Unit 1: Lesson 2 What is an Economy?

JA BizTown -a community- a place where you will work, trade, and share. At JA BizTown you will become producers, work in businesses, and be consumers.

Economy: a system of production, consumption, and distribution of goods, services and resources.

Circular Flow Chart

Goods & Services

Circular Flow Chart Goods & Services Money

Resources: Things and people used to produce goods and services

Resources: Human Natural Capital

Human Resources: the skills and abilities of workers used in production.

Natural Resources: things used in production that occur naturally in the world, such as water.

Capital Resources: resources made by people, such as factories.

Circular Flow Chart Resources Goods & Services Money

Circular Flow Chart Resources Money Goods & Services Money

Market: a system in which people and businesses by and sell goods, services, and resources.

Circular Flow: a model of the movements of goods, services, resources, and money in an economy. Resources Money Goods & Services Money