Circular Flow Model | Definition & Examples
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Circular Flow Model | Definition & Examples
Learn the definition and significance of the circular flow model in economics and how it applies to real life. Understand and be able to apply the circular flow diagram and chart.
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Circular Flow Diagram
Draw a circular-flow diagram. Identify the parts of the model that correspond to the flow of goods and services and the flow of dollars for each of the following activities. a. Selena pays a storekeeper 1 for a quart of milk. b. Stuart earns 8 per hour working at a fast-food restaurant. c. Shanna spends 40 to get a haircut. S. Salma earns 20,000 from her 10 percent ownership of Acme Industrial. | Numerade
Draw a circular-flow diagram. Identify the parts of the model that correspond to the flow of goods and services and the flow of dollars for each of the following activities. a. Selena pays a storekeeper 1 for a quart of milk. b. Stuart earns 8 per hour working at a fast-food restaurant. c. Shanna spends 40 to get a haircut. S. Salma earns 20,000 from her 10 percent ownership of Acme Industrial. | Numerade
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