Explain two ways in which your own activities are part of the economy’s circular flow. Which part of the circular-flow diagram in Figure 2.2 represents these activities?

Transcribed Image Text:

Goods and services Spending Households Goods, services, and transfers Income Taxes Goods and services Product markets Factors of production Factors of production wwwwwww 300000 Government Spending Goods and services www Factor markets Factor payments Goods, services, and transfers Spending Taxes Factor payments Factors of production Firms