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Circular Flow Diagram

Government

The government uses the tax money for the equipment and hire people to fix public damaged areas that everyone uses.

Household

Householders pay taxes to the government for them to fix damages. They also buy products to fix damages of property.

Business Firm

Retail department stores like home depot can benefit from flooding because people will buy more products from them to fix their damaged homes. But It can also damage their supplies and stock because their resources could be transported by car need to go around the flooding causing it to be late to them.

The rest of the world it can benefit from it because the U.S. can trade for resources around the world.

Rest Of The World

Factor Market

This is where the business retailers get their equipment or resources for their products.

Factor Market

Financial Markets

The government can sell and buy bonds to get the money they need. The business firms can borrow money for production and have stock for their business or company.

Product Market

The product market gets imports from the retail department and export products to the government, households, and businesses.

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