NEW SEATS Wait to get your new seat and then take out the Micro vs. Macro Worksheet from yesterday *extras upfront if absent yesterday*

MACRO VS. micro 3. What causes the relative price of the US dollar and the Canadian dollar to change? MACRO 5. How do rent control laws affect the availability of housing in New York City? micro 10. Should the minimum wage be increased? MACRO

ECONOLAND Simulation Activity for Circular Flow

Econoland Agenda ■Objective: To be able to explain the flow of the circular model and the difference between a product market and a factor market ■Essential Skill: Attempt solutions or construct a product

Overview ■Read through the “Overview Section” Activity 10.1 ■½ the room is business and ½ the room is households ■Desk in the middle where I will sit is “Econo Factory”= Where goods are made ■At the end we will assess your success

Read through the Instructions on 10.1 (reverse side) ■Households must sell resource cards for money, then use the money to buy ECONOS –Households will only buy and sell with businesses ■Businesses must pay money for the resource cards, then exchange one NR, one HR, and one CG card for one ECONO with the factory, then sell ECONOS to the households ■You can make any prices you’d like (for resources-households, or ECONOS-businesses) as long as they can be paid with $100 bills

Firm Gov’t Households Taxes Factor Market Product Market Capital, Entrepreneurship, Land, Labor Resources Goods and Services Purchases Revenue Household Income Factor Payment Purchase of goods/services Household income, interest

Discussion-Take out Circular Flow Diagram ■In which market do businesses give money-income payments to households in exchange for their productive resources? –Factor Market ■In markets do households give money payments to businesses in exchange for goods and services? –Product Market ■What did Econos represent in the simulation? –Goods/Services

Discussion-Take out Circular Flow Diagram ■How do individuals and families in households depend on people in business? ■How do businesses depend on individuals and families in households? ■What is the role of government in the circular flow of economic activity?

Discussion ■Give an example of a productive resource that households sell to the government. –Teachers in public schools, use of land, workers for the federal government ■Give an example of a good or service that businesses sell to government. –Computers, communications tools, accounting services, etc ■Give an example of a good or service that government provides to households in exchange for money payments, mainly taxes. –Schools, fire dept., roads, and libraries ■Give an example of a good or service that government provides to businesses in exchange for money payments. –Police, highways, air-traffic control services, disaster services

Organize- Re-setting the Envelops ■Households –Pile up all of your ECONOS in one pile in the front of the room –Separate pile for any money that you have left over –Place 15 resource cards in your envelopes. Have a combination of all 3 resources, but no more than 15 ■Businesses –Pile up any left over ECONOS in one pile in the front of the room –Place extra resources into their separate piles –Take ONLY 10 pieces of money to put back in your envelope –Place your business badge in the envelope as well

Top Ten Best-Selling Products of All Time ■See how many your team can name! ■Hint: products can be movies, books, objects, toys/games, larger items, or music!

Top Ten Best Selling Products 1.Play Station 2.Liptor (blood pressure) 3.Corolla 4.Star Wars (all movies included) 5.iPad 6.Mario Brothers Franchise 7.Michael Jackson’s Thriller albulm 8.Harry Potter (everything included) 9.iPhone 10.Rubik’s Cube

Evaluate ■Use the following terms to write a description about how money, resources, and goods circulate in the economy. HouseholdsPurchases Product MarketRevenue FirmsGoods and Services Factor MarketResources Household IncomeFactor Payment Capital, Entrepreneurship, Land, and Labor