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6.01 Circular Flow Diagram

Water Pollution

By: Oghenemarho Avworo

The government can lend money from financial markets to create jobs and programs to promote clean water, and prevent water pollution.

Government

The government buys all the supplies needed to get filtered and safe water.

Households can invest in the financial markets by buying stocks or shares in the companies.

The government regulates the water to ensure that everyone has clean water to prevent illnesses.

The taxes individuals pay help to continue the programs for clean water.

Workers in companies produce clean water and promote the awareness.

Buying bottled water for the market.

Household

Financial Market

Factor Market

The factor market manufactures machines to help factories continue producing clean water.

Product Market

Household buy water that is safe to drink.

Business pay the market for goods and labor and produce clean water.

Businesses borrow money from the financial market to get more machines and workers to make the production efficient.

Business Firms

Businesses gain more than they usually would.

Companies put water into the market to sell to people.

Financial market allows businesses to borrow money to produce cheap goods and services for clean water.

Exports include clean and healthy water to the rest of the world.

Rest of the World

Financial markets borrow money and buy stocks in companies, in order to expand and produce more water.

Imports include cheaper and cleaner plastic bottles to make production easier.

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