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ETEC 410

Resources and Circular Flow of Income

Resources

Three Categories in Economics

Resources

Land

Resources

Labour

Resources

Capital

Resources

Also Known as

Resources

Inputs

Resources

Factors of Production

Land

All Natural Resources

Land

All Natural Resources

Labour

Labour

Human Effort and Work

Capital

CapitalMan Made Resources

Factors of Production

Combine to Produce

Goods and Services

Macroeconomic Model

Most Basic Macroeconomic Model

Circular Flow of Income

The Firm

Producer of Goods and Services

The HouseholdProvide of Factors of Production

Consume Goods & Services

Economic Model

Circular Flow of Income

Simple Model

Simple Model – with leakages and injections

Three Sector Model

Four Sector Model

Credits

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