This week in class we discussed the circular flow model and the Free Enterprise System. The circular flow model represents the exchanges, interactions and transactions between consumers and producers. It is useful in economics to track transactions and to help improve the interactions between consumers and producers in the future. The second topic we learned about was the Free Enterprise System. The Free Enterprise System is another name for Capitalism. In this economic system anyone is free to start a business. It is based mainly on private ownership and the freedom of businesses to produce whatever they would like. In a free enterprise system, there is balance between consumers and producers. You support whichever products and producers you choose.