The Market Phenomenon How is the market economic

The Market Phenomenon How is the market economic system and the circular flow model linked?

Objectives • Understand explain a market and its role in the market economic system • Understand the “circular flow” of the market system by creating a graphic organizer of the flow • Compose a narrative of the “circular flow”

What 2 factors do ALL markets share?

Times Square, N. Y. C. • “district was a mecca for family-oriented tourism and entertainment…”

Chandni Chowk, Delhi “…might actually be possible to get anything in Chandni Chowk: from made-to-order wedding dresses to exotic fruits to refurbished secondhand shoes. ”

Marrakech, Morocco • Largest market place in Africa

Hong Kong • One of Asia’s largest markets • Serves the largest population in the world • What factors did you see? ? ?

4 Points of the “Circular Flow” • All dependant on market activity to drive system…exchange goods/services • Buyers and sellers to meet and exchange product 1. Factor Market 2. Business 3. Product Market 4. Individuals – No specific order…all components critical

Specifics… • Factor markets: – Where individuals earn an income – 4 factors of production (C. E. L. L. ) are bought and sold – You/your parents work place • Product market: – Use income to acquire good/services here – $ returns to businesses (factor markets) • This creates an infinite cycle where wages are exchanged and go on to create more and more goods/services

Watch… • https: //www. youtube. com/watch? v=Hfz 1 bw. K 5 C 4 o • How are individuals and businesses (firms) linked in the market system?

Act… • Create a graphic organizer of the “circular flow” • Compose a brief narrative of the “flow”

Intro… • Exchange your narrative with someone near you • Come up and grab a red, blue (or black) pen, and a highlighter • Read your partners narrative and identify the 4 pieces of the circular flow model – Red for business – Blue for individual – Yellow for product market – Circle for factor market

“FLOW” Activity • Moving around the school to 2 different locations in order to highlight the “circular flow” of the market economy • Complete the sheet as you move • Find the posted explanation of each location’s relation to the “circular flow” and read it to your group • 25 MINUTES TO COMPLETE!!

Intro: Mock-market interaction • Grab a sheet from the front and get into groups • Read the directions and get started Objective: • Understand the two types of markets • Understand how individuals and businesses are both buyers and sellers

Reflection Questions • With a partner grab a white board, marker and eraser • I will give out 1 point for the best answer to each question…winning pair will receive a prize • Ready to begin?

Question #1 • How does the market economic system and the “circular flow” overlap?

Question #2 • How does your paycheck fit into our larger market economy?

Question #3 • During the “Circular Flow” of Conestoga activity, your physical movement around the school was the equivalent of what in the real world?

Question #4 • Where is the governments role in our market’s “circular flow”? Answer and give a specific example.

Question #5 • How could a labor strike effect our community here in Berwyn?

Question #6 • On a scale of 1 -10, how important is freedom in a market economy?

Question #7 • Which of the 4 pieces of the “circular flow” is the most crucial to the system?

Question #8 • Explain the role a website like E-bay or Amazon plays in the “circular flow. ”

Question #9 • Command Example… • Why does a market system overcome the command system’s shortcomings?

Question #10 • Why is it important to understand the “circular flow” of our economy?