Circular Flow Model Real Life Examples. A person goes and gets a job at taco bell. An example of this flow would be the actual groceries you buy from say your local supermarket.
When discussing the supply and demand for a good or service it is appropriate for households to be on the demand side and firms to be on the. Finally the person goes back to work and the circular flow continues. Money flows from consumers to firms through consumer spending.
Circular flow of model involves the production of goods and services with the.
Conversely households recieve an income through a firm s demand for the factors of production land labour capital and enterprise. Imagine that the dollar begins at a household sitting in say your wallet. An example of this income are wages paid to labour. Finally the person goes back to work and the circular flow continues.
