In the circular flow model, the market economy creates continuous, repetitive flows of goods and services, resources and money. In this model, households spend income in the product market. According to the circular flow model, households buy the goods and services that businesses make available in the product market. Moreover, In the circular flow model, businesses will buy resources from and sell products to households and other businesses. In this way: The function of businesses in the circular flow model is purchase resources and sell products.
<span>the equilibrium point. In general, for any good, it is at this point that quantity supplied equals quantity demanded at a set price.</span><span>
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Services provided by the government include:
education.
social services.
roads and transport.
waste disposal.
economic development.
countywide planning and the environment.
protecting the public.
libraries.
