Mine didn't totally fit on the screen, but I think we're gonna be okay. So here we have an empty circular flow diagram um and we're gonna fill it in now. Uh They take the factors of production, they take the resources that are sold by the households and they turn it into goods and services. Uh So next we have the firm and the firm is an organization that produces goods and services. So in the end the households own all the factors of production, they own the resources. Well, the idea is that in the end the households own those companies, right? It's actually people who own the companies that own the land. Okay, and you might think, hey there's firms that I know um companies that own the land that they're building is on. Excuse me, households own the factors of production, they own the resources, I'll put resources. Own the factors of production, households. And a quick note, I want to say, is that the households Mhm. So let's go ahead and define what the household and the firm are, and then we'll move down into the diagram first we have households and households we define as a person or a group of people that share income, they don't necessarily have to be related, they just have to share income. The circular flow diagram, it's a model that illustrates the relationship between firms households, goods and services and the factors of production. Alright, so now we're gonna look at a diagram that helps us simplify the inner workings of an economy.
0 kommentar(er)
