Circular Flow Graph The big picture demonstrates the flow of economy as a whole. Household- person or a group of people that share an income. Firms- organization that produces goods and services for sale Factor (Resource) Market -the market in which the factors of production (land, labor, capital, and entrepreneurship) are bought by firms and sold by households. Ex: if you go somewhere you expect to get paid. Giving your time and service. Product Market- market where goods and services are bought and sold. Factor payments: 1) land- rent 2) labor- wages 3) capital- interest 4) entrepreneurship- profits Student buying a hamburger is product market for buying goods Business paying rent is factor payment so ot is a factor market. Firm selling t shirts is a product market