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Module Six Circular Flow Chart
Tiffany Gregsonon 20 May 2011
Transcript of Module Six Circular Flow Chart
-Because of polluted land areas development problems have arised and also wildlife endangerment issues.
-Many citizens have complained at the worsening conditions around communities and residence areas. The Action Plan Part I After many complaints and after the issue has grown on a national scale the goverment decides to create a waste management and pollution organization to come up with new ideas to stop the spread of pollution. Action Plan Part II The newly formed organization is backed up by the government who is funding the organization's research and work. To stop pollution the organization starts at trying to get to the source of it. The Solution The source of the pollution is the factories and automobiles. To stop this pollution the organization has created two solutions.
First, a factory conservative device that uses hydrogel sensors and solar power to power the factory. The factories emissions will be converted into more power and sent back into the factory and stored as backup power supply. For Cars... The organization has presented the idea of using hybrid electric and eco-friendly automobiles as devices for transportation. Instead of replacing the whole car, The fuel system will be replaced with a electric charging system that will enable the car to run on electrical power and thus preventing te spread of pollution. Where Does the Money Work? The government funds the organization by means of taxes. Cleanup The organization has now stopped the sources of pollution and now will begin a national cleanup and continue to find more efficiency that will help the environment and prevent pollution, and work on turning it to a worlwide project. The Circular Flow Government Household Factor Market Financial Market Product Market Business Firms Rest of the World Consumer spending Taxes Government spending exports government borrowing factors of production income & wages foreign landing & purchasing of stocks Government creates organization Organization is funded by household taxes Organization's new invention is produced in the product market which requires government spending The new products is exported to different countries in the world and bought by households. The government borrows money from the financial market Foreign countries share stock with this new invention