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The Primary concerns of economies are explored by macroeconomics. the most important of these is how economies produce wealth. All Factors of Production in an economy go through a production flow of income or cycle, which creates wealth in the form of factor payments, which are payments made to the factor of production.

What is a circular flow of income?

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Sectors of Circular flow of income 

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1. household 2. Firm

Two Sector Economy, Circular Flow

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1. household 2. Firm 3. Governments

Three Sector Economy, Circular Flow

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1. household 2. Firm 3. Governments 4. Foreign

Four Sector Economy, Circular Flow

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