In The Circular Flow Model Of The Economy. Markets for factors of production factor markets remember a market is just a place where buyers and sellers come together to generate economic activity. The most common form of this model shows the circular flow of income between the household sector and the business sector.
Money flows from producers to workers as wages and flows back to producers as payment for products. The circular flow model demonstrates how money moves through society. I also define the factors of production pu.
Money flows from producers to workers as wages and flows back to producers as payment for products.
The most common form of this model shows the circular flow of income between the household sector and the business sector. In short an economy is an. It helps to show connections between different sectors of an economy. Money flows from producers to workers as wages and flows back to producers as payment for products.
