Name: _________________________________________ Date: _________________ Block: ________
Civics & Economics: Circular Flow (CE.12b) and Role of U.S. Government in the Economy
(CE.13b)
● Essential Understandings: Circular Flow (CE.12b)
○ Resources, goods and services, and money flow continuously among ________________________, businesses,
and ________________________ in the United States economy.
● Essential Questions: Circular Flow (CE.12b)
○ How do resources, goods and services, and money flow among individuals, businesses, and governments in a
market economy?
● Essential Knowledge: Circular Flow (CE.12b)
○ Individual and business ________________________ and ________________________ provide financial capital
that can be borrowed for business expansion and increased consumption.
○ Individuals (households) own the ________________________ used in production, sell the resources, and use the
income to ________________________ products.
○ Businesses (producers) ________________________ resources; make products that are sold to individuals, other
________________________, and the ________________________; and use the profits to buy more resources.
○ Governments use ________________________ revenue from individuals and businesses to provide
________________________ goods and services.
Circular Flow of Income Model
Federal
Government
● Essential Understandings: Role of the U.S. Government in the Economy (CE.13b)
○ ________________________ provides certain goods and services that individuals and businesses acting alone
cannot provide efficiently.
● Essential Questions: Role of the U.S. Government in the Economy (CE.13b)
○ What types of goods and services do governments provide?
○ How do governments pay for the goods and services they provide?
● Essential Knowledge: Role of the U.S. Government in the Economy (CE.13b)
○ Characteristics of most goods and services provided by the government:
■ Provide ________________________ to many simultaneously
■ Would not likely be available if individuals had to provide them
■ Include such things as interstate ________________________, ________________________, and national
________________________
○ Ways governments pay for public goods and services
■ Through ________________________ revenue
■ Through ________________________ funds
■ Through ________________________ (e.g., park entrance fees)