Economic Flow

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Economic Flow
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• Individual and business saving and investment
  provide financial capital that can be borrowed
  for business expansion and increased consumption.
• Ex. Using a bank loan to buy a house

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• Individuals (households) own the resources used
  in production, sell the resources, and use the
  income to purchase products.
• Own resources ? sell resources ? make an income ?
  products

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• Businesses (producers) buy resources make
  products that are sold to individuals, other
  businesses, and the government and use the
  profits to buy more resources.
• Purchase resources ? make products ? sell
  products ? use profit

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• Governments use tax revenue from individuals and
  businesses to provide public goods and services.
• TAXES ? provide goods/services

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• Copy chart on p. 429

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