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27 August, 07:18

How are producers' payments for resources illustrated by the circular flow of the economy?

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  1. 27 August, 07:44
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    The illustration in a circular flow of economy gives a simple presentation among four factors: households; goods and services market; firms; and factor markets.

    Intervening factors of labor, capital, land, etc. are found in between firms and factor markets and also found in factor markets and households.

    The finished product is a creation of the firms, goods and services market; also the households, and goods and services.

    I think the payments for resources sets in the capital relationship between firms and factor markets.
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