The Circular Flow of Economic Activity
Objective: To understand market interactions
Warm-Up
After setting up your notebook title and objective,
please take 5-10 minutes to read Activity 10.1
* TURN IN YOUR PROJECT to the inbox!!!!
Group Questions
Draw a circular flow diagram. Identify the parts of the
model that correspond to the flow of goods and services
and the flow of dollars for each of the following activities:
1) Selena pays a storekeeper $1 for a quart of milk
2) Stuart earns $4.50 per hour working at a fast-food
restaurant
3) Shanna spends $30 to get a haircut
4) Sally earns $10,000 from her 10 percent ownership of
Acme Industrial