EducationCircular Flow Diagram
A SelectSmart.com Flowchart by Marc
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Seinfeld Circular Flow Diagram

                 
1) The coffee shop receives $7 from Jerry in exchange for a sandwich 2) UA receives $75 from Kramer in exchange for an air ticket
(Revenue)
Markets for Goods and Services: 1) Sandwich market 2) Airfare market
(Spending)
1) Jerry buys a sandwich for $7 at the coffee shop 2) Kramer buys an air ticket from UA for $75









(Revenue)
1) The coffee shop sells sandwiches 2) UA Airlines sells airline tickets (Goods and services sold)
 
1) Jerry buys sandwiches 2) Kramer buys an airline ticket (Goods and services bought)
(Spending)









Firms: 1) Coffee Shop 2) UA Airline 3) Apple 4) NY Yankees
 
 
 
Households 1) Jerry 2) Kramer 3) Elaine 4) George









(Wages, rent, and profit)
3) Apple offers its stock for sale 4) NY Yankees employ workers(Factors of production)
 
3) Elaine invests in stock 4) George provides labor (Labor, land, and capital)
(Income)









3) NY Yankees pay George $5000 monthly for his work 4) Apple pays Eliane $2000 of dividends from profit
(Wages, rent, and profit)
Markets for Factors of Production 3) Labor Market 4) Stock Market
(Income)
3) Elaine receives $2000 of dividends on her Apple stock 4) George receives $5000 monthly for his work at NY Yankees