CHAPTER 11 – MINNESOTA STUDIES continued
CHAPTER 11 FLOUR, LUMBER, AND IRON
Minnesota Studies
Your household is part of an economy. In an economy there is a continuous cycle of money, goods, and services. In an economic cycle, there are two kinds of markets: a resource market and a product market. Read what is exchanged in these markets for three Minnesota industries, then answer the questions.
Flour Milling / Lumber / Iron MiningResource Market / Pillsbury Flour Company pays WAGES to its flour mill workers.
Workers provide their WORK to the Pillsbury Flour Company. / Weyerhaeuser pays WAGES to its lumberjacks and sawmill workers.
Workers provide their WORK to the Weyerhaeuser company. / U.S. Steel pays WAGES to its miners and steel mill workers.
Workers provide their WORK to the U.S. Steel company.
Product Market / Households spend MONEY to buy flour.
The Pillsbury Flour Company produces flour (GOODS). / Households spend MONEY to buy lumber for building new homes.
Weyerhaeuser produces processed lumber (GOODS). / Households spend MONEY to buy goods manufactured with steel (made from iron).
U.S. Steel mines iron and processes it into steel products (GOODS).
1. Which kind of market shows the exchange of WORK and the WAGES those workers earn for their work? resource
market OR product market (circle one)
2. Which kind of market shows the exchange of GOODS that are produced and the MONEY people spend to get those goods?
resource market OR product market (circle one)
3. Write one sentence explaining how the resource market and product market are different from one another.
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4. Write one sentence explaining how the resource market and product market are similar.
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5. You can see the movement of money, goods, and services by studying a diagram called a circular flow model. Complete this circular flow model for flour milling. Follow these steps.
• Study the Flour Milling column of the table on the previous page.
• Using information from the table, fill in the blanks within the arrows. (The GOODS arrow has been filled in for you.)
• Draw a symbol or picture in the empty space in the middle to show what good was produced by the Pillsbury Flour Company.
CHAPTER 11 – FLOUR, LUMBER, AND IRON