1. Circular Flow of Economic Activity

2. Why?
To give you a simplified model of the basic economic relationships in a market economy. This is to show you how households, businesses and government interact in different markets by exchanging goods and services, productive resources (aka inputs or FoP) and money.

3. What?
People participate in the economy in a variety of ways. People make decisions as consumers when purchasing goods and services. They make decisions as producers when providing human and natural resources and savings to allow for investments in capital goods. They also make decisions as citizens/voters that influence the economic decisions made collectively(together) in the economy.
Your going to play a game called “Econoland”
Read the OVERVIEW
Divide the class into two groups – Business and Household
Distribute Materials
Read the instructions for Econoland

4. ECONOFACTORY