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…
What do households get/give
to/from the government?
Why would the government
need to borrow from the
financial markets?
What goods/services are going
to the households?
Household
What do Households give and
get from the Financial
Markets?
Product Market
Factor Market
Financial Market
What is being imported and
exported?
What goods /services are
being produced?
Business Firms
Rest of World
What factors of production
are being sent to the business
firms? What does this cost the
businesses?
What do businesses need from
the financial markets?
How will the rest of the world
react in the financial markets
to your crisis?