Circular Money Flow Diagram
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Circular Money Flow Diagram

Property OwnersFarmersLaborArtisansEntrepreneursRENTLANDWAGESWORKWORKGOODSCOMMODITIESGOODSGOODSPROFITSCOMMODITIESGOODS
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publish time: 2021-06-29
Vickie

Here is an example of a circular flow diagram that shows the interrelation between government factors, households, and firms. The taxes and other government-owned factors get back to the government, and a part of it gets back to the businesses and households through the services and other expenditures of the government. The circular flow diagram also explains the relation between the product market and the factor market.

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