The circular flow model

Economics  grade 11

Topic: The circular flow model 

The teacher will start the lesson by taking out a note(Money) and will ask the learners what is this after the learners response the teacher will ask the learners how do people get money or earn money.

The teacher will further ask the class how do businesses make the money after the class has answerd that the teacher will begin introducing the lesson and let it flow

The teacher will show the learners the circular flow model through power point and ask the learners what is happening in the diagram then after the learners have answered that the teacher will further explain the circular flow  model.

The teacher will give the learners notes, then further explain how the flow of money circulates amongst the economy, these  are the notes the teacher will give to the class.Circular flow is a continuous flow of spending, production and income between different sectors.

The teacher will tell the learners the following: 

• The circular-flow model of the economy is a simplification showing how the economy works and the relationship between income, production and spending in the economy as a whole.

• The circular-flow model of an open economy shows the workings of an economy that is open to foreign trade.

• It is different to a closed economy because it includes the foreign sector

class activity

1. How does the circular flow model illustrate the flow of money in the economy?

2. What exchanges are made in the circular flow model between households, businesses, and government?

3. What are specific examples of each market and actor?

4. How does each actor stimulate the economy?

5. draw the circular flow diagram and show how the money circulates in the economy.

• By the end of the lesson students will be able to draw their own maps of the flow of money and resources from households, businesses, and government to the product and factor markets with specific examples of each.
• Students will learn a different way of thinking about how our economy could work: a circular economy.
• Students will learn how a circular economy is different from the status quo.
• Students will learn how nature is a model for a circular economy.
• Students will look at the economic, environmental and social advantages of a circular economy.

-THE TEACHER WILL GIVE THE LEARNERS THESE NOTES

Household sector

• Households are the major consumers of economic goods and services – they use their income to buy from firms.

• Households are the primary economic participants because they are the owners of the four factors of production

• Households sell factors of production in the factor market to firms

. • Households receive a remuneration from the firms in the form of wages, rent, interest and profit.

 

Firms/business sector

• Firms purchase the factors of production from the household in the factor market.

• Firms use the factors of production to produce goods and services.

• Businesses sell goods and services to households, government and the foreign sector

. • Businesses receive an income from the other three participants (households, government and the foreign sector).

The state/public sector •

This refers to local, regional and national government.

• The state provides the households and businesses with public goods and services.

• The state receives taxes from households, e.g. income tax.

• The state receives taxes from the business sector, e.g. company tax.

• The state spends money in the economy.)

Foreign sector •

There is a flow of goods or imports that flow from the foreign sector and are paid for by the individual households, businesses and the public sector.

• These imports can be seen as expenditure by individual households, businesses and public sector. (A monetary outflow.)

• There is also a flow of goods and services to the foreign sector from businesses (exports).

• These exports will result in an income for individual households, businesses and public sector. (A monetary inflow.)

• Check students’ understanding by asking them to draw a circular flow map.
• When i began the lesson the learners showed some interest in lesson because they all kept quiet and listened when i explained the topic to them.
• the learners did very well on the class work we did 
• all the learners participated in the lesson and asked where they did not understand 
• they were able to differenciate between the participants of the economy
• they showed a full understanding of the topic and really enjoyed the lesson and the classwork given to them.
• i noticed that even those learners who are somehow a problem in the class took this topic serious because when i introduced the topic i talked about money, that caught their attention.
• Students have learnt a different way of thinking about how our economy could work: a circular economy.
• Students have learnt how a circular economy is different from the status quo.
• Students have learnt how nature is a model for a circular economy.
• Students now know the economic, environmental and social advantages of a circular economy.

• After the learners have completed the class work the teacher will mark the learners work.
• the teacher will give the learners their feedback.
• the teacher will the do corrections with the class and rectify the learners misunderstandings together with the class.

• Mind the gap 
• Via Africa economic grade 11 textbook
• Focus grade 11 economics textbook

The learners participation in the lesson

• student participated or interacted with the learning process, as opposed to passively taking in the information.
• With the opportunity to actively engage with the information they’re learning, students performed better in their classwork.
• Active learning is discussion, practice, review, or application. Problem solving. Exploring new concepts in groups.
• although the topic was new to the leaners they showed interest and actively participated in the lesson, as their teacher im fully great full to have such an audience who want to participate.