Does it ever seem like the more money you get, the more you spend? A short video lesson introduces the concept of goods and services changing hands in a circular flow pattern. Scholars analyze how businesses make money from selling goods and services, but also pay money to produce them. They discuss how everyone benefits from the circular flow of the economy if everything is operating according to plan. 

Concepts

circular reasoning, economics, supply and demand

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Additional Tags

social studies

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Instructional Ideas

• Post a large graph of the circular flow concept during the lesson
• Play a game in class involving monopoly money and a goods exchange from businesses to individuals and back again in the circular flow pattern

Classroom Considerations

• If assigning the video as homework, be sure everyone has Internet access
• Episode is the sixth installment in a 10-part playlist covering economics
  

Pros

• Lesson includes a written transcript of the video for easier planning and implementation
  
• Contains a podcast of the video for audio listeners

Cons

• None

Common Core

RH.6-8.1 RH.6-8.2 RH.6-8.3 RH.9-10.1 RH.9-10.2 RH.9-10.3 RH.11-12.1 RH.11-12.2 RH.11-12.3