Households
Own resources and buy products
Georgia Study SkillsFinance & Economics
Learning supports
ADVANCED FINANCE & ECONOMICS STUDY GUIDE
See the economy move in a circle.
Explore how households, businesses, government, banks, and global trade exchange money and resources—one clear step at a time.
INTERACTIVE MODEL • SELECT A FLOW
The circular flow, in motion.
Use the controls to isolate one idea at a time.
Resourcesland • labor • capital
Incomewages • rent • interest • profit
TWO CONNECTED MARKETSResource Market↕Product Market
Spendingconsumer purchases
Productsgoods • services
Businesses
Hire resources and sell products
FOUNDATION • FOUR STEPS
Build the basic loop first.
Each step connects a real flow with a money flow.
Households offer resources
People provide land, labor, capital, and entrepreneurship.
Businesses pay income
Firms pay wages, rent, interest, and profit.
Businesses sell products
Firms provide goods and services through the product market.
Households spend
People use income to purchase the products they need and want.
ADVANCED LAYER • FIVE-SECTOR MODEL
Now widen the circle.
Add government, financial markets, and the rest of the world to explain how spending can leave and re-enter the flow.
Taxes ↔ public spending
Government redirects part of the flow.
Households and businesses pay taxes. Government injects money back into the economy when it buys goods and services, pays employees, and funds public programs.
LEAKAGESS + T + M
INJECTIONSI + G + X
EQUILIBRIUMS + T + M = I + G + X
ADVANCED SIMULATOR
Balance the wider economy.
Move the sliders and observe how the economic pressure changes.
GUIDED NOTES • COMPLETE AT YOUR PACE
Build the flow in words.
Choose one answer for each sentence. Foundation and advanced ideas are included.
KNOWLEDGE CHECK • FOUR QUESTIONS
Can you follow the wider flow?
Answer every question, then check your score.