Recomendados
Mais conteúdo relacionado
Mais procurados
Mais procurados (20)
Destaque
Destaque (20)
Semelhante a Circular flow
Semelhante a Circular flow (20)
Mais de mattbentley34
Mais de mattbentley34 (20)
Último
Último (20)
Circular flow
- 1. The Circular Flow Model EdExcel AS Economics 2.4.1
- 2. The Four Key Parts of the Circular Flow Model External Sector Households Households receive income through wages and salaries from their jobs and investments and they then buy goods and services supplied by firms (consumer spending) Businesses Businesses hire land, labour & capital inputs when making products for which they pay wages and rent. Firms receive payment from consumers (creating revenues and profits) Government Government collects taxes (T) to fund spending on public services e.g. education, healthcare and defence and welfare assistance. State spending is labelled as G The UK buys imports from other countries, (M) and overseas businesses and consumers buy UK products – known as exports (X)
- 3. The Basic Circular Flow Model Households Government Firms Purchases of goods and services £ Demand
- 4. The Basic Circular Flow Model Households Government Firms Purchases of goods and services £ Demand Wages, dividends, interest, profits and rent £ Incomes
- 5. The Basic Circular Flow Model Households Government Firms Purchases of goods and services £ Demand Wages, dividends, interest, profits and rent £ Incomes Taxes Social Transfers
- 6. Domestic Circular Flow of Income & Spending Households Government Firms Purchases of goods and services £ Demand Wages, dividends, interest, profits and rent £ Incomes Taxes Social Transfers Govt Purchases Taxes
- 7. Circular Flow with an External Sector Households Government Firms Purchases of goods and services £ Demand Wages, dividends, interest, profits and rent £ Incomes Taxes Social Transfers Govt Purchases Taxes The Domestic Circular Flow Households Government Firms Rest of the World Imports Exports The External Trade Sector of the Economy
- 8. Injections & Leakages within the Circular Flow Injections Investment Exports of goods and services Government spending Leakages Saving Imports of goods and services Taxation There are three types of injection of extra spending into the circular flow model. There are three types of leakage or withdrawal from the circular flow.
- 9. The Circular Flow Model EdExcel AS Economics 2.4.1