Grade 9 EMS The Circular Flow

The factor of production "Entrepreneurship" is rewarded by rent.

Businesses must pay company tax to the government.

The government get their income from voting.

Real flow is the flow of goods and services and factors of production.

Households and businesses save their extra money in the financial market.

An closed economy is also called a 4-sector model.

A closed economy does not include the foreign sector.

Households are the prime economic participants.

Factor market is where households sell their factors of production.

The price of goods and services is determined by the government.