ECONOMIC SYSTEMS

on

Circular Flow of Goods and Money in an Economic System

The circular flow of goods and money 

The Flow of Goods, Services, Resources, and Money Payments in a Simple Economy


Fig. 1.1: The Flow of Goods, Services, Resources, and Money Payments in a Simple Economy

How the Circular Flow of Goods and Money Works

  • Input Markets
  • Output Markets

Types of Economic Systems

Capitalism, Socialism, and Mixed Economy.

a) Capitalism (Market Economy)


b) Socialism (Command Economy)


c) Mixed Economy