Assignment: The circular flow model is a simplified version of our economy. In your own words, describe how this model works. This assignment requires you to reflect on the day-to-day (micro) aspects of the way the economy moves daily. As you go through this course you will encounter a variety of topics that address how individual or business decisions are made. You are encouraged to reflect on this model throughout the semester to contribute to your understanding of economics. In no less than 300 words describe your activities in the last week as it relates to the circular flow model. PART A: Reflect on the items you purchased and the allocation of those resources by a business. For example: When you stopped at Valero or the grocery store. You spent a total of were allocated back to you (household) and the firm (Businesses). What goods and services were purchased by the businesses (firm)? What do you think some businesses did with their profit? Share any insight from the business perspective gained from this assignment. PART B: Reflect on receiving your paycheck. After taxes how or where did your money flow through the model? What goods and services were purchased by you (household)? Consider other activities such as car repairs, clothing or entertainment purchases (cigarettes, ice cream, dining out, etc). Share any insight from the your (household) perspective gained from this assignment. Submission Method: Journal
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