Circular Flow Word Scramble
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| Term | Definition |
| Allocation | distribution of available resources |
| Incentive | the hope of reward or fear of penalty that encourages a person to behave in a certain way |
| Factor payment (resource payment) | the income people receive in return for supplying factors of production |
| income | earning from works |
| circular flow | a model show the interactions between households and firms in the free market |
| profit | a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something. |
| firm | an organization that uses resource to produce a product or service, which it then sells |
| free market economy | an economic system characterized by private or corporate ownership of capital goods |
| household | a person or group of people living in a single residence |
| market | any arrangement that allows buyers and sellers to exchange things |
| product market | the arena of exchange in which households purchase goods and services from firms |
| productive resource | Basic resources used to produce goods and services: natural resources, human resources, capital resources, and entrepreneurial abilities. |
| who is buyer in a product market | households |
| who is buyer in a factor market | firms |
| who is seller in a product market | firms |
| who is seller in a factor market | household |
| who gets money in a product market | household |
| who gets money in a factor market | firm |
| who gets stuff in a product market | firm |
| who gets stuff in a factor market | household |
Created by:
lesterstoffels
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