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06.01: Economic Relationships

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by

Sarah Gonzalez

on 14 September 2014

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Transcript of 06.01: Economic Relationships

Government
Households
Product Market
Factor Market
Financial Market
Rest of the World
Business Firms
Governments would need funds to be able to provide programs for preventing water pollution. Also, they would need more funds for promoting and advertising the importance of keeping Florida waters clean
The government would need to purchase
goods, such as water filter systems--
to filter in clean water--, from these product
markets.

People pay taxes so the government is able to regulate water pollution
The government regulates the water used in households to ensure the water is not contaminated with diseases.
People buy bottled water from super markets for consumption. People might also buy their own water filter, such as the BRITA filters, to purify their water.
Other countries around the world create the plastic used for water bottles and some of the parts used for filter systems.
Countries might import cleaner and more purified water from the US.
Companies get products from these business firms, like pure water brands, to sell after they have gone through inspection.
The business firms receive revenue from the markets selling their pure water goods.
Households can purchase food and other resources with assurance the products will not be contaminated.
Business firms receive the factors of production needed in order to clean and purify water.
In exchange for the land, capital, and labor the business firms received, the factor market gains money to make more of the machinery the business firms need.
The firms are able to borrow money and invest in stocks to make more money to help their business grow and continue purifying water.
The financial markets give loans and possibly stocks to foreign companies who are also working to purify their water supply.
There is the possibility of some countries taking advantage of the financial market by taking out loans to better improve their economic situation while, at the same time, producing more goods to help clean the water supply.
Families can purchase stocks from here, donate to water pollution charities, or even take out a loan to start their own charity.
People who work in the factories causing the pollution or are in the organizations helping reduce pollution are part of the labor force.
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