Unit 2 Notes - Circular Flow

Notes to Remember -

1. Household - A person or a group of people who share an income

2. Firms - An organization that produces goods and services for sale

3. Factor/Resource Market - The market where factors of production are sold

-Land, Labor, Capital, Entrepreneurship

-Bought by firms and sold by households

4. Product Market - The market in which goods and services are bought and sold