Reflective Blog (14 February 2014)
For this week class, we learned about the economic flow chart, the enterprise system, the fundamental of a market economy, and incentives. We watch an old, but informative, video on capitalism and we also made a video on the flow chart. We went into groups to discuss what business should be in Weserville and we still have not vote on the three business yet.
The economic flow chart is like a the circle of life. It starts with business buy resources from the individuals/households. The individuals/households gets the money and the business use the resources to make goods at factories. The business then sell these goods to stores and markets. The individuals/household then buys the goods and the cycle then repeats again.
This flow chart is important or related to the real world. Without the individuals/household, the business most likely won't get supplies in a market economy. Without the business, there will be no one to mass produce goods and sell them to stores. If one is missing it could ruin the flow chart and create an disorder.
In my opinion, I agree that the flow chart is important to the real world. It does start with the businesses buying the resources from the individuals and then they get the supplies from factories to sell the goods to stores while people buy them.
ReplyDeleteI find interesting how you mainly focused on the circular flow chart because, indeed, it is very important how a market works. It is true that without the flow chart the business market would be very difficult to understand and is very important for the real world.
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