Unless Otherwise Noted All Content © 2022 Florida Virtual School. FlexPoint Education Cloud ™ is a trademark of Flori da Virtual School. Markets and You Module Note Guide Circular Flow Economists use a circular -flow diagram to show economic relationships between people. Sketch a basic circular -flow diagram. Include individuals/households, businesses, and government. Label arrows to reflect the factor market and the product market. The prod uct market is the one where consumers buy goods and services . The factor market is the one where businesses buy the raw materials, labor service, and machinery needed to make goods and services possible . Payment a business receives from customers for its products is account receivable . Explain the differenc e between consumer goods and capital goods. Factors of Production Materials and work that contribute to a product or service are called the factors of production . Complete the chart to identify the four major factors of production . (Some information is provided.) FACTOR TYPE DESCRIPTION EXAMPLE S Land All the natural physical resources necessary to your pr oduct or service Wheat for pizza dough, water, tomatoes , sea sonings Labor Th human work th at goes in to the business physical and me ntal skills Pizza cook, delivery driver, dishwasher , cashier , manager Unless Otherwise Noted All Content © 2022 Florida Virtual School. FlexPoint Education Cloud ™ is a trademark of Flori da Virtual School. Entrepreneurship Intelligences, imagination and ability to take the risks that are needed to start up and maintain a busine ss, a compone nt of labor tools, machinery, supplies Capital The tools humans create to make the business more efficient financial and physical Physical capita l—buildings, land to build on, machines like pizza ovens, vehicles, credit card machine s Financial capita l—the funds to pay for all other resource s All resources ar e scarce . Giving up an activity or item for the activity or item you chose is called a trade off . The leadership and risk -taking of entr epreneurship has costs and is therefore considered by many to be a factor of production Successful businesses must consider all the fa ctors of production . Costs and benefits that encourage you to make a choice or take an ac tion are opportunity cost _. Identify three ways people can safeguard their ideas and inventions through the U.S. government. Explain how the three safeguards you identified above are incentives to produce for people and businesses. Complete the chart f or the acronym HUNT: H Harness your vision Take your idea and really think it out. What do you want to accomplis h? ? What resources will be required ? U Underst
and the roadblo
cks Prevent barriers from stalling action. Find ways around t he barrier whether it is money, discouragement from others, or time . N Networ
ks Find and acquaint yourself with people who can help turn your vision into reality. Networking with other people can make roadblocks disappear . T Take the first step Acting on your vision starts with a sin gle step, and the first is the most difficult. However, once you do, you are more confident to take the second.
and the roadblo
cks Prevent barriers from stalling action. Find ways around t he barrier whether it is money, discouragement from others, or time . N Networ
ks Find and acquaint yourself with people who can help turn your vision into reality. Networking with other people can make roadblocks disappear . T Take the first step Acting on your vision starts with a sin gle step, and the first is the most difficult. However, once you do, you are more confident to take the second.
