economic simulation. this simulation is designed to show how a modern economy works. it shows how...

Economic simulation

Money go round

• This simulation is designed to show how a modern economy works.

• It shows how households and businesses are interdependent

• During the simulation real world events will occur which will change how money and resources flow between households and businesses.

• Only the strongest will survive!!!

Money go round

• You control labour and will start with 4 units of labour

• You provide your labour to businesses and in return you get money

• You use this money to buy products

• By the end of each round you must have 4 products (minimum of 3 colours)

Households

• You control the money. You start with 8 money units and use the money to buy labour.

• Each unit of labour you get you take it straight to the bank and they give you a product unit.

• You then sell these product units to households for money.

Businesses

Round one

HouseholdsBy the end of the round you need

4 Product units(minimum 3 colours)

As soon as you have four product units you take everything you have, including any spare money units to the bank and they will give you your labour units for the next round.

Round two



As soon as you have four product units you take everything you have, including any spare money units to the bank and they will give you your labour units for the next round.

• New Zealand households start to buy some of their products from overseas using the internet.

• This means they are buying less products from NZ businesses.

Event # 1

Round three



As soon as you have three product units you take everything you have, including any spare money units to the bank and they will give you your labour units for the next round.

Round four



As soon as you have three product units you take everything you have, including any spare money units to the bank and they will give you your labour units for the next round.

• More students are passing NCEA and getting better qualifications and skills.

• Each households will receive an additional 3 labour units from the bank.

• Businesses decided to borrow money to expand and buy capital.

• Each business gets 5 extra money units.

Event # 2

Round five



As soon as you have five product units you take everything you have, including any spare money units to the bank and they will give you your labour units for the next round.

Round six




• Yellow business is caught polluting the environment.

• Yellow are fined 5 money units.

• The government has discovered that purple business have not been paying enough tax.

• Purple are fined 4 money units.

Event # 3

Round seven




Round eight




• How are households and businesses interdependent?

• Why do firms need labour units to get issued with product units?

• Why do households need a certain number of products before they are issued with their labour units for the next round

Debrief

• How were businesses effected when households started buying some goods from overseas?

• How were households effected by buying goods from overseas?

• Why does more students getting skills / qualifications = more labour units?

• What happens when firms lose money?

• What happens if a household does not have enough to survive?

economic simulation. this simulation is designed to show how a modern economy works. it shows how...

Documents