52 flow of economic activity
Post on 19-May-2015
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Why Do We Participate in the Economic System???
Everything we do is connected to the economicsystem in some fashion. Each day we go to work
because the work we provide is in demand in the andthe wages we receive enable us to get the the goods
and services we need to live.
Goods and Services are sold to Consumers
Money is exchanged for goods and services
Business and Gov’t pay individuals for labor
Individuals provide labor for businessesand Gov’t
Government provides services to its citizens
Citizens pay taxes to their government
Participation in Economic Activity is circular in itsnature. Labor is provided for wages and ages areexchanged for goods. However the wages earned
from labor are now gone and the process must beginagain. This process will continuously repeat itself
throughout your lifetime.
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