Simple squamous epithelium is found lining the air sacs (alveoli) of the lungs, blood vessels (endothelium), lymphatic vessels, and body cavities such as the pericardial, pleural, and peritoneal cavities (mesothelium). It also lines structures like the glomeruli in the kidneys and certain reproductive organs. This type of epithelium is characterized by a single layer of flat, thin cells that facilitate passive diffusion and filtration of gases and small molecules due to its minimal barrier properties.