Circular Flow Model Economics Created by Michelle Woods SIOP Curriculum Writer, WCPSS

Sectors of the Circular Flow Model business Consumers government

The B usiness and C onsumer S ectors Consumers Make Money Consumers Spend Money Product market Businesses Make More product from the money received

The G overnment S ector City government State governmentfederal government Use income from services to purchase goods from the product markets

C ircular F low M odel F oreign S ector We buy and sell products from and to countries around the world.