Transcript Lesson Seven: The Circular Flow Model

Unit 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 Target
I Can define and explain in writing the
following key Economic concepts:
Circular Flow Model
(Due End of Next Week)
Unit one Summative Assessment next Week
 Review Day Today
 Summative Assessment (100 pts. 80% category)
Next Tuesday
 You can use a 3” x 5” notecard only
 No notes/note card can be used on re-takes
Crime Riddle
A man was found murdered on Sunday morning. His wife immediately called the
police.
The police questioned the wife and staff and got these alibis:
The Wife said she was sleeping.
The Cook was cooking breakfast.
The Gardener was picking vegetables.
The Maid was getting the mail.
The Butler was cleaning the closet.
The police instantly arrested the murderer. Who did it and how did they know?
It was the Maid.
She said she was getting the mail. There is no mail on Sunday!
(Next day air and email doesn't count)
Crime Riddle
A man walks into his bathroom and shoots himself right between the eyes using a
real gun with real bullets. He walks out alive, with no blood anywhere.
And no, he didn't miss and he wasn't Superman or any other caped crusader.
How did he do this?
He shot his reflection in the bathroom mirror.
Crime Riddle
A cop was walking past a restaurant when he heard someone scream - "No John, not
the gun!"
He ran inside and saw a doctor, a lawyer, a milkman, and a dead body on the floor.
He promptly walked over to the milkman and arrested him.
He didn't witness the shooting and there was no apparent evidence to prove who shot
the person and no one told him who the killer was.
How did the policeman instantly know it was the milkman?
The milkman was the only male.
The doctor and lawyer were females, so the cop knew that
John was the milkman.
Crime Riddle
A woman with no driver's license goes the wrong way on a one-way street and
turns left at a corner with a no left turn sign.
A policeman sees her but does nothing. Why?
The woman is a pedestrian or bicyclist.
Complete one handout per group. I
will assign you a problem and I
want you to share out the solution
your group came up with with the
class.
Economic Reasoning Principles
Used to solve any “Economic Mystery”
1)
2)
3)
4)
Group Members: ___________________________________
Date: _____________ EXIT TICKET 1-7
People choose
People’s choices involve costs
People respond to incentives in predictable ways
People create economic systems that influence
individual choices and incentives
5) People gain when they trade voluntarily, and
6) People’s choices have consequences that lie in the
future.
Now that we’re warmed up, let’s
Try an “Economics Riddle or Mystery”:
(Use the back of the ERP handout)
 Write the question on the back and the answer
 Please use Economic Reasoning Principles
(ERPs) to prove your point.
Why are Disney Theme Parks
Cleaner
and Better maintained than
U.S. National Parks?
We will share out!
Businesses
GOVERNMENT
Mixed Market Economy
A Developing Nation’s Economy
iFuzzy iWuzzy
1
2
1 a. Goods and services (Teddy Bear)
2 b. Consumer expenditures
4 c. Land, labor, cap., entrepreneur
3 d. Rent, wages, interest, & profits
3
4
The “Gangsta Car”
Product Market
Chrysler300
“Gangsta Car
1
2
Which flow represents?
Households
A. Consumer expenditures?
B. Goods and services?
C. Land, labor, capital, and
entrepreneurial ability?
D. Rent, wages, interest,
and profits?
Businesses
Chrysler Plant
Businesse
s
Labor for
3
“Gangsta Cars”
4
Resource Market
$ COSTS
NET TAXES FLOW
TO GOVERNMENT
FROM BUSINESSES
$ INCOMES
GOVERNMENT
GOODS & SERVICES
FLOW TO BUSINESSES
INPUTS
spending
HOUSEHOLDS
BUSINESSES Taxes
GOVERNMENT
GOODS &
SERVICES
$ REVENUE
GOODS &
SERVICES
$ CONSUMPTION
“Circular Flow Model of a Market Economy”
Poster- Individual/Partner Problem Solving activity
 Create a circular flow model poster using
page 40 in the Econ Book(figure 2.3)
 Draw and Label all flow as seen in figure
2.3
 Draw three pictures or icons for:
Household, government and firms.
 Define the following terms on your chart







Household
Firm
Government
Factor Market
Product Market
Monetary Flow
Physical Flow
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 Include a title-color and shade poster
“Circular Flow Model of a Market Economy” Poster
(30 pts.) and three Paragraph essay explanation
of flow model/poster (20 pts.):
Total Points: 50-Summative 80%
Due:
 Day # 1: Friday March 6th
 Day # 2: Monday March 9th
Late: Automatic one grade deduction
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