Circular Flow Diagram

Sources

Writer, Ivan Penn Times Staff. "On Climate Change, Florida's Been Warned (w/video)." Tampa Bay Times. N.p., 21 Dec. 2013. Web. 13 Dec. 2016.

"Hurricane Matthew's Destructive Storm Surges Hint at New Normal." National Geographic. National Geographic Society, 8 Oct. 2016. Web. 13 Dec. 2016.

"Global Warming Fast Facts." National Geographic. National Geographic Society, 14 June 2007. Web. 13 Dec. 2016.

Snow, Jackie. "Green Roofs Take Root Around the World." National Geographic. National Geographic Society, 27 Oct. 2016. Web. 13 Dec. 2016.

Domonoske, Camila. "San Francisco Requires New Buildings To Install Solar Panels." NPR. NPR, 20 Apr. 2016. Web. 13 Dec. 2016.

6.03 Research Chart

Research Chart
Subject	Guiding Questions	Your Responses
Consider all possible solutions or alternatives.	Give three possible solutions to the economic issue you are investigating.         Why would some people oppose the solutions you have chosen?	To reduce the effects of climate change in Florida, I propose that we should mandate a carbon tax, provide solar panels or green roofs for all new buildings and really crack down on harmful chemicals and prohibit the use of them if they are causing serious danger to the Earth.           These solutions would definitely not have the support of all people because, unfortunately, politics is involved with climate change. Some people don’t believe that global warming is real so they won’t care about efforts to reduce it. Also, these solutions can be pretty costly and have some externalities that not all people would be happy about.
Calculate the consequences of these solutions- both intended and unintended at all levels of the economy.	What positive or negative externalities does this issue present at each sector of the economy? Refer to your circular-flow diagram.         What incentives do individuals, businesses, and government have to act on each possible solution?         What are the externalities, both positive, and negative, that could result from each possible solution?	With the introduction of solar panels to all new buildings we could definitely give business to the companies that produce them, so it could be a positive externality to that product market. However, for the businesses that have to spend the money on them, they might be seen as negative. These businesses may have to borrow money from the banks to pay for these solar panels (financial market). But solar panels could greatly and positively affect conservation efforts, a positive externality. The addition of these solar panels can provide jobs, a positive externality for the factor market. A carbon tax and stricter chemical regulations would have negative externalities on the businesses that rely on carbon use and chemicals, but it would definitely be positive for the environment.           Individuals have the incentive of having a better and cleaner Earth for the future. Businesses can make money off of the sale of solar panels, creating jobs. Also, although solar panels are expensive, businesses will save money in the long run with the implementation of them. If the government mandates all of these points, they will be able to create jobs and stimulate the economy and better our Earth.           I basically already stated all the negative and positive externalities in question 1. Basically, carbon tax and chemical regulations would not be so great for the businesses that use them because they will have to either find other alternatives or spend more money. But they will be great for the environment! Solar panels may seem like a waste of money for businesses at first, but they actually will save the businesses money in the long run. Solar panels will also have a positive effect on the environment.

6.02 Research Chart

Subject	Guiding Questions	Your Responses
Identify the important criteria to evaluate possible solutions.	What are the necessary conditions for any possible solution to work?         Are there budget or labor concerns?        Does the public need to be aware of and support the solution?         What challenges are there to implementing each solution?         How else might you judge possible solutions against each other?         What do your parents/others in the community say about the issue?        Should possible externalities factor into the chosen solution?	For the solutions to work, the State of Florida and all of its residents and businesses must abide by the rules. Money is also necessary for implementing solar panels on all new buildings.        There are budget concerns, for sure. Solar panels are expensive, but in the long run they will be worth it. However, I don’t believe there are labor concerns because this will introduce job opportunities. Also, for companies that use carbon and dangerous chemicals, it might be costly.         I definitely think that the public should be aware of the solutions and have full support of them. I believe that they will support it because of the consequences that would come up otherwise.       The challenges to implementing each solution are getting the government and businesses in support of them, because they are costly, and the carbon tax/chemical regulation may make it harder for businesses.         I would just look at the total cost of implementing each, as well as the total possible benefits of each. Also, the amount of support each solution has.         Many people in my community are very doubtful and in denial about this issue. However, I think they are just ignorant to facts and may think otherwise if they actually spent the time to research.         I definitely think that possible externalities should factor into the solution. If we don’t think about them, we might be in tough waters.

6.01 Research Chart

6.01 Research Notes
Subject	Guiding Questions	Your Responses
Define the situation or problem           With global warming comes rising sea levels, meaning that much of Florida could soon be underwater	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?	The issue I chose affects my community because I live in the part of Florida that could be underwater in the future if we don’t stop the rising sea levels            Some of the people in my family don’t believe in climate change, but science shows this is real. My sister believes that we need to take steps in order to reverse the effects of global warming.
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?	This issue would greatly affect households and local residents because they will no longer have homes or be able to reside here.           This issue also greatly affects businesses such as tourism, energy, steel and other major industries in the area because they will no longer have the land.           This issue effects government at local levels because they will no longer be in existence, state because they will lose revenue from these areas and national because they will also lose money.           This issue effects the rest of the world because Florida has many goods that people all over the world use and will no longer have access to if we are underwater.           The issue effects resources because obviously if we’re underwater, there will be none, goods and services because we can’t provide them without resources, and finances because without the resources needed to provide the goods or services we won’t make any money.