the circular flow of economic activity. answer on a sheet of paper… 1) when you spend money, where...
TRANSCRIPT
Answer on a sheet of paper…
• 1) When you spend money, where do you spend it?
• 2) Think of the sources of income in your household. Where does your household income come from?
• NOTE: List AT LEAST three things for number one.
Microeconomics
• The study of how individuals and firms make decisions to allocate scarce resources.
With a partner
• Look at your lists.
• What do your answers to number 1 have in common with each other?
• What do your answers to number 2 have in common with each other?
• Write these down on one sheet of paper under the headings “#1 in common”, and “#2 in common”.
With your partner…
• Brainstorm words that you associate with the word “market”.
• 5 words per group.
• Write them down.
Market Definition• A market is any place where the sellers of
a particular good or service can meet with the buyers of that goods and service where there is a potential for a transaction to take place. The buyers must have something they can offer in exchange for there to be a potential transaction.
• It does not have to be a physical place…(Internet example)
With your partner
• Brainstorm a list of things that a business or businesses might spend money on.
• Be specific!
• 5 entries per group.
• Write them down.
So Far...
• 3 actors in the economy (it is a circular flow!):– Producers (Firms)– Consumers (Households)– Government (taxes)
• Consumers buy goods and services.
• Producers buy the factors of production.
• It doesn’t matter where you start in the process, it works in a circular flow.
On a separate sheet of paper….
Copy the circular flow diagram on the board.
By the Way, I am going to erase the arrows!!
How should the arrows be labeled?
In other words, which way does Money flow?
Which way does Products flow?
Discuss with your partner….
The 1st 3 students/groups with correctly labeled graphs get
incentive!
Group Quiz
Each student/group should enter answers on their own sheet of paper to turn in at the end. 1
answer sheet per group. Remember both names!
2) Which arrows include Mr.Odren’s efforts in composing a
lesson?
• A) 1, 3
• B) 5, 7
• C) 4, 2
• D) 8, 6
4) Which numbers show the flow of interest, wages, rent, & profits?
• A) 1, 3
• B) 5, 7
• C) 4, 2
• D) 8, 6
5) What do numbers 1, 3, 6, & 8 have in common?
• A) They’re goods.
• B) They’re services.
• C) They’re FOP.
• D) They’re money.