The Circular Flow Model of Economy - Game
Economy means, according to Wikipedia:
An economy or economic system consists of the production, distribution or trade, and consumption of limited goods and services by different
agents in a given geographical location. The economic agents can be individuals, businesses, organizations, or governments. Transactions occur
when two parties agree to the value or price of the transacted good or service, commonly expressed in a certain currency.
Focus on the concept “limited”. We can’t do whatever we want; we are limited by the access to
money.
LGR 11, Core Curriculum for Civics says that student should learn more about society’s resources
and their distribution;


How the finances of households, companies and the public sector are linked together. Causes of
changes in the economy and what their effects are on individuals and groups.
How the economies of countries and regions are interlinked
The aim for today is to understand:
How the finances of households, companies (domestic and international) and the public sector are linked
together by using the Circular Flow Model of Economy.
20
min
max
1. Find your group (Anna will tell you who to work with) Select one “mover” and one “talker”. The
“mover” is the only one allowed to put words/arrows into the model and/or move them. The
“talker” is the one that will explain to the other groups how you were thinking.
2. Sort out all the words, arrows and pictures. You may need to use scissors!
3. Make sure you understand the concepts/ words. Use the attached word-list
4. Place your pictures according to the model on the white-board. (“mover”)
5. Place the words and the arrows in a way that shows how money flows between the different
sectors/ places. (There are too many words and too many arrows) (“mover”)
6. Be prepared to defend/ explain how and why you placed the words/arrows the way you did. The
group makes sure the “talker” knows what to say.
7. The “talker” explains/ defends your flow model. You tell your teacher when you are ready to be
evaluated.
8. You will be given “points” according to the following:
Correct word (explained well)
2 points
Correct word (not explained)
1 point
No word – good argument
1 point
Correct arrow
0.5 point
Wrong word – not explained so that your teacher redefines the model
-1 point
The winning team will present its model on the whiteboard and be named “Circular Flow Model Experts”.
Make sure you all take notes in some way (write/ use your camera…)