What is the difference between resource markets and product markets in a circular flow model?

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The resource and product markets are explained in their respective names. They each play a vital role in the cyclical flow of business, but they are distinct and clearly separate. The product market, obviously, deals with products and physical goods. The resource market, on the other hand, deals with resources and the means of production of goods.

For example, let's take a look at the food we eat. Chicken, corn, fish, and the like are all products that we purchase and consume. These are exchanged on the product market. However, there are resources needed to cultivate, grow, or capture these products—most prominently farmers and workers, but also technology, human resources, salesmen, and much more. These people all contribute behind the scenes to creating a product for consumption. They are part of the resource market. Without one or the other, the economy would fail—because they complement and support one another.

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The resource and product markets are both halves of the circular flow...

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