<Li> First, regulation impedes the flow of income throughout all social classes and therefore economic development . </Li> <Li> Second, taxes on the productive classes such as farmers should be reduced in favor of higher taxes for unproductive classes such as landowners, since their luxurious way of life distorts the income flow . </Li> <P> The model Quesnay created consisted of three economic agents: The "Proprietary" class consisted of only landowners . The "Productive" class consisted of all agricultural laborers . The "Sterile" class is made up of artisans and merchants . The flow of production and / or cash between the three classes started with the Proprietary class because they own the land and they buy from both of the other classes . Quesnay visualised the steps in the process in the Tableau économique . </P> <P> In Marxian economics, economic reproduction refers to recurrent (or cyclical) processes by which the initial conditions necessary for economic activity to occur are constantly re-created . </P>

Explain the concept of circular flow of income