Starter

• What kind of charge does a grand jury bring against an accused person?

• Who defends a poor person in trial when they cannot afford a lawyer?

• Where was the US Constitution written and when was it written?

8.03 Circular flow of economics

Goal 8- the US Economy

Circular flow of economic activity

• Three main actors in economics– Households– Businesses– The government

• All three are interdependent on each other

Three actors

• Households- Provide labor and act as consumers

• Businesses- act as producers and consumers– How are businesses consumers?

• Government- acts as both a consumer and a producer as it promotes structure and regulation.

Economic Flow Chart

Product and Factors Market

• Product market- where goods are sold for final consumption– Shoes for a jogger, pencil for a student– This is where producers earn a profit

• Factors market- goods sold to increase production– Capital goods are sold here– This is where producers invest.