Principles of Microeconomics / Unit 1 MIC 0010 short lesson, about 20 seconds
The Circular Flow: Product and Factor Markets
Captions available
The idea
The circular flow puts households and firms in two markets. In the product market firms sell and households buy; in the factor market households sell labor, capital and land for income.
In practice
Goods travel one way around the circle; payments travel the other.
Where people slip
Product markets fill most of this course; factor markets return in units three and thirteen. Both come from this diagram.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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