2. ECONOMIC FLOW CIVICS CE.12b Mrs. Kozlik

3. Economic Flow (Circular Flow) INDIVIDUAL AND BUSINESS SAVINGS AND INVESTMENTS PROVIDE CAPITAL (MONEY) THAT CAN BE BORROWED FOR BUSINESS GROWTH AND MORE CONSUMPTION

4. ECONOMIC FLOW INDIVIDUALS (HOUSEHOLDS) OWN THE RESOURCES USED IN PRODUCTION, SELL THE RESOURCES, AND USE THE INCOME TO PURCHASE PRODUCTS For example: Person owns 10 acres of trees(resources). He then sells the trees(resources) to a logging company. He then goes to a furniture store and buys a wooden rocking chair (maybe made from the trees he just sold).

5. ECONOMIC FLOW BUSINESSES (PRODUCERS) BUY RESOURCES; MAKE PRODUCTS THAT ARE SOLD TO INDIVIDUALS, BUSINESSES, AND GOVT., AND USE THE PROFITS TO BUY MORE RESOURCES

6. ECONOMIC FLOW GOVERNMENTS USE TAX REVENUE FROM INDIVIDUALS AND BUSINESSES TO PROVIDE PUBLIC GOODS AND SERVICES