INSTRUCTIONS Using Exhibit 1.6 in our textotes to help you create your own circular flow model (for you or someone else). Your model may use words, clip art, photos, etc., but should have each of the following components clearly shown/described Household Business An exchange in the Resource Market An exchange in the Product Market After you have made your model, answer the following 2 questions. 1. Why is this model important to know as a consumer or as an employee? 2. Why is this model important to know as a business owner or manager? Households Resource markets Money income (rent, wages, interest profits). Inputs (natural resources, labor, capital, entrepreneurship) Revenues Taxes Inputs Government Public goods and services Taxes (federal, state. local Revenues Public goods and Outputs services, business revenues Outputs Product markets (goods and services) Business revenues Money spent by consumers Costs Businesses Exhibit 1.6 Economics as a Circular Flow (Attribution: Copyright Rice University, OpenStax, under CC-BY 4.0 license)