Social Studies Economics - Bayport-Blue Point School District

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17. Identify two situations that involve trade—offs
. One
should be a local problem; the other should be of national
importance. (Examples: (l)The school has a limited budget,
but the students want a swimming pool. What goods and
services could be “traded off” to have a stronger military?
Write short papers in which you explain the problems,
identify the goals, and show what must be sacrificed
(traded off) to have the desired goods or services.
18. Study the circular flow model . Make a rough drawing of
the model, but illustrate the main ideas by using a business
that you know about. For example, a fast—food restaurant
sells hamburgers and milk, so your drawing could show these
items going from the business to the market for goods and
services. The restaurant hires workers; buys meat, bread,
milk, etc., and purchases such capital items as ovens,
mixers, tables, and chairs. Your drawing can show these
“factors of production” going from the market for the
factors of production toward the business. For the house—
hold part of the diagram, think about your own household.
What do you and your family buy from the market for goods
and services? What do you sell to the market for the
factors of production? (Members of your family who have
jobs are selling their labor. If anyone in your family
owns stocks or bonds they are providing capital, etc.)
Show how you and your family fit into the circular flow
of economic activity in our society.