ECONOMIC SYSTEMS

Circular Flow of Goods and Money in an Economic System

The circular flow of goods and money 

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