M.3 Unit 3 The Circular Flow Model

​1. Describe the circular flow model

​2. Identify the sectors in the circular flow model

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1. Household - are economic units formed by living together in one house , such as family

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2. Businesses​ - are economic units that produce goods and services for sale

• The third unit or sector in the circular flow model.

• It collects taxes from households and businesses

• The ​government uses the collected taxes to provide public utility goods that are available for everyone to use

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​3. Government

A representation of the movement of products, resources and money in an economy between three economic sectors, namely households, businesses and government

1. 1 Resource market- is where households sell the factors of production (land, labour, capital), that is, their skills, and assets, to businesses

Some text here about the topic of discussion

1. 2 product market - is where businesses sell finished goods and services to households