Final answer:
In a capitalist system, money flows from investors into materials and labor costs, generating profits and promoting economic growth.
Step-by-step explanation:
In a capitalist system, the main flow of money is from investors into materials and labor costs, which generates profits for more manufacturing ventures. This is related to the concept of capitalism, an economic system characterized by private ownership and the pursuit of profit.
Under capitalism, individuals invest capital in businesses to produce products or services that can be sold in a market. Investors receive a share of the profit made on sales after production and distribution costs are deducted. These profits can be reinvested to improve and expand the business.
For example, Sarah, Antonio, and Chris invest in a start-up company and receive a return on their investment from the company's profits. Sarah reinvests, Antonio supports another start-up, and Chris uses the return to buy a yacht. This demonstrates how the flow of money in capitalism leads to economic growth and wealth creation.