Microeconomics
The Circular Flow
The Three Functions of Money:
Store of Value
Measure of Exchange
Medium of Exchange
Voluntary Exchange - is the act of buyers and sellers freely and willingly engaging in market transactions
Barter - exchange for other goods or services without using money
Market - a group of buyers and sellers, where buyers determine the demand and sellers determine the supply, together with the means whereby they exchange their goods or services is called the market
Circular Flow Description
The diagram shows the flow of money and resources from businesses to households, and from households to businesses.