Step 3: Fill out the Circular Flow Diagram, related to your topic of research
Replace the questions in the white boxes with your explanations? It should all relate back to your environmental issue.
Government
What does the government
buy from the product market?
And vice versa…
Why would the government
need to borrow from the
financial markets?
What do households get/give
to/from the government?
Household
What do Households give and
get from the Financial
Markets?
What goods/services are going
to the households?
Factor Market
Product Market
What goods /services are
being produced?
Business Firms
What is being imported and
exported?
Rest of World
What factors of production
are being sent to the business
firms? What does this cost the
businesses?
Financial Market
What do businesses need from
the financial markets?
How will the rest of the world
react in the financial markets
to your crisis?