Answer to Question #48033 in Economics for Amber

Question

Relate the concept of the circular flow diagram into the world of the MLB.

Answer 1

The concept of the circular flow diagram is a depiction of how money and products are exchanged within an economy. A circular flow diagram might be used by a business to show how a specific series of exchanges of goods, services and payments make up the building blocks of a given economic system of interest.
As world of MLB is a part of the economy, so most of the economics laws can be applied to understand the proceses inside of it. But instead of exchange of money, products and labour there is an exchange of money, players, coaches, and there is a demand for watcing the match.