Circular Flow of the Economy
By Mayra & Tahjanai
The Factor Market
The factor market is when a person has an idea or an invention and wants to produce more of there goods or invention. If you sell your labor to the government then you get paid by taxes.
Businesses make products to sell in the product market. They are also considered consumers because they need supplies and material to make the product goods.
The product market then sells the goods to the consumer. They also can trade goods to foreign countries.