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Circular Flow Diagram

Transcript: Chapter 6 Project After extensive research, I have concluded that the best solution to the problem of rising seas is to build floodgates to protect our cities. This solution offers job opportunities as well as keeping our cities safe and running as usual. The other solutions discussed were impractical or too expensive. The stocks of the businesses in the area would go way down if the sea levels continue to rise. The banks may give out a lot of loans if this disaster occured. Research Chart Rising Sea Levels Circular Flow Diagram The factors of production could become scarce, due to damages from sea water, hurting the rate of production in the area. Final Action Choice Household The product market would decrease in productivity because their land and resources would be damaged by sea water. The rest of the world wouldn't be able to buy as many goods and services from this area if it became flooded. People could lose their homes due to rising water, and/or suffer a shortage of freshwater due to contamination. Needs to pay for the restoration/prevention of damage from rising sea levels. Product Markets Rest of World Financial Market Business Firms Factor Market Government Businesses in the area would lose business because of damages from the flood. 1. How does this issue affect households and local residents? Rising sea levels could cause flooding, which could result in residents losing their homes. Also, sea water could contaminate the aquifers, resulting in a shortage of fresh water in the area. 2. How does this issue affect local businesses? Like with the houses, flooding could cause the businesses to be forced to relocate. Also, people moving away from the area would be bad for businesses. 3. How does this issue affect the government at the local, state, and national levels? The government is forced to research solutions to the problem, and they will need to fund projects attempting to fix it. 4. How does this issue affect the rest of the world? People and companies from other parts of the world wouldn't be able to buy from the companies displaced by the floods. 5. How does this issue affect resources, goods and services, and finances? All of those will be negatively affected by the possible future flooding damage.

Circular- Flow Diagram

Transcript: Brian becomes a member. He has signed up to 'gofundme.com' An overseas client uses the product as a part of a commercial weight loss plan. Therefore placing the money right back into the money pool These will be used to make her entrees. Business Firms The weight loss plan is then sold to online fitness sites. When product quality is good.. Government Ashley uses the money to purchase ingredients. Some of the money also goes towards paying production staff.. The End Factor Market Here he can make donations to upcoming businesses. Working at Pepsi. Household And purchases the weight loss plan.. She sells her recipes to Brownstone Food Distributors His donation goes to Ashley, who is starting her own restaurant. They ship their product to overseas clients And the companies will buy stock in their partnered company, to increase their leverage. Financial Market Rest of the World Which he has to pay sales taxes for.. This money is then used to fund public goods and services.. May buy stock in the company of the product.. Who then promote it and deliver it to club members. Product Market If addition funding it needed, the government will request loans.. He gets paid biweekly Taxes Brian is an assembly worker.. Private Savings Borrowing and Stock Issues by Firms Foreign Borrowing and Sales of Stocks Government Borrowing Income (wages,rent, etc.) Consumer Spending Goods and Services Consumers like Brian.. Exports Imports Services Government Spending Factors of Production Foreign Lending and Purchasing of Stocks Business Revenue Goods and Services Business Cost

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