Circular Flow & Money

2 sector model showing how businesses & households interact

A finished product used by an individual for personal use.

Part of the economy where labor & resources are sold

A product that can be used to satisfy a want or need.

Section of the economy made up of individuals or families

Where buyers and sellers learn information from one another and voluntarily exchange goods, services, & money

Describes the state of a market with respect to competition

Function of money in which any item is widely accepted in the exchange of other goods or services

lowest amount which can legally be paid to an employee

Anything that is legally accepted payment for goods and services.