In the Circular Flow example, some Households have Labor (and possibly other) resources which are ______________ and, therefore, they receive fewer Goods and Services in a Market based economy.

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22-07-2022
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In the Circular Flow example, some Households have Labor (and possibly other) resources which are ______________ and, therefore, they receive fewer Goods and Services in a Market based economy.

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baliyansmiriti baliyansmiriti · Answer 1 · 2022-07-30T09:43:38+02:00

In the Circular Flow example, some Households have Labor (and possibly other) resources that are under-employed and, therefore, receive fewer Goods and Services in a Market-based economy.

A circular flow model is a diagram that is used to represent monetary transactions in an economy. It shows how money, goods, and resources move through a market economy.

The circular flow is the exchange of money between firms and households.

The main factors in the circular flow of economic activity are households (or individuals), firms, and the government.

Learn more about circular flow here

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