THE
ECONOMY
CIRCULAR
FLOW
The
____________________
is
a
system
in
which
people
buy
____________________
and
____________________
produced
and
sold
by
businesses
.
There
are
three
economic
____________________
:
households
,
businesses
and
the
state
.
Households
buy
goods
and
services
from
businesses
and
provide
them
with
their
work
.
They
pay
taxes
.
Businesses
produce
and
sell
goods
and
services
.
They
pay
wages
to
the
workers
and
taxes
to
The
State
.
The
____________________
create
laws
to
regulate
the
relationship
between
households
and
businesses
as
well
as
taxes
.
THE
FACTORS
OF
PRODUCTION
They
are
the
resources
used
to
produce
goods
and
services
.
There
are
three
types
:
land
,
labour
and
capital
.
Land
resources
are
the
ones
found
in
nature
.
Examples
:
water
,
air
,
minerals
,
plants
and
animals
.
Labour
resources
are
the
people
needed
to
develop
the
process
of
production
of
goods
and
services
.
The
____________________
is
the
person
who
comes
up
with
and
idea
for
a
business
and
brings
the
rest
of
the
factor
together
.
Capital
resources
are
the
man
-
made
resources
used
to
produce
goods
and
services
.
Inside
this
category
we
can
find
:
Capital
goods
:
the
____________________
,
computers
,
tools
,
factories
,
etc
.
Financial
capital
:
the
money
invested
.
Technological
capital
:
the
technological
resources
like
the
sofware
or
Internet
sites
.
