Unit Of Production

It shows the flow of money through the unit, and the counterflow of goods and services and work.

The unit can represent anything from part of the time of a single worker, to the global economy as a whole.

Its (undrawn) counterparties are the natural environment, from which resources are extracted and to which (mostly negative) externalities are applied. The other production units, the capitalists (who get the profit), and the state (which gets the taxes).

This very basic model is a pedagogical stepstone to introduce more complex concepts later on.