The document discusses various theories of reader response, including New Criticism which focuses on the inherent meaning of the text, and Reader Response theory which emphasizes the role of the reader in constructing meaning. It specifically examines Louise Rosenblatt's Transactional Theory of Reading, which describes how readers interact dynamically with texts by making personal associations that trigger memories. The document then discusses understanding children's responses to literature, including listening behaviors, contact with books, impulse to share, actions and drama, oral response, and written response. Finally, it defines and describes key aspects of literature circles, including student choice, temporary small groups, discussion roles, and being student-driven.