Warm-up
On a piece of paper, describe
how you think individuals
(consumers), businesses
(producers), and the government
interact with each other in
today’s economy.
,The Circular Flow Model
How Things Work in a
Mixed-Market Economic System
,In our economic system there are two sectors
the business sector and the household sector
, Households
• Demand consumer
goods, like: cars,
computers, washers,
lawnmowers, etc.
• Households provide
labor resources to
business and own
most of the resources
of production
On a piece of paper, describe
how you think individuals
(consumers), businesses
(producers), and the government
interact with each other in
today’s economy.
,The Circular Flow Model
How Things Work in a
Mixed-Market Economic System
,In our economic system there are two sectors
the business sector and the household sector
, Households
• Demand consumer
goods, like: cars,
computers, washers,
lawnmowers, etc.
• Households provide
labor resources to
business and own
most of the resources
of production
