In economics, a circular flow model is a diagram that is used to represent the monetary transactions in an economy.
National income, output, and expenditure are generated by the activities of the two most vital parts of an economy, its households and firms, as they engage in mutually beneficial exchange.
Households
The primary economic function of households is to supply domestic firms with needed factors of production - land, human capital, real capital and enterprise. The factors are supplied by factor owners in return for a reward. Land is supplied by landowners, human capital by labor, real capital by capital owners (capitalists) and enterprise is provided by entrepreneurs.<span> Entrepreneurs combine the other three factors, and bear the risks associated with production.</span>
The single most important influence that shaped the founding of United States comes from John Locke a 17th century Englishman who redefined the nature of government
Enumerated powers are enumerated in some kind of document.
Implied powers are not specifically enumerated in some kind of document, but they would be necessary to fulfill some responsibility.
