Circular Flow Diagram and Division of Labor

The flow of money, goods, and services between households and firms in an economy

Allocating different tasks among workers to specialize in specific tasks, leading to increased productivity.

Domestically produced goods and services sold in foreign markets.

<p>Increasing interconnectedness of markets across national borders.</p> Signup and view all the answers

<p>Producing the maximum output with given resources.</p> Signup and view all the answers

<p>By showing the continuous flow of money, goods, and services between households and firms.</p> Signup and view all the answers

<p>Government policies related to spending and taxation to influence the economy</p> Signup and view all the answers

<p>The marketplace where firms sell and households buy goods and services produced.</p> Signup and view all the answers

<p>Products made abroad and sold domestically.</p> Signup and view all the answers

<p>Total production in an economy.</p> Signup and view all the answers

<p>The market where households supply their labor to businesses or employers.</p> Signup and view all the answers

<p>An economy where economic decisions are decentralized and businesses respond to demand.</p> Signup and view all the answers