ETEC 410
Resources and Circular Flow of Income
Resources
Three Categories in Economics
Resources
Land
Resources
Labour
Resources
Capital
Resources
Also Known as
Resources
Inputs
Resources
Factors of Production
Land
All Natural Resources
Land
All Natural Resources
Labour
Labour
Human Effort and Work
Capital
CapitalMan Made Resources
Factors of Production
Combine to Produce
Goods and Services
Macroeconomic Model
Most Basic Macroeconomic Model
Circular Flow of Income
The Firm
Producer of Goods and Services
The HouseholdProvide of Factors of Production
Consume Goods & Services
Economic Model
Circular Flow of Income
Simple Model
Simple Model – with leakages and injections
Three Sector Model
Four Sector Model
Credits
Flash Animations provided by
http://www.s-cool.co.uk/alevel/economics/aggregate-demand-and-aggregate-supply/the-circular-flow-of-income.html