What Are The Three Basic Flows In The Economy? Production, consumption and exchange are the three main activities of the economy. Consumption and production are flows which operate simultaneously and are interrelated and interdependent. What are the three flows shown in the circular flow model? There are three different phases in circular flow of national
What Flows From Government To Firms? What flows from government to firms? Households receive income from firms. They also receive money from the government (transfers) and must pay money to the government (taxes) . Households spend some of their disposable income and save the rest. What is real flow and money flow? Real flows refer
What Economic Activities Flow From Businesses To Households? What economic activities flow from businesses to households? Businesses sell goods and services to households, earning revenue and generating profits. Businesses also pay wages, interest and profits to households in return for the use of their factors of production. Governments levy taxes on households and businesses in