In a free market circular flow chart what exchanges occur in the product market and the factor market?
Answers
Answered by
3
The circular flow of income depicts how money, goods, and services are exchanged in an economy. A household and a firm make up the two-flow circular income model. In exchange for money, the household purchases factors of production from the firm, while the firm purchases from the factor market. Households receive payment in return. After that, households head to the goods market to buy goods and services.
Similar questions