1. Today’s Warm Up
How is my life affected by how well the economy is doing?
How do you know how well the economy is doing?
Be ready to share!

2. Where We’re Headed…
From MICROeconomics to MACROeconomics

3. Economic Interdependence
Unit Essential Question: How can economic stability be achieved?
Today’s LEQ: Why is our economy interdependent?

4. Economic Interdependence
People participate in the economy in a variety of ways
People make decisions as consumers when they purchase g/s
People make decisions as producers when:
They provide human & natural resources to businesses
Their savings allow businesses to borrow to make investments in capital goods
People make decisions as citizens, especially as voters, that influence the economic decisions made collectively in the economy
ECONOLAND SIMULATION

5. ECONO FACTORY

6. Visual 10.1: Circular Flow of Productive Resources, Goods & Services, and Money Payments

7. ECONOLAND Recap: A/B Partners
According to the diagram, in which markets do businesses give money-income payments to households in exchange for their productive resources?
In which markets do households give money payments to businesses in exchange for goods and services?
What did Econos represent in the simulation?

8. Visual 10.2: Government in the Circular Flow

9. A/B Partners
Give an example of a productive resource that households sell to government.
Give an example of a good or service that businesses sell government
Give an example of a good or service that government provides to households in exchange for money payments, mainly taxes.
Give an example of a good or service that government provides to businesses in exchange for money payments.

10. Economic Interdependence
The U.S. economy is organized around a system of private markets
Prices for g/s are determined by the interaction of buyers and sellers
This form of economic activity creates a type of interdependence between people in households and people in businesses

11. Circular Flow Collage
Recreate the circular flow diagram on your poster paper by finding examples within newspapers & magazines of the circular flow actions taking place
Include both real flows (a picture of someone getting a haircut or purchasing goods at a store) and money flows (an arrow showing the flow of money)

12. A/B Partners
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?

13. Case Study – Jigsaw Activity
Groups of four (two sets of A/B partners)
Each person reads one current event article & determines how one event may affect the economy as a whole
Each person will share and discuss their findings with the rest of the group
After the discussion is complete, your group should complete the provided graphic organizer
In column 1, the headline should be written
In column 2, the group should provide a concise explanation of how this event could impact at least two sectors of the economy
In column 3, the group should provide evidence presented in the article to support their conclusion

14. Today’s Exit Ticket
Provide a formal response to today’s LEQ: Why is our economy interdependent?