2.1.1 Circular Flow of Income: Marble Run Exercise

Task

Your task is to design a working model of the economy using marbles.

You will have the following materials to work with:

• Plastic Pipe
• Bends and T Junction
• Tape
• Cardboard Packaging
• 10 Marbles

Success Criteria:

Your model must have:

• Stations to represent households and firms.
• Chutes to show the following money flows:
  • Income for labour
  • Consumer Expenditure
• A mechanism for income being ‘leaked’ out of the system.

You will be required to show:

• What the effect of an ‘injection’ of 10 marbles will be if you remove . . .
  • 1 marble each time
  • 2 marbles each time
  • 5 marbles each time