Week 3_1 Circular flow of income

Get to know Basic Concepts:

-- The circular flow diagram shows the transactions among households, firms, governments, and the rest of the world.

* Households are the owners of the factors of production;

* Firms use the factors of production to produce their goods and services;

* Governments are responsible for the provision of public goods and services.

Question: 

Discuss with fellow students in Discussion Forum. 

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