Markets Unit 3
by Ameitra Snell
the circular flow
The circular flow of income or circular flow is a model of the economy in which the major exchanges are represented as flows of money, goods and services.
voluntary exchanging
the act of buyers and sellers freely and willingly engaging in market transactions.
market
a regular gathering of people for the purchase and sale of provisions, livestock, and other commodities.
functions of money
Money serves four basic functions: It is a unit of account. It is a medium of exchange. It is a store of value. It's a standard of deferred payment.
medium of exchange
something commonly recognized in a country or community as a standard of value and used in the same way as money.
store of value
something such as money that keeps its value and can be accepted as payment for a current purchase or for a purchase at a future date
measure of value
one of the basic functions of money, by which it is the means of expressing prices in an economy.