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EconomicsMr. KirbyCHSUnit 1: Lesson 7Circular Flow Model

Concentration on these slides is guarantied to improve your economics grade.

Warning2Unit One: Learning Objectives:North Clackamas School District Social Studies Priority Standards:Econ 53. Describe characteristics of command, market, traditional, and mixed economies and how they affect jobs and standards of living.Econ 59. Demonstrate the skills and dispositions needed to be a critical consumer of information.

Lesson Seven: Daily Learning TargetI Can define and explain in writing thefollowing key Economic concepts: Circular Flow Model

We will be using Cornell Note Taking Format Today! Mr. Kirbys Class: The world of overused quotes and clichs! There Aint No Such Thing

as a Free Lunch!

Take one step at a time to success in Economics!

The Circular Flow

GOVERNMENT

Householders

Businesses

The Circular Flow is an abstract, oversimplified model, showing how economic transactions [resources, products (g/s), and money] take place.The Circular FlowProducts[goods/services]Resources[Land, labor, cap., ent.]a. Goods and services[iFuzzy]b. Consumer expendituresc. Land, labor, cap., entrepreneurd. Rent, wages, interest, & profits

1234

1243iFuzzy iWuzzy7

The Gangsta Car

BusinessesProduct MarketResource Market

Which flow represents?A. Consumer expenditures?B. Goods and services?C. Land, labor, capital, and entrepreneurial ability?D. Rent, wages, interest, and profits?Households342143Labor for Gangsta CarsChrysler300 Gangsta Car2

Chrysler Plant

1

Circular Flow85BUSINESSESHOUSEHOLDSRESOURCESINPUTS$ COSTS$ INCOMESPRODUCTMARKETGOODS &SERVICESGOODS &SERVICES$ CONSUMPTION$ REVENUEGOVERNMENTRESOURCEMARKETNET TAXES FLOWTO GOVERNMENTFROM BUSINESSESGOVERNMENTGOODS & SERVICESFLOW TO BUSINESSESTaxesG/S

GOVERNMENTS ROLE in a Mixed Economy9Your group is building a new zoo.You have to decide what animals to have.Space is limited. You get 25 acres.Take 8-10 minutes to make your selections, based on the next slide.Each group will be given a copy of slide 5. Use pencil in case you need to erase.

The Apprentice: Challenge #6We Bought a Zoo

Lion - 2 acresTurkey - 1/10 acreGiraffe -1 acreSeal - 1/2 acreCamel - 1/2 acreCheetah - 1 acreCow - 1/3 acreMonkey - 1/2 acre

Asian Elephant - 1 acreAfrican Elephant - 1.5 acresReptile House - 5 acresHammerhead Shark - 1/2 acreKangaroo - 1/2 acreTiger - 1 acreWhales - 3 acresHouse of Birds - 5 acres

*Numbers are acres required for ONE animal (hint: they dont like being alone!)[If you had 2 of each, it would take over 34 acresso you will have to make choices.]Zoo Choices 25 acres total Lion - 2 acres; Turkey - 1/10 acre; Giraffe -1 acre; Seal - 1/2 acre; Camel - 1/2 acre; Cheetah - 1 acre; Cow - 1/3 acre; Monkey - 1/2 acre; Asian Elephant - 1 acre;African Elephant - 1.5 acres; Reptile House - 5 acres; Hammerhead Shark - acre;Kangaroo - 1/2 acre; Tiger - 1 acre; Whales - 3 acres; House of Birds - 5 acres.

*Numbers are acres required for ONE animal (hint: they dont like being alone!)[If you had 2 of each, it would take over 34 acres so you will have to make choices.]25 Acres Two tigers Two sealsTwoAsianelephants Two monkeys

To get you started here are some examples of what you might do!

This would have taken care of 7 of the 25 acres. 18 more to go!

Two camels

Remember that 2 of eachhelps future zoo stock.

25 Acres 1. Why didn't your group put one of every animal in the zoo?

2. We had a TINSTAAFL problem! Explain:

3. Why didn't your group put a turkey in your zoo?

4. Why didn't your group have a zoo with only monkeys?

5. Why did your group choose an Asian elephant and not an African elephant?

Questions 6. What was the last animal to make the cut for your zoo?(Marginal Analysis)

7. What was the animal that just missed the cut for your zoo? (That animal is the opportunity cost [opportunity lost]

8. What animal did everyone in your group agree to include ___?

9. Explain how this exercise relates to the follwing concepts: Scarcity, Tradeoffs, Opportunity Cost in a well written paragraph below:

After you complete the Quiz:Circular Flow Model of a Market Economy Poster-Problem Solving activity #4

Create a circular flow model poster using page 40 (figure 2.3)Draw and Label all flow as seen in figure 2.3Draw three pictures or icons for: Household, government and firms.Define the following terms on your chart HouseholdFirmGovernmentFactor MarketProduct MarketMonetary FlowPhysical FlowInclude a title-color and shade poster Circular Flow PosterRubric EXCEEDING 5PROFICIENT4PROGRESSING3.5EMERGING3Excellent- final draft, quality. Very creative, all components present including colored/shaded pictures (3) , detailed information. Flow is correct and definitions detailed and complete.

Futures Possibilities realized!

Good- final draft, quality. Creative, all components present including colored/shaded pictures (3) , detailed information. Flow is correct and definitions complete.

At the Frontier!

Efficiently run business!.

Good - final draft quality-all components present including pictures (3) ,.JUST THE FACTS MAN!

Barely efficient

Much work to be done to make this business work!

O.K.-A draft-all components present including pictures (3) , information.Bare minimum

UnderutilizationOf talent and production capabilities!