INTERACTIONS OF THE COMPONENTS
The ones who pay rent, wages, interest, and profits to the households (employees / individuals) who owns the inputs.
FIRMS
Produces finished goods and services by utilizing available factors of production.
The money consumers earn in exchange for their services.
INCOME
This sector includes businesses that provide services rather than goods
SERVICE SECTOR
Uses their income as a means of consumption.
HOUSEHOLDS
They provide the factor of production by producing or facilitating production of “good or service”.
HOUSEHOLDS
The money firms receive from the goods and services market, earned from the products they sell.
REVENUE
This sector involves farming, fishing, forestry, and livestock.
AGRICULTURE SECTOR
Only finished goods and services are bought and sold in this market.
GOODS AND SERVICES MARKET (OUTPUT MARKET)
This is where finished products and services from firms are distributed.
GOODS & SERVICE MARKET (OUTPUT MARKET)
The money households spend to purchase products and services from the goods and services market.
EXPENDITURES
Comprises small-scale, unregulated businesses that operate without formal recognition by the government.
INFORMAL SECTOR
The ones who collects taxes in exchange of public goods and services.
GOVERNMENT
These markets facilitate the sale of factors of production (intermediate goods) for firms to utilize.
FACTOR MARKET (INPUT MARKET)
Payments made by firms to the factors market for resources like labor, capital, land, and entrepreneurship.
WAGES, INTEREST, RENT, PROFIT
This sector involves the transformation of raw materials into finished goods or infrastructure.
Industry Sector