FLOW OF TRANSACTION

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    The circular flow of transactions model illustrates how money moves between producers and consumers in a continuous loop. It has four main parts - households who own resources and purchase goods, firms who purchase resources to produce goods, and two markets (resource and product) that facilitate exchanges between households and firms. Households sell resources to firms in the resource market and buy goods from firms in the product market, completing the circular flow.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    7 views9 pages

    Circular Flow of Transaction

    Uploaded by

    Kathleen Baldemor
    The circular flow of transactions model illustrates how money moves between producers and consumers in a continuous loop. It has four main parts - households who own resources and purchase goods, firms who purchase resources to produce goods, and two markets (resource and product) that facilitate exchanges between households and firms. Households sell resources to firms in the resource market and buy goods from firms in the product market, completing the circular flow.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 9

    Circular Flow of Transaction

    Circular Flow of
    Transactions
    An economic model that
    illustrates how money
    moves from producers to
    consumer and back again
    in an endless loop.
    Resource Market

    Four main parts


    of the circular
    flow of
    transaction
    Product Market
    2 Pers0nal

    Households Firms
    2 Market
    Resource Market
    A market where a firm can go to purchase to produce
    goods and services

    Product Market
    Is where individuals go to purchase finished products.
    Households
    3 scarce resources
     Land
     Labor
     Capital
    Firms
    2 Market
    Resource Market
    A market where a firm can go to purchase to produce
    goods and services

    Product Market
    Is where individuals go to purchase finished products.
    Resource Market

    Firms Households

    Product Market

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