Circular Flow Model
von Mark A Sutton
1. Households
1.1. Individuals or groups living together
1.2. @ 121 million in the US
2. Firms
2.1. organize the production of goods & services
2.2. @ 28 million firms in the US
3. Factor Markets
3.1. Where the services of factors of production are bought & sold
3.2. Factors of Production
3.2.1. Natural resources
3.2.2. Labor
3.2.3. Capital
3.2.4. Entrepreneurship