Explanation:
This is circular flow model with three agents ; customers , governments and businesses.
There are two markets ; Goods and services market and factor market.
The two types of transaction are resources or monetary transaction.
▼ you buy a coffee at starbucks : It is a trade between companies, households with commodities and households. This is achieved via the demand for goods and services.
▼ the government buys some dell computers : This is the exchange of the money market between the government and goods and services. Assets are transferred from government to market for goods and services.
▼ a student works at kinko : The transaction includes the demand element from the household to the resource sector. It is a financial transaction between companies and households.
▼ donald trump rents a building to marriot hotels: It is a monetary transaction across the factor network from business to households. This is indeed a resource transaction between households and companies via the factor market.
▼you pay your income tax : This is indeed a money transaction between households and government.
