39 in the markets for the factors of production in the circular-flow diagram,
In a market economy, households are the biggest owners of the factors of production . The y own all the labour and entrepreneurship as well as the capital and natural resources (land). Even though bus in esses own the capital goods (build in gs, factories, tools and mach in es), the se bus in esses are, in turn, owned by households through the shares the y ... TYPES OF MARKET IN THE CIRCULAR FLOW MODEL The re are four ma in types of market The goods and services market. The resource market. The money market. The for eign exchange market. THE GOODS AND SERVICES MARKET This is where producers sell f in ished goods and services to consumers. Consumers buy goods and services The circular flow diagram is a basic model used in economics to show how an economy functions. Primarily, it looks at the way money, goods, and services move throughout the economy. In the diagram, ... In the markets for the factors of production in the circular-flow diagram,