circular flow model - model showing how products and money flow along sectors and markets in the American economy, sectors - categories, that represent a part of a whole., markets - where buying and selling take place, factor market - markets where productive resources are bought and sold., product market - markets where good and services are sold., Consumer Sector - “households” - The sector take part in both the factor and product markets., Business Sector - “businesses” All the companies that produce good and services., economic growth - the increase in a country’s total output of goods and services over time., productivity - the degree to which resources are being used efficiently to produce products., division of labor - breaking down of a job into separate, smaller tasks to be performed individually.,

Circular Flow Assembly Line

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