Prince ECO PPT NEW.pptx for the circular flow of income

It states all the details of circular flow of income in the economy

1. The Circular Flow of Income FOUR SECTOR ECONOMY

2. The Circular Flow of Income FOUR SECTOR ECONOMY The circular flow of income model is a fundamental concept in macroeconomics. It illustrates the flow of money and goods and services within an economy.

3. B FIRMS Firms are the producers of goods and services. They demand factors of production and supply goods and services to the other sectors. A HOUSEHOLDS Households are the primary consumers of goods and services. They supply factors of production to firms and receive income in return. TWO SECTOR ECONOMY

4. B FIRMS Firms are the producers of goods and services. They demand factors of production and supply goods and services to the other sectors. A HOUSEHOLDS Households are the primary consumers of goods and services. They supply factors of production to firms and receive income in return.

5. C GOVERNMENT The government plays a role in the circular flow by providing public goods and services, collecting taxes, and redistributing income. B FIRMS Firms are the producers of goods and services. They demand factors of production and supply goods and services to the other sectors. A HOUSEHOLDS Households are the primary consumers of goods and services. They supply factors of production to firms and receive income in return. THREE SECTOR ECONOMY

6. C GOVERNMENT The government plays a role in the circular flow by providing public goods and services, collecting taxes, and redistributing income. B FIRMS Firms are the producers of goods and services. They demand factors of production and supply goods and services to the other sectors. A HOUSEHOLDS Households are the primary consumers of goods and services. They supply factors of production to firms and receive income in return.

7. D FOREIGN SECTOR The foreign sector includes trade with other countries. This includes exports, which inject money into the circular flow, and imports, which leak money out C GOVERNMENT The government plays a role in the circular flow by providing public goods and services, collecting taxes, and redistributing income. B FIRMS Firms are the producers of goods and services. They demand factors of production and supply goods and services to the other sectors. A HOUSEHOLDS Households are the primary consumers of goods and services. They supply factors of production to firms and receive income in return. FOUR SECTOR ECONOMY

8. D HOUSEHOLDS Households are the primary consumers of goods and services. They supply factors of production to firms and receive income in return. C FIRMS Firms are the producers of goods and services. They demand factors of production and supply goods and services to the other sectors. B GOVERNMENT The government plays a role in the circular flow by providing public goods and services, collecting taxes, and redistributing income. A FOREGIEN SECTOR The foreign sector includes trade with other countries. This includes exports, which inject money into the circular flow, and imports, which leak money out.

9. FLOWS OF GOODS, SERVICE, FACTOR OF PRODUCTION GOODS & SERVICES FACTORS OF PRODUCTION FLOWS FROM FIRMS TO HOUSEHOLD FLOW FROM HOUSEHOLD TO FIRMS

10. D FOREIGN SECTOR The foreign sector includes trade with other countries. This includes exports, which inject money into the circular flow, and imports, which leak money out C GOVERNMENT The government plays a role in the circular flow by providing public goods and services, collecting taxes, and redistributing income. B FIRMS Firms are the producers of goods and services. They demand factors of production and supply goods and services to the other sectors. A HOUSEHOLDS Households are the primary consumers of goods and services. They supply factors of production to firms and receive income in return. FLOWS OF INCOME PAYMENT &

11. D IMPORTS & EXPORTS The foreign sector receives payments for exports and makes payments for imports C TAX & TRANSFERS The government collects taxes from households and firms and provides transfers, such as social security payments, to households. B Expenditures on Goods and Services These are payments made by households to firms for the goods and services they consume. A Wages, Salaries, Rent, and Interest These are payments made by firms to households for the factors of production they supply. FOUR SECTOR ECONOMY

12. FOUR SECTOR