12+ Circular Flow Model. This model divides the market into two. In this video i explain the circular flow matrix and how products, resources, and money flow in a market economy.
The circular flow model of the economy distills the idea outlined above and shows the flow of money and goods and 5 factors not in the circular flow model. This model divides the market into two. The continuous flow of money between these sectors.
Households have the means of production.
12+ Circular Flow Model. In our economic system there are two sectors the business sector and the household sector. It's not overly complicated, but there are some key things you should know about it. The circular flow of income is a model of the economy in which the major exchanges are represented as flows of money, goods and services, etc. What the circular flow model tells us is that three basic elements of the econmy will work and interact together to ensure that our needs and wants are.