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2.1.3 Practice - Creating A Circular Flow Diagram (Practice)

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57 views4 pages

2.1.3 Practice - Creating A Circular Flow Diagram (Practice)

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hangshau999
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2.1.

3 Practice: Creating a Circular Flow Diagram Practice


Economics and Personal Finance Name:
Date:

Section 1: Creating a Circular Flow Diagram

Read this article about the history of Starbucks Corporation from HistoryLink.org:
"Starbucks: The Early Years" by Sheila Farr. As you read, find at least one example of
every major group in a typical circular flow diagram, including:

A business

A resource market

A household

A product market

Also find examples of a resource, good, service, or dollar amount that flowed between
each of the four groups you identified. More specifically, these examples should
include:

A resource from a resource market that a business used

A productive resource (labor) that a household supplied to a resource market

An expenditure a household made by buying a product

A product a household bought from the product market

Revenue a business made from the product market

A good or service a business provided to the product market

Once you have identified at least one example for each item in the list above, fill out
the blank circular flow diagram below.

Keep in mind that the reading may provide multiple examples for each item. You only
need to mention one or two examples, but make sure they are clear so your instructor
can easily find them in the article. Also keep in mind that since the "income" and

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"wages, interest, net profit" categories are not explicitly mentioned in the reading,
these details have been filled in for you. (4 points)

Section 2: Analyzing a Circular Flow Diagram

1. If you were a Starbucks customer, where would you fit in this circular flow
diagram? Where would you fit if you were a Starbucks employee? Explain which

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steps on the diagram you would affect in these roles and why. (2 points)

2. Categorize the resource markets you listed in your circular flow diagram. Are they
banks, suppliers of raw resources, labor agencies, land, or something else? (2 points)

3. What were some examples of groups or resources that were hard to classify in
your circular flow diagram? For example, did any groups function as both a business
and a resource market? Give two examples and explain why they defied
classification. (2 points)

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copying, reuse, or redistribution is prohibited.
Copyright © 2022 Apex Learning Inc. Use of this material is subject to Apex Learning's Terms of Use. Any unauthorized

copying, reuse, or redistribution is prohibited. Apex Learning ® and the Apex Learning Logo are registered trademarks of

Apex Learning Inc.

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