The Circular Flow Of Economic Activity

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The Circular Flow Of Economic Activity
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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.

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Microeconomics

• The study of how individuals and firms make
  decisions to allocate scarce resources.

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With your group members

• 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.

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Market
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With your group members

• Brainstorm words that you associate with the word
  market.
• 5 words per group member.
• Write them down.

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With your group members

• Brainstorm a list of things that a business or
  businesses might spend money on.
• Be specific!
• 3 entries per group member.
• Write them down.

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So Far...

• 3 actors in the economy
• Producers
• Consumers
• Government
• Consumers buy goods and services.
• Producers buy the factors of production.

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Obtain a marker board marker.

• Copy the diagram on the board.

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How should the arrows be labeled?

• Discuss with your groups.
• The 1st 3 groups with correctly labeled graphs
  get candy!

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(No Transcript)
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Group Quiz

• Each person should enter answers in on their own
  clicker.

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1) Which numbers show the flow of goods and
services?

• A) 1, 3
• B) 5, 7
• C) 4, 2
• D) 8, 6

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2) Which arrows include Mr. Cooks efforts in
composing this lesson?

• A) 1, 3
• B) 5, 7
• C) 4, 2
• D) 8, 6

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3) Which arrows could include video games?

• A) 1, 3
• B) 5, 7
• C) 4, 2
• D) 8, 6

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4) Which numbers show the flow of interest,
wages, rent, profits?

• A) 1, 3
• B) 5, 7
• C) 4, 2
• D) 8, 6

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5) What do numbers 1, 3, 6, 8 have in common?

• A) Theyre goods.
• B) Theyre services.
• C) Theyre FOP.
• D) Theyre money.