Circular Flow Of Income Diagram Economics. Income tax and national insurance. What is the circular flow of income.
3 spent on foreign made goods and services i e. In an economy households provide factors of production such as labour to firms. These are the goods and services up here.
Now the whole reason why i did this is to kind of show you the circular flow of goods and services.
Course learning objective 2. The most common form of this model shows the circular flow of income between the household sector and the business sector. Between economic agents the flows of money and goods exchanged in a closed circuit correspond in value but run in the opposite direction. These are the goods and services up here.
