DECISION MAKING UNITS CONSUMPTION and PRODUCTION.

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Presentation transcript:

DECISION MAKING UNITS CONSUMPTION and PRODUCTION

Market 1. an open place or a covered building where buyers and sellers convene for the sale of goods; a marketplace: a farmers' market. 2. a store for the sale of food: a meat market. 3. a meeting of people for selling and buying. 4. the assemblage of people at such a meeting. 5. trade or traffic, especially as regards a particular commodity: the market in cotton.

MARKETS RESOURCE / FACTOR MARKET PRODUCT / OUTPUT MARKET WHERE FIRMS/BUSINESSES BUY THEIR RESOURCES WHERE FIRMS/BUSINESSES SELL THEIR PRODUCTS TO HOUSEHOLDS

FIRM’S PERSPECTIVE

HOUSEHOLD’S PERSPECTIVE

ECONOMIC CIRCULAR FLOW

GOVERNMENT INVOLVEMENT GOVERNMENT

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