Change: The circular flow model is a good way of showing the flow of goods and services in a market economy, but not for a mixed   View changes from previous version. (Word count: 26)

Change:  For example: I pay rent for my house; I work in a factory for $4 a day. Product Market: Where the goods and services of businesses are bought and sold Businesses - sell the goods and services (collectively known as output) they produced from the resources they bought Households -   View changes from previous version. (Word count: 372)

Change:  → Firms. In return, Firms → Payments to factors (wages, rent, interest, profit) → Income → HouseholdsProduct Market Firms → Output → Product → Households Households → Expenditures → Revenues → Firms**It's important to realize that everything in the circular flow chart is all happening at once.   View changes from previous version. (Word count: 241)

Change: housewholdshouseholds meet to exchange resources or productsResource Market: Where the resources and services of resource suppliersowners are bought and sold Households (people) - sell resources Businesses (firms) - purchase resources The costs to businesses become the income (WIRP*) for households. The income the   View changes from previous version. (Word count: 224)

Change: consumers Firms = producers Households → The FourFactor Resourcesof production (labor, land, capital, profit) → Firms. In return, Firms → Payments to factors (wages, rent, interest, entrepreneurship) → Income → HouseholdsProduct Market Firms → Output → Product → Households Households → Expenditures → Revenues → Firms   View changes from previous version. (Word count: 224)

Change:  profit) --->→ Firms. In return,Firms --->→ paymentsPayments to factors (wages, rent, interest, entrepreneurship)--->entrepreneurship) → Income income--->→ HouseholdsProduct MarketFirms--->Firms output→ --->Output product--->→ householdsProduct → HouseholdsHouseholds--->Households expenditures--->→ revenues--->Expenditures firms→ Revenues → Firms   View changes from previous version. (Word count: 186)

Change: Businesses and households are both buyers and sellers; businesses buy resources and sell products, and households buy products and sell resources.Trade between Resource and ProductResource MarketHouseholds = consumers Firms = producersHouseholds ---> The Four Resources (labor, land, capital, profit) ---> Firmsin return,Firms --->   View changes from previous version. (Word count: 186)

Change: (work) for the businesses.Product Market:Where the goods and services of businesses are bought and sold- Businesses - sell the goods and services (collectively known as output) they produced from the resources they bought- Households - buy the goods and services (known as products)The costs   View changes from previous version. (Word count: 144)

Change: for businesses.Trade between Resource and ProductResource Markethouseholds = consumers Firms = producersHouseholds ---> Resources (input) ---> Firmsin return,Firms ---> payments to factors (Labor- wages, Land- rent, Capital- interest, Profit- entrepreneurship)---> income---> HouseholdsProduct MarketFirms---> output ---> product---> householdsHouseholds---> expenditures---> revenues---> firms   View changes from previous version. (Word count: 118)

Change:  for households.Product Market:Where the goods and services of businesses are bought and sold- Businesses - sell the goods and services they produced from the resources they bought- Households - buy the goods and servicesThe costs to households become the sales revenue for businesses.   View changes from previous version. (Word count: 77)