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Circular Flow Diagram

Transcript: The political direction and control exercised over the actions of the members, citizens, or inhabitants of communities, societies, and states. Imports Government transfers Gross Domestic Product (GDP) A group of people that share a dwelling and their income (a household may also consist of one person). The banking, stock, and bond markets, which channel private savings and foreign lending into investment spending, government borrowing, and foreign borrowing. Taxes Rest of the World Government Markets for Goods and Services Government borrowing Organizations that produce goods or servcies for sale. Miranda Mckenrick & Jordan Ferree Borrowing and stock issues by firms Private savings Foreign lending and purchase of stock Markets in which households buy goods and services from firms. Financial Markets Foreign borrowing and sales of stock Every country or nation except for the United States. Markets in which firms buy factors of production (resources needed to produce goods or services). Government purchases of goods and services Investment spending Consumer spending Households Exports Wages, profit, interest, rent Factor Markets Firms

Circular flow diagram

Transcript: Well then the cycle will begin again! Can I have some potatoes? Here is your salary! Also, this shows that Households provide businesses with resources and Businesses give them money in return! Hey! I am Aria and i am extremely hungry so lets go to Burger King and eat! Here is the money for the food yes ma'am! THANKS have a nice day! Human Resource FIRMS for sure! Now what if this farmer wants to spend his income? The owner now uses this money to purchase resources THANKS CIRCULAR FLOW DIAGRAM Therefore, businesses provide households goods and services and in return, households provide them money GOODS/SERVICES the remaining revenue is my profit, the income I earned as an entrepreneur for owning and operating my fast food restaurant ALSO KNOWN AS THE COST OF PRODUCTION! Burger King HOUSEHOLDS

Circular Flow Diagram

Transcript: Chapter 6 Project After extensive research, I have concluded that the best solution to the problem of rising seas is to build floodgates to protect our cities. This solution offers job opportunities as well as keeping our cities safe and running as usual. The other solutions discussed were impractical or too expensive. The stocks of the businesses in the area would go way down if the sea levels continue to rise. The banks may give out a lot of loans if this disaster occured. Research Chart Rising Sea Levels Circular Flow Diagram The factors of production could become scarce, due to damages from sea water, hurting the rate of production in the area. Final Action Choice Household The product market would decrease in productivity because their land and resources would be damaged by sea water. The rest of the world wouldn't be able to buy as many goods and services from this area if it became flooded. People could lose their homes due to rising water, and/or suffer a shortage of freshwater due to contamination. Needs to pay for the restoration/prevention of damage from rising sea levels. Product Markets Rest of World Financial Market Business Firms Factor Market Government Businesses in the area would lose business because of damages from the flood. 1. How does this issue affect households and local residents? Rising sea levels could cause flooding, which could result in residents losing their homes. Also, sea water could contaminate the aquifers, resulting in a shortage of fresh water in the area. 2. How does this issue affect local businesses? Like with the houses, flooding could cause the businesses to be forced to relocate. Also, people moving away from the area would be bad for businesses. 3. How does this issue affect the government at the local, state, and national levels? The government is forced to research solutions to the problem, and they will need to fund projects attempting to fix it. 4. How does this issue affect the rest of the world? People and companies from other parts of the world wouldn't be able to buy from the companies displaced by the floods. 5. How does this issue affect resources, goods and services, and finances? All of those will be negatively affected by the possible future flooding damage.

Circular Flow Diagram

Transcript: Households 1. Water pollution affects my community in terms of the lakes and rivers being polluted especially since I live in Florida a place where we have water surrounding us and alligators and other animals live in a great amount. If we pollute we will be destroying these creatures habitats. Although because of pollution everyone will see the results and raise awareness to stop. 2.My family members believe it is very serious and we must take action and prevent before it is too late to do anything to stop water pollution. Educating and motivating people to take care of their resources. The Rest of the World. The world can contribute to keeping our waters clean by keeping track of their own doings and where they keep the chemicals and trash. Our oceans need to be kept clean we need to remember that our world is a chain reaction if our oceans are destroyed very soon we will all be destroyed. If we as a whole do not take care of our water we will all soon run our o resources because there is only a certain amount of fresh water in the world that cannot be destroyed. Business Firms Government Household can take great part in reducing water pollution. We need to watch what we throw down our sinks and toilets, make sure we don't throw any harmful chemicals that will be recycled. We can also be careful with what we throw on our grass in terms of pesticides and fertilizers. Another thing we can do is throw all of our trash into the trashcan because we will prevent the trash from going into rivers,lakes, and oceans. Water pollution can affect household in terms of not having clean water to take showers or to use in the toilet or sinks. Businesses can start by creating and building awareness throughout their business in order to keep workers aware of the danger of certain chemicals being used. Like the BP oil spill we had a few years ago that killed thousands of animals and polluted various beaches it could have been prevented if better pipes were built and regulated. Water businesses will be affected if we do not take care of water pollution by not having an abundant amount of water to provide to the public making it more expensive. Guiding Questions In 1972 The United States Government passed an act called The clean water Act. The objective behind this act is to restore and maintain the chemical, physical, and biological integrity of the nation's waters by preventing point and nonpoint pollution sources, providing assistance to publicly owned treatment works for the improvement of wastewater treatment, and maintaining the integrity of wetlands.This affects our government in terms of sustaining society with clean water to drink and use "Clean Water Act." Wikipedia. Wikimedia Foundation. Web. 21 Apr. 2015. <http://en.wikipedia.org/wiki/Clean_Water_Act>. Circular Flow Diagram Water Pollution 06.01 Ana Araujo

Circular- Flow Diagram

Transcript: Brian becomes a member. He has signed up to 'gofundme.com' An overseas client uses the product as a part of a commercial weight loss plan. Therefore placing the money right back into the money pool These will be used to make her entrees. Business Firms The weight loss plan is then sold to online fitness sites. When product quality is good.. Government Ashley uses the money to purchase ingredients. Some of the money also goes towards paying production staff.. The End Factor Market Here he can make donations to upcoming businesses. Working at Pepsi. Household And purchases the weight loss plan.. She sells her recipes to Brownstone Food Distributors His donation goes to Ashley, who is starting her own restaurant. They ship their product to overseas clients And the companies will buy stock in their partnered company, to increase their leverage. Financial Market Rest of the World Which he has to pay sales taxes for.. This money is then used to fund public goods and services.. May buy stock in the company of the product.. Who then promote it and deliver it to club members. Product Market If addition funding it needed, the government will request loans.. He gets paid biweekly Taxes Brian is an assembly worker.. Private Savings Borrowing and Stock Issues by Firms Foreign Borrowing and Sales of Stocks Government Borrowing Income (wages,rent, etc.) Consumer Spending Goods and Services Consumers like Brian.. Exports Imports Services Government Spending Factors of Production Foreign Lending and Purchasing of Stocks Business Revenue Goods and Services Business Cost

Circular Flow diagram

Transcript: Circular flow model Firms produce and sell services, hire and use factors of production Government Money Money factors of production Goods and services factors of production Money House holds buy and consume goods and services, own and sell factors of production Goods and services Government transfers wages and recieves taxes, purchases goods and services Money Factor Market Goods Markets House Holds Firms

Circular Flow Diagram

Transcript: The product market then puts goods and services back into the households by the buying of products. Firms take the money from the household sales to order more. if the business has more resources to produce then they keep making sales and the money continues to flow. Natural, capital, and human resources and entrepreneurial skills are owned by HOUSEHOLDS Circular Flow Diagram Businesses then buy the resources from the market and us them to put goods and services into the product market. These diagrams illustrate the way resources, goods and services, and money flow. Its shows how money can flow through businesses and governments in a market economy. Households Product Market Government collects tax on income and sales so that they can pay for government -provided services People in households take their resources to market to sell them Government Market Economy Businesses Firms

Circular flow Diagram

Transcript: Government Circular flow diagram Phone Service Money Money Verizon (Business) Spending Taxes Household Taxes Spending Resource market