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The Market Phenomenon

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

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The Market Phenomenon

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

  2. Objectives • Understand and 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”

  3. What 2 factors do ALL markets share?

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

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

  6. Marrakech, Morocco • Largest market place in Africa

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

  8. 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 • Factor Market • Business • Product Market • Individuals • No specific order…all components critical

  9. 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

  10. Watch… • https://www.youtube.com/watch?v=Hfz1bwK5C4o • How are individuals and businesses (firms) linked in the market system?

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

  12. 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

  13. “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!!

  14. 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

  15. 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?

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

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

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

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

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

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

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

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

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

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

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