Circular Flow Diagram
Allon Ingram October 29,2015
MORE ABOUT THE Circle of Flow!
A depiction of how money and products are exchanged within an economy. A circular flow diagram might be used by a business to show how a specific series of exchanges of goods, services and payments make up the building blocks of a given economic system of interest.
Functions of Money
Money serves three basic functions: it is a measure of value, it's a store of value,and it is a medium of exchange .
Whats voluntary exchange , Barter , and a market???
BARTER
Bartering is just exchanging or trading without the use of money...
Voluntary Exchange
Voluntary exchange is the act of buyers and sellers freely and willingly engaging in market transactions
market market market
An economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses and there is little government intervention or central planning.