1. Productive resources, good and services, & money payments
Circular Flow
Productive resources, good and services, & money payments

2. Today’s Agenda
Objective: To understand and describe what the circular flow model represents in the economy.
Essential Skill: Explicitly assess information and draw conclusions.

3. Update
All assignments are as scheduled, except the test will now be Friday
Primaries

4. PPF Questions Answer the questions on the worksheet
You may work with those around you if you want
Be prepared to share your answers

5. Circular Flow Diagram
Create a circular flow diagram using the terms listed on the sheet
Include the * items as the four main players in the economy.
Start by drawing pictures that symbolize the * items, and then label them.
Connect the main players to one another with arrows going both directions.
Use all the other items listed below to label those arrows that connect the main players to one another.
On the back side of the diagram write a story that explains how money and resources and goods flow around the market economy.

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

8. where in the circular flow does the transaction take place?
factor market
product market

9. Christian buys a new Blu-Ray player at a local store.

10. Alexandra earns $8 per hour working a summer job at the spring factory.

11. Evan earns $25,000 in profit from his ownership in a bike shop.

12. Ariana makes Christmas ornaments to sell at a local flea market.

13. JessicaCorp builds a new factory and hires 1,500 new workers.

14. Write these on the back of your circular flow chart
Definitions to Know
Write these on the back of your circular flow chart
Market: is not a place, but a collection of buyers and sellers, wherever they may be
Macroeconomics: the study of the economy as a whole
How economies grow
How economies collapse
How to grow without collapse
Microeconomics: the study of how people make decisions and how those decisions affect others in the economy
Any decision affecting an individual, or a small group/business

15. Micro or Macro?
Answer the following questions to decide if they are examples of macro or micro economics

16. 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, and music!

17. Top Ten Best Selling Products
Play Station
Liptor (blood pressure)
Corolla
Star Wars (all movies included)
iPad
Mario Brothers Franchise
Michael Jackson’s Thriller album
Harry Potter (everything included)
iPhone
Rubik’s Cube