Steps This activity has  three  parts. Make sure you read on for details to complete them all! Part One: Choose  Identify an economic issue that is important in your community. These are some examples: 06.01 Environmental Policy Topics The list below includes some topics that you may want to consider for your Module Six Project. Please keep in mind that your topic must be relevant to your local community. You are not limited to this list. Follow the steps and recommendations in the lesson to help you decide which topic to pursue. Economic Policy Areas Specific Topic Ideas Transportation Constructing and managing a high-speed rail system,  expanding existing roads and highways,  adding public bus system Energy Build nuclear power plant,  require new homes and buildings to install solar energy panels,  renovate city buildings to be more  energy efficient Education Build a four-year university,  allow building of charter schools,  create dropout prevention program,  build after-school youth center Housing Drain wetlands to build new neighborhood,  build new apartment complex in central part of city Water Build new water treatment plant,  upgrade sewage system throughout city Jobs Offer lower taxes to attract new businesses,  create job training program for jobs in demand locally Law Enforcement Hiring additional police officers,  installing “red light camera” system,  increasing fines for traffic or  other minor offenses, build a new jail,  expand crime prevention education efforts Part Two: Research Learn more about how this issue affects your community. You may choose to contact a local leader such as a member of your city or county council or representative from an a related citizen interest group. Consult an online phone book or community website for contact information. Use the Research Chart to document your data, take notes, and track your sources of information. Part Three: Construct  Construct a circular-flow diagram for a business or industry in your community. Diagram the flow of goods, services, and money from your chosen industry to the various sectors of the local and world economy. For example, a factory in your community creates jobs and products. The income to the households creates spending in the economy as people consume products, invest, and pay taxes to the government. Use the Research Chart to document how this business or industry's activities affect the various sectors of the local and world economy. Submit both the diagram and the chart in assessment 6.01.  - A circular-flow diagram shows the flow of resources between four main players in the economy—households, businesses, the government, and the rest of the world. An example of a circular flow diagram would be: Player Tourism Example Cars Example Individuals and Households (productive resources) Individuals in households earn money from jobs related to tourism. They spend this money in the product market. Money is sent to the government in the form of taxes. Financial.

1. Steps
This activity has
three
parts. Make sure you read on for details to complete them all!
Part One: Choose
Identify an economic issue that is important in your community.
These are some examples:
06.01 Environmental Policy Topics
The list below includes some topics that you may want to
consider for your Module Six Project. Please keep in mind that
your topic must be relevant to your local community. You are
not limited to this list. Follow the steps and recommendations in
the lesson to help you decide which topic to pursue.
Economic Policy Areas
Specific Topic Ideas
Transportation
Constructing and managing a high-speed rail system,
expanding existing roads and highways,
adding public bus system
Energy
Build nuclear power plant,
require new homes and buildings to install solar energy panels,
renovate city buildings to be more
energy efficient
Education
Build a four-year university,
allow building of charter schools,
create dropout prevention program,
build after-school youth center
Housing
Drain wetlands to build new neighborhood,
build new apartment complex in central part of city
Water
Build new water treatment plant,
upgrade sewage system throughout city

2. Jobs
Offer lower taxes to attract new businesses,
create job training program for jobs in demand locally
Law Enforcement
Hiring additional police officers,
installing “red light camera” system,
increasing fines for traffic or
other minor offenses, build a new jail,
expand crime prevention education efforts
Part Two: Research
Learn more about how this issue affects your community. You
may choose to contact a local leader such as a member of your
city or county council or representative from an a related citizen
interest group. Consult an online phone book or community
website for contact information. Use the Research Chart to
document your data, take notes, and track your sources of
information.
Part Three: Construct
Construct a circular-flow diagram for a business or industry in
your community. Diagram the flow of goods, services, and
money from your chosen industry to the various sectors of the
local and world economy. For example, a factory in your
community creates jobs and products. The income to the
households creates spending in the economy as people consume
products, invest, and pay taxes to the government.
Use the Research Chart to document how this business or
industry's activities affect the various sectors of the local and
world economy.
Submit both the diagram and the chart in assessment 6.01.
-
A circular-flow diagram shows the flow of resources between
four main players in the economy—households, businesses, the
government, and the rest of the world.
An example of a circular flow diagram would be:
Player
Tourism Example

3. Cars Example
Individuals and Households
(productive resources)
Individuals in households earn money from jobs related to
tourism. They spend this money in the product market. Money is
sent to the government in the form of taxes. Financial
institutions, such as banks, receive deposits from individuals.
Individuals seek credit from financial businesses to purchase
cars from dealerships. They earn money from working in
factories, car dealerships, government, and banks.
Businesses
(capital investment)
Businesses sell products and take in money from tourists.
Businesses in turn pay taxes to the government and invest in
new resources (land, labor, capital). Money is invested in the
financial markets and businesses sell stock to raise capital.
Car manufacturers create cars for dealerships, who sell them to
individuals and businesses. For example, an electric company
purchases trucks to transport workers and tools to buildings and
power substations.
Government
(taxes and regulation)
The government takes in revenue from the tourists spending
money (sales tax). The government collects other taxes such as
income taxes, property taxes, and revenue taxes. The
government uses this money to hire workers, purchase products,
and support various programs.
Governments purchase cars to transport political leaders, police
officers, and other government personnel. The government taxes
the income of businesses and individuals, and can change
interest rates for credit services.
The Rest of the World
(import/export markets)
Businesses related to tourism import products from foreign
countries to sell to tourists. Foreign countries invest by buying
stock in businesses related to tourism.

4. Car manufacturers export cars to other countries for sale, and
sometimes build factories in other countries. The importing
country's government may place a tariff on the foreign cars and
parts.
Now complete this research chart:
06.01
Research Chart
Use the chart below to guide your research. Answer the
questions presented for the issue you have chosen. Be sure to
take notes, including the sources of information.
06.01
Research Notes
Subject
Guiding Questions
Your Responses
Define the situation or problem
Explain how the issue you have chosen affects your community.
Be sure to include impacts you perceive to be both positive and
negative.
What do members of your family and community say about the
issue?
Construct a circular-flow diagram that incorporates effects of
your chosen issue on economic products and various sectors of
the economy.
Based on your diagram, answer the following questions
including positive and negative effects on each economic sector.
How does this issue affect households and local residents?
How does this issue affect area businesses?
How does this issue affect our government at the local, state,
and national levels?
How does this issue affect the rest of the world?
How does the issue affect resources, goods and services, and
finances?
Print

5. You may use any online resource to make the circular flow
diagram such as this one:
Circular-flow Diagram Worksheet
quick summary of what you need to do:
The work contains
all
of the following required elements:
circular-flow diagram
research notes chart
research and diagram focus on the specific issue