1. ECONOMIC FLOW
CIVICS
CE.12b
MR. COLLINS & MRS. KOZLIK

2. ECONOMIC FLOW
INDIVIDUAL AND BUSINESS SAVINGS AND INVESTMENTS PROVIDE MONEY THAT CAN BE BORROWED FOR BUSINESS GROWTH AND MORE CONSUMPTION

3. 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).

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

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

6. Attachment H: Circular Flow of the Economy Diagram
Businesses (producers) buy the resources;
make products that are sold to individuals, other businesses, and the government;
and use the profits to buy more resources.
Taxes
Public goods and services
Individuals/households (consumers) own the resources used in production,
sell the resources, and use the income to purchase products.