Term
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Macro Lesson 5B
Circular Flow
Term | Definition |
---|---|
Circular flow: | The continuous movement of money, goods, and services between households and businesses in an economic system. |
Household: | A group of people living together and sharing resources, typically a family. |
Business: | An organization or entity engaged in commercial, industrial, or professional activities to produce goods or services in order to earn a profit. |
Goods: | Physical objects that are produced and can be bought or sold, such as clothing, electronics, or food. |
Services: | Intangible activities performed by people or businesses for the benefit of others, such as healthcare, transportation, or education. |
Resource: | Something that is used to produce goods or services, such as natural resources (land, water, minerals), human resources (labor, skills), or capital resources (machinery, equipment). |
Interdependence: T | he mutual reliance and interconnectedness of individuals, groups, or systems, where actions or changes in one part affect others. |