Economic Resources

Greetings Arizona Marketing Educator!
 
As part of my implementation plan through the University of Delaware’s masters in economics and entrepreneurship masters program, I created this document to provide resources to Arizona marketing and economics educators to assist us as we incorporate hands-on activities and resources with our students as we teach economic concepts.  I hope you will find this helpful!   Vicki Tolman, July, 2010 

Concept 1:  Foundations of Economics
PO 1.  Analyze the implications of scarcity:
a. Limited resources and unlimited human wants influence choice at individual, national, and international levels.
  • What is Economics
  • Scarcity
  • Choice, Opportunity Costs and Decisions
    • Virtual Economics CD – Lesson 1 from FOCUS High School Economics 2nd Edition
    • Concepts:  Scarcity, opportunity costs, tradeoffs
b. Factors of production (e.g., natural, human, and capital resources, entrepreneurship, technology)
  • Factors of Production
  • Getting More or Using Less
    • Virtual Economics CD – Lesson 8 from FOCUS High School Economics 2nd Edition
    • Concepts:  productivity, specialization and division of labor, investment in capital goods, and investment in human capital
  • Learn More, Earn More
    • Virtual Economics CD – Lesson 9 from FOCUS High School Economics 2nd Edition
    • Concepts:  human capital, income, standard of living
c. Marginal analysis by producers, consumers, savers, and investors
  • The Economic Way of Thinking:  Three Activities to Demonstrate Marginal Analysis
    • Virtual Economics CD –Economics in Action, Lesson 6, 14 Greatest Hits for Teaching High School Economics book
  • Until the Last Unit Equals …
    • Virtual Economics CD – Lesson 15 from FOCUS High School Economics, 2nd Edition
    • Concepts:  marginalism, diminishing returns, marginal product, marginal cost
  • Dumptown, USA: Making a Ton of Difference
    • Concepts:  Benefit, budget, choice, communities and cities, cost/benefit analysis,
    • Costs, decision making, economic efficiency, incentive, marginal analysis, role of government
 PO 2.  Analyze production possibilities curves to describe opportunity costs and trade-offs.
 PO 3. Describe the characteristics of the mixed-market economy of the United States:
a. Property rights
  • Property Rights, the Tragedy of the Commons, and the Coase Theorem
    • Virtual Economics CD – FOCUS Economic Systems book by NCEE lesson 3
    • Concepts:  Property rights, tragedy of the commons, coase theorem
  • Why are Some Nations Wealthy?
    • Virtual Economics CD, lesson 10 from FOCUS Economic Systems
    • Concepts:  Economic growth, productivity, property rights, saving and investment, physical capital and human capital, natural resources, trade
  • Property Rights and Contracts as Economic Institutions
    • Virtual Economics CD lesson 2 from FOCUS Institutions and Markets
    • Concepts:  Private property, communal property, intellectual property, market economy, incentives, legal foundations of a market economy, contracts
b. Profit motive
  • Video Cartoon – “Going Places” (1948) Fun and effective examples showing capitalism, competition, and the profit motive.
c. Consumer sovereignty
d. Competition
  • Video clip:  NASA contracts to private firm
    • Small commercial firm lands contract with NASA.  See video at link above.  Discussion questions online at www.izzit.org
  • Marketplace: Corporate Leap Frog
    • Concepts:  Advertising, competition, non-price competition, price
    • This lesson will focus on competition among sellers and the factors that can make one company more successful than another in the same market. Competition between K-Mart, Wal- Mart, and Target will be examined to see what kinds of competition (price and non-price) can help one company 'leap' ahead of another.
  • Fad or Fortune (this lesson was designed for 6-8 gr. But see note below for modifying it for 11th grade)
    • Concepts:  Choice, competition, demand, exchange, markets, scarcity, voluntary exchange
    • “I tried a modified version of this with 11th grade students and they loved it. However, for any other high school teachers wanting to tie this in with a lesson on demand, the numbers given do not seem to have a lot of rhyme or reason to them. Students may argue that it does not reflect real market conditions.” - BJ  St. Paul, MN
e.     Role of the government
  • Video Cartoon – “Make Mine Freedom” (1948) Cold war cartoon that compares the tenants of capitalism and communism.
  • Who Decides?
    • Virtual Economics CD, lesson 2 from FOCUS Economic Systems
    • Concepts:  Resource allocation, market economy, command economy
  • Broad Social Goals
    • Virtual Economics CD, lesson 1 from FOCUS Economic Systems
    • Concepts:  Broad social goals (efficiency, equity, freedom, growth, stability), command economy, market economy
  • What and How Much should Government Do?
    • Virtual Economics CD, lesson 6 from FOCUS Economic Systems
    • Concepts:  Role of government, command and market economy
f. Rational self-interest
g. Invisible hand
  • Saving, Investing, and the Invisible Hand
  • Virtual Economics CD – Lesson 17 from FOCUS High School Economics, 2nd Edition
  • Concepts:  Saving, investment, the stock market, the bond market, primary and secondary markets for financial securities, banks, the circular flow of income with financial intermediaries, the “invisible hand”
 PO 4.  Evaluate the economic implications of current events from a variety of sources (e.g., magazine articles, newspaper articles, radio, television reports, editorials, internet sites).
 PO 5.  Interpret economic information using charts, tables, graphs, equations, and diagrams.


Concept 2:  Microeconomics
PO 1.  Describe how the interdependence of both households and firms is affected by trade, exchange, money, and banking:
    a. Why voluntary exchange occurs only when all participating parties expect to gain from the exchange.
  • Why are Some Nations Wealthy
    • Virtual Economics CD, lesson 10 from FOCUS Economic Systems
    • Concepts:  Economic growth, productivity, property rights, saving and investment, physical capital and human capital, natural resources, trade
b. Role and interdependence of households, firms, and government in the circular flow model of economic activity.
  • The Circular Flow(s)
    • Virtual Economics CD, lesson 16, from FOCUS High School Economics, 2nd Edition
    • Concepts:  Productive resources, resource payments, interdependence, circular flow of goods, services, productive resources, and money payments
  • Markets and the Market System
    • Virtual Economics CD, lesson 1 from FOCUS Institutions and Markets
    • Concepts:  Product markets, factor markets, allocative efficiency, circular flow model, shortage, surplus, market prices, law of demand, law of supply
 c. Role of entrepreneurs in a market economy and how profit is an incentive that leads entrepreneurs to accept risks of business failure
  • Entrepreneurship
    • In this lesson, students will learn how to assess the life and work of an entrepreneur from the list of famous entrepreneurs provided, and a list of entrepreneurial traits and characteristics that foster self-worth and individualism. From the Inside the Vault article, "Do You Want to be Your Own Boss?"
  • The Entepreneur in you?
    • Concepts:  Entrepreneurship, incentive, risk
d. Financial institutions and securities markets
e. Importance of rule of law in a market economy for enforcement of contracts.
 
PO 2.  Describe how markets function:
a. Laws of supply and demand
  • Demand and Supply—It’s What Economics Is About!
    • Upon completion of this lesson, students will be able to list the determinants of demand and supply, recognize which factors will cause demand curves or supply curves to shift, determine equilibrium using a demand/supply graph, and show the effects on price and quantity when equilibrium changes. From the Inside the Vault article, "What Is Driving Oil Prices?"
  • Supply and Demand Lesson on YouTube
b. How a market price is determined
  • Markets Interact
    • Virtual Economics CD, lesson 5 from FOCUS High School Economics, 2nd edition
    • Concepts:  Equilibrium price and quantity, supply and demand, interdependence
  • A Classroom Market for Crude Oil
    • Virtual Economics CD, Lesson 3 from FOCUS High School Economics, 2nd edition
    • Concepts:  supply, demand, market clearing price, surplus, shortage
c.     Graphs that demonstrate changes in supply and demand
  • Graphin Girls- AP Economics Music Video #2 Class of 2010
  • Pearl Exchange Activity- A hands-on activity where students buy and sell pearls in a simulated market. 
  • Shifting Curves: Demand and Supply Shifts in the Gasoline Market
    • Students create a graph of gasoline supply and demand and identify the market-clearing price. Students learn about the determinants of supply and demand. They graph a decrease in demand for gasoline and a decrease in supply of gasoline to understand how those factors affect prices. Note: Students should know what supply and demand are and be able to graph supply and demand data as well as draw supply and demand graphs. From the Inside the Vault article, "Why Do Gasoline Prices React to Things That Have Not Happened?"
  • The Market Never Stands Still
    • Virtual Economics CD, lesson 4 from FOCUS High School Economics, 2nd edition
    • Concepts:  Determinants of demand shifts and determinants of supply shifts
d. How price ceilings and floors cause shortages or surpluses
  •    Price Controls – Too high or too low
    • Virtual Economics CD, lesson 6 from FOCUS High School Economics, 2nd edition
    • Concepts:  Markets and prices, supply and demand, price ceiling, price floor, shortages and surpluses, rationing
e. Comparison of monopolistic and competitive behaviors
f. Theory of production and the role of cost
PO 3.  Describe how government policies influence the economy:
a. Need to compare costs and benefits of government policies before taking action
  • Fed Orders Interest Rate Cut
    • Concepts:  Aggregate Demand (AD), deflation, federal reserve, federal reserve structure, fiscal policy, Gross Domestic Product (GDP), inflation, monetary policy, tools of the Federal Reserve
 b.     Use of federal, state, and local government spending to provide national defense; address environmental concerns; define and enforce property, consumer and worker rights; regulate markets, and provide goods and services
  • The Role of Government: The National Debt vs. The Deficit
    • Concepts:  Budget, budget deficit, budget surplus, fiscal policy, national debt, surplus
  • Public Goods
    • Virtual Economics CD, lesson 11 from FOCUS High School Economics, 2nd edition
    • Concepts:  Public goods and services, taxes, non-exclusion principle, shared consumption, “free riding” problems
  • Third-party Costs and Benefits
    • Virtual Economics CD, lesson 12 from FOCUS High School Economics, 2nd edition
    • Concepts:  Market failures, externalities (spillover benefits and costs), transaction costs
  • Rich Man, Poor Man
    • Virtual Economics CD, lesson 10 from FOCUS High School Economics, 2nd edition
    • Concepts:  Income, transfer payments, personal distribution of income, functional distribution of income, proprietors’ income, corporate profits
c. Effects of progressive, proportional, and regressive taxes on different income groups
  • Income Taxes: Who Pays and How Much?
    • Using data collected from the Internal Revenue Service for the tax year 2003, students will become involved in an inquiry of individual federal income taxes. The lesson is divided into sections that address specific questions, such as: Why do we have an individual income tax? What is individual federal income tax? How is it paid? When is it paid? How is the individual income tax structured? What is a perfect tax structure? What are the different categories of taxes? What is the correlation between tax burden and income groups? What if the tax structure were changed? What effects would a different tax structure have on taxpayers? What effect would a different tax structure have on the government? From the Inside the Vault article, "Income Taxes: Who Pays and How Much?"
  • U.S. Income Inequality: It's Not so Bad
    • The lead article in the spring 2010 issue of Inside the Vault discusses redistributing wealth through taxation. In this lesson, students will examine the ability-to-pay principle of taxation. Students will compare a progressive tax system and a flat tax system by analyzing the same household scenarios using one system and then the other.
 d.     Role of self-interest in decisions of voters, elected officials, and public employees
  • Public Choice:  Economics goes to Washington and into the voting booth
    • Virtual Economics CD, lesson 13 from FOCUS High School Economics, 2nd edition
    • Concepts:  Self-interest, expected benefits and costs of voting, information and search costs, special interest effects, government failure
Concept 3:  Macroeconomics
PO 1.  Determine how inflation, unemployment, and gross domestic product statistics are used in policy decisions.
  • Which Came First—Democracy or Growth?
    • Students will compute real Gross Domestic Product (GDP) and GDP per capita for three fictional countries and will answer questions related to actual data on GDP and GDP per capita. The Index of Economic Freedom will be used to compare and contrast the relationship between the degree of a country’s economic freedom and the total output of that country and its standard of living. Students will both map and rank a sample of countries using GDP, GDP per capita and freedom index data. From the Inside the Vault article, "Which Came First—Democracy or Growth?"
PO 2.  Explain the effects of inflation and deflation on different groups (e.g., borrowers v. lenders, fixed income/cost of living adjustments).
  • Economic Ups and Downs
    • Virtual Economics CD, lesson 18 from FOCUS High School Economics, 2nd Edition
    • Concepts:  Business cycles, GDP, Unemployment, CPI, recession, inflation, economic growth, fiscal policy
PO 3. Describe the economic and non-economic consequences of unemployment.
  • What Is Unemployment, How Is It Measured, and Why Does the Fed Care?
    • In this lesson, students read and interpret choropleth maps, which contain unemployment data. They compare verbal descriptions of the labor market from the Federal Reserve’s Beige Book with the mapped data. In addition, students compare unemployment data for different years. Students access or observe how to access this data online.
PO 4.  Analyze fiscal policy and its effects on inflation, unemployment, and economic growth.
  • Aggregate Supply and Demand: The Sum of Their Parts
    • Virtual Economics CD, lesson 20, from FOCUS High School Economics, 2nd edition
    • Concepts:  Aggregate demand and supply, GDP, Fiscal policy, monetary policy
PO 5.  Describe the functions of the Federal Reserve System (e.g., banking regulation and supervision, financial services, monetary policy) and their influences on the economy.
  • Macroeconomic Stabilization Policies and Institutions
    • Virtual Economics CD, lesson 10 from FOCUS Institutions and Markets
    • Concepts: Unemployment, inflation, fiscal policy, automatic stabilizers, monetary policy, central banks (Federal Reserve Bank), discount rate, reserve requirement, open market operations
PO 6.  Explain the effects of monetary policy on unemployment, inflation, and economic growth.
  • Money, Interest and Monetary Policy
    • Virtual Economics CD, lesson 19, from FOCUS High School Economics, 2nd edition
    • Concepts:  Money supply, inflation, open market operations, reserve requirements, discount rate, interest rate
PO 7.  Determine how investment in factories, machinery, new technology, and the health, education, and training of people can raise future standards of living.
  • Learn More, Earn More
    • Virtual Economics CD – Lesson 9 from FOCUS High School Economics 2nd Edition
    • Concepts:  Human capital, income, standard of living
Concept 4:  Global Economics
 
PO 1.  Analyze the similarities and differences among economic systems:

a.      Characteristics  of market, command, and mixed economic systems, including roles of production, distribution, and consumption of goods and services
  • Broad Social Goals of an Economic System
    • Virtual Economics CD, lesson 2 from FOCUS High School Economics, 2nd edition
    • Concepts:  Broad social goals (economic efficiency, equity, freedom, growth, security, stability), tradeoffs, market economy, command economy
b.     Benefits and costs of market and command economies
  • Crossing Borders: The Globalization Debate
    • http://www.stlouisfed.org/education_resources/assets/lesson_plans/08ITV_Globalization.pdf
    • Students will consider both sides of the globalization debate—the benefits and the costs—by reading and discussing the article "Crossing Borders: The Globalization Debate" from the Spring 2008 issue of Inside the Vault. Working in groups, students will analyze statements regarding the benefits and costs of globalization, categorize the statements and discuss them.
c.     Characteristics of the mixed-market economy of the United States including such concepts as private ownership, profit motive, consumer sovereignty, competition, and government regulation
d.     Role of private property in conserving scarce resources and providing incentives in a market economy
PO 2.  Describe the effects of international trade on the United States and other nations:
a.     How people and nations gain through trade
  • Why is Globalization so Controversial
    • Virtual Economics CD, lesson 1 from FOCUS Globalization
    • Concepts:  Economic institutions, barriers to trade, voluntary exchange, specialization, factor endowments, gains from trade
b.     How the law of comparative advantage leads to specialization and trade
  • Econ Concepts in 60 Seconds: Comparative Advantage
  • Why People Trade, Domestically and Internationally
    • Virtual Economics CD, lesson 2 from FOCUS Globalization
    • Concepts:  Absolute advantage, comparative advantage, opportunity cost, production possibilities table
c.     Effects of protectionism, including tariffs and quotas on international grade and on a nation’s standard of living
  • Hey, Hey! Ho, Ho!  Why Do We Need the WTO?
    • Virtual Economics CD, lesson 11 from FOCUS Institutions and Markets
    • Concepts:  International economic institutions, gains from trade, tariffs, public goods, market failures, monetary policy, property rights, competition
d.     How exchange rates work and how they affect international trade
  • The Family Vacation
  • The Big Mac Index 
    • http://www.econedlink.org/lessons/index.php?lesson=156&page=teacher
    • Concepts:  Characteristics of money, currency, exchange rate, price
    • How fast can you say "twoallbeefpattiesspecialsaucelettucecheesep icklesonionsonasesameseedbun?" This question was asked of millions of TV viewers in the now famous 1970s McDonald's television commercial promoting the Big Mac.
e.     How the concepts of balance of trade and balance of payments are used to measure international trade
  • Trade, Investment, and the Balance of Payments
    • Virtual Economics CD, lesson 12 found in FOCUS Globalization
    • Concepts:  Balance of payments, current account, financial account, balance of trade, credits, debits, exports, imports, investment, saving
f.     Factors that influence the major world patterns of economic activity including the different costs of production between developed and developing countries
g.     Economic connections among different regions, including changing alignments in world trade partners
  • Why is Globalization so Controversial
    • Virtual Economics CD, lesson 1 from FOCUS Globalization
    • Concepts:  Economic institutions, barriers to trade, voluntary exchange, specialization, factor endowments, gains from trade, (WTO)
h.     Identify the effects of trade agreements (e.g., North American Free Trade
  • The NAFTA Debate
    • Virtual Economics CD, lesson 18 from FOCUS International Economics
    • Concepts:  Free trade agreements, tariffs and trade policy
Concept 5:  Personal Finance
 
PO 1.  Explain how education, career choices, and family obligations affect future income.
  • Invest in Yourself
    • Virtual Economics CD, lesson 3 from Learning Earning and Investing High School
    • Concepts:  Human capital, income, investment in human capital, opportunity costs
PO 2.  Analyze how advertising influences consumer choices.
PO 3.  Determine short-and long-term financial goals and plans, including income, spending, saving,and investing.
PO 4.  Compare the advantages and disadvantages of using various forms of credit and the determinants of credit history.
  • Extra Credit: It's No Fairy Tale
    • http://www.stlouisfed.org/education_resources/assets/lesson_plans/08ITV_ExtraCredit.pdf
    • This lesson uses a specific scenario to demonstrate how to apply the statistical and economic information in "Extra Credit: The Rise of Short-term Liabilities," the lead article in the fall 2008 issue of Inside the Vault. Students read a story that illustrates some of the trends and concerns discussed in the article. The facts of the story are then analyzed to identify the debt trap and to generate solutions to the problem. Using an online calculator, students calculate the amount of time it takes to pay off a credit card based on the monthly payment amount.


PO 5.  Explain the risk, return, and liquidity of short-and long-term saving and investment vehicles.
PO 6.  Identify investment options, (e.g., stocks, bonds, mutual funds) available to individuals and households.
  • Saving, Investing, and the Invisible Hand
    • Virtual Economics CD, lesson 17, from FOCUS High School Economics, 2nd edition
    • Concepts:  Saving, investment, the stock market, the bond market, primary and secondary markets for financial securities, banks, the circular flow of income with financial intermediaries, the invisible hand.
How Stock Markets Work
 
image
Teacher Helpful Resources
Arizona Council on Economics Education: http://www.azecon.org/
Workshops and courses
 
Council of Economic Education- Key Concept Lesson Plans: http://www.ncee.net/resources/lessons.php
 
Council for Economic Education http://www.councilforeconed.org/

Check out our collection of over 80 economics and personal finance publications for your K-12 classroom.  http://store.councilforeconed.org/

Books referenced in this document from NCEE:  FOCUS High School Economics, 2nd edition, FOCUS Globalization, FOCUS Institutions and Markets, FOCUS Economic Systems, Virtual Economics CD (these books can also be found on the Virtual Economics CD)
 

Econoclass
Economic Concept Photos to use to introduce different economic concepts
Summary:   This is a series of photos depicting scenes we'll likely never see in the real world.  Ask your students to explain why. The photos can be used to introduce new concepts or to review definitions.
 
Economics University online:  www.Reffonomics.com
 
Federal Reserve Bank educational websites

Financial crisis and the Fed’s response: http://www.frbsf.org/econanswers/crisis.htm
 
Foundation for Teaching Economics:  http://www.fte.org/teacher-resources/lesson-plans/
 
National Endowment of Financial Education High School Financial Planning Program
 
Student Resources for High School Economics
 

Technology Resources
Exchange Rates Calculator: http://www.x-rates.com/
Hans Rosling World Development Lecture: http://www.youtube.com/watch?v=hVimVzgtD6w
Highest Movie Tickets sales adjusted for inflation: http://www.boxofficemojo.com/alltime/adjusted.htm
 

Videos:
Crisis of Credit:  http://www.crisisofcredit.com/
Jacob Clifford’s econ lessons in 60 to 90 seconds: http://www.youtube.com/user/ACDCLeadership?blend=2&ob=1
Wall Street Journal videos:  http://online.wsj.com/video