STANDARD / 3.00 / Understand economic systems
3.01 / Compare the four economic systems
ESSENTIAL QUESTIONS / § What are the 4 economic systems?
§ What are the advantages and disadvantages of each?
§ Which economic system provides more for its consumers?
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CURRICULUM RESOURCES
Ø EQ 3.01 PowerPoint
Ø Graphic Organizer or Cornell Notes
Ø W1 or W2 writing tasks
Ø Thinkgate Exploring Entrepreneurship item bank
Ø Exploring Entrepreneurship Instructional Forum in Moodle
INSTRUCTIONAL ACTIVITIES // ACTIVITIES / RELEVANCY TO OBJECTIVE / RESOURCES /
1. / Popcorn Economics
§ Visit the website: http://ecedweb.unomaha.edu/lessons/popcorn.htm to prepare for the lesson. (The website details supplies needed and steps for the teacher to follow. The lesson plan also follows the activities guide). The students will experience scarcity, the allocation of resources, and making economic decisions.
§ At the conclusion of the lesson, ask the students, "Who makes the decisions about resources in the United States?" (government & businesses) Then ask students, "What type of Economic System does the United States have?" (mixed) / This fun activity will interest students in the topic of economic systems. It will help students understand that people make choices because of scarcity. When resources are limited, people & societies must make decisions on how to best use their resources. These decisions are made differently in the different types of economic systems. This activity will help the students look at similarities and differences between economic systems based on how economic decisions are made. / http://ecedweb.unomaha.edu/lessons/popcorn.htm
3.01 Popcorn Economics Lesson Plan
Popped popcorn and paper bags as described in the above lesson plan.
2. / PowerPoint Presentation
§ Distribute the 3.01 Key Terms Blank to students.
§ While students view the EQ 3.01 Economic Systems PowerPoint presentation , facilitate a discussion.
§ Have students write their own definitions for the terms in the blanks as they view the PowerPoint presentation.
§ After the students have viewed the PowerPoint presentation, facilitate a discussion with the students, asking various students to share the definitions they wrote for the key terms. / The PowerPoint presentation provides an introduction and overview of the types of economic systems, including definitions of the key terms.
The students must understand the key terms to be able to COMPARE (B2) the economic systems and determine similarities and differences between the systems. / 3.01 Key Terms Blank
3.01 Economic Systems PowerPoint presentation
3.01 Key Terms Defined
(for teacher reference)
3. / Crossword Puzzle
§ Distribute the 3.01 Crossword puzzle to the students.
§ Have students complete the crossword puzzle.
§ Circulate and facilitate as needed.
(This activity may be completed as a homework assignment.)
/ This activity will reinforce the key terms and their definitions to assist the students in understanding the four major types of economic systems. / 3.01 Crossword
3.01 Crossword Key
3.01 Key Terms Defined
Students' completed 3.01 Key Terms Blank
4. / Comparative Economic Systems
§ Visit the website: http://www.econedlink.org/lessons/index.cfm?lesson=EM322&page=teacher to prepare for this lesson. Teachers may want to duplicate the Comparative Systems Worksheet (from the site) prior to the start of class.
§ Students may work individually or in pairs. Have students complete the Comparative Systems Worksheet.
§ Students will visit the CIA World Factbook website for data to complete the worksheet: https://www.cia.gov/library/publications/the-world-factbook/index.html
§ Have students answer the six questions listed on the website. (The answer key is on the teacher website.)
§ Circulate and assist students as needed.
§ When students have completed the activity, facilitate a discussion about the three economic systems. / This activity will increase students' understanding of the characteristics of traditional (developing), command and market economic systems. Students will COMPARE (B2) the geography, people, government, and economy of the United States, North Korea, and Chad. The activity will help students see the similarities and differences among the three different economic systems—market, command, and traditional (developing). / Teacher
http://www.econedlink.org/lessons/index.cfm?lesson=EM322&page=teacher
Student
http://www.econedlink.org/lessons/index.cfm?lesson=EM322
Comparative Systems Worksheet (from student website above)
CIA World Factbook website:
https://www.cia.gov/library/publications/the-world-factbook/index.html
Student notebooks or journals (or students can key the answer to each question at the website and print all six answers).
5. / Characteristics of Economic Systems
§ Distribute the 3.01 Characteristics of Economic Systems comparison chart to students.
§ Have students complete the comparison chart.
§ Circulate and assist as needed. / This activity will allow the students to review the types of economic systems and COMPARE (B2) them by listing similarities and differences in a chart format. The chart format will help the students easily see the similarities and differences among the types of economic systems. / 3.01 Characteristics of Economic Systems
3.01 Characteristics of Economic Systems Key
6. / Comparing Economic Systems
§ Distribute the 3.01 Comparing Economic Systems diagram activity to students.
§ As a culminating and review activity, have students complete the 3.01 Comparing Economic Systems diagram.
§ (The file may be distributed electronically for the students to complete rather than duplicating the activity). / This graphic organizer will give the students another visual aid to help them COMPARE (B2) the four types of economic systems by listing the advantages and disadvantages of each system in a visual format. / 3.01 Comparing Economic Systems
3.01 Comparing Economic Systems Key
INSTRUCTIONAL SUPPORT MATERIALS
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6208 – Exploring Business, Marketing and Entrepreneurship 2008 Unit A – Objective 1.02 – page 37
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POPCORN ECONOMICS
© lesson by Mary Suiter, adapted from a lesson found in Kaleidascope, USA.
Published by the Center for Entrepreneurship and Economic Education, UM-St. Louis.
Lesson Description
In this lesson, students experience scarcity through an activity. Following the activity, students relate the concept of scarcity to situations in school and their community. Students learn that people make choices because of scarcity.
Grade Levels
Grades four through eight
Economic Concepts
· Scarcity
· Capital resources
· Natural resources
Content Standards and Benchmarks
National Standard Number: 1
Productive resources are limited. Therefore, people cannot have all the goods and services they want; as a result, they must choose some things and give up others.
People make choices because they cannot have everything they want.
Natural resources, such as land, are "gifts of nature;" they are present without human intervention Capital goods (resources) are goods produced and used to make other goods and services.
Objectives
Students will:
· Define scarcity as the condition that exists when wants exceed resources available to satisfy wants.
· Define and give examples of capital resources and natural resources.
· Identify scarce resources in countries or regions studied.
· Identify choices societies made as a result of scarcity.
Materials
· Popped popcorn in a brown grocery bag, staple bag closed
· Brown grocery bags stuffed with crumpled newspaper and stapled closed
· Brown paper lunch bags (several per student)
· Alternative snack such as dry cereal
Procedure
1. Explain that a parent or the principal donated a snack for the class and that students will come to the front of the room, row by row, and serve themselves.
2. Call the first row of students up to the front and give them brown lunch bags in which to put their popcorn. Allow them to take as much popcorn as they want, giving them extra lunch bags to hold popcorn if needed.
3. Continue calling tables of students until the grocery bag of popcorn is empty.
4. Students will ask for the popcorn in the other stapled grocery bags. Open the bags and act surprised to find crumpled newspaper. Explain that you thought that all of the grocery bags were filled with popcorn.
5. Apologize to those students who did not receive a snack. Explain that everyone thought there was plenty of popcorn for all. Suggest that, if the first students served had known there was a limited amount, perhaps they might have been careful to leave enough for the rest of the class.
Note: Students are likely to be very angry at the seemingly unfair situation; however, it is the purpose of this lesson for them to experience scarcity.
6. Discuss the following.
A. What is the problem? (There wasn't enough popcorn for everyone who wanted it.)
B. Why does this problem exist? (The amount of popcorn was limited and there were many students who wanted popcorn. Those who were selected first got as much or more popcorn than they could really eat.)
7. Explain that the experience students had with popcorn symbolizes a major problem that all societies face-scarcity. Scarcity occurs because people want many things, but resources available for producing the things people want are limited.
8. Tell students that other groups still need a snack, but there's no popcorn left. Ask student what could be done. (Those with popcorn could share. Teacher could pop more popcorn. Teacher could provide an alternative snack. Those without a snack could go without.)
9. Explain that when faced with scarcity, people and societies must make choices about allocation. When people allocate, they decide how something should be used and/or who should get something that is available.
10. Explain that people and societies make different allocation decisions. Explain that the number of computers available at school is limited. Capital resources are things produced and used to produce other goods and services.
11. Point out that the number of computers available is limited but students and teachers have unlimited wants for the computers. Students and teachers want to use the computers to write, to research, to learn to use software, and so on.
12. Ask the students who decides how to allocate the use of computers at school. (teacher, principal, other faculty)
13. Explain that natural resources are things that occur naturally in or on the earth. Ask the students for examples of natural resources in their community. (land, water, trees, coal, gold, air)
14. Explain that natural resources are scarce even in a country as wealthy as the United States. Point out that often the western part of the United States experiences droughts and people don't have enough water to satisfy all the wants they have for water.
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Name: ______Class: ______
3.01 Key Terms Blank
Understand Economics and Economic systems
Term / Definition /Economics Terms
Economics
Scarcity
Capital Resources
Natural Resources
Human Resources
Entrepreneurial Resources
Types of Economies
Command economy
Market economy
Socialist economy
Mixed Economy
Traditional Economy
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3.01 Key Terms Defined
Understand Economics and Economic systems
Term / Definition /Economics Terms
Economics / Making choices and satisfying the wants and needs of consumer. Economics studies how individuals and societies seek to satisfy needs and wants through incentives, choices, and allocation of scarce resources The word "economics" is from the Greek words οκος [oikos], meaning "family, household, estate," and νόμος [nomos], or "custom, law," and hence literally means "household management" or "management of the state."
Scarcity / The condition that exists when wants exceed resources available to satisfy wants.
Capital Resources / Goods produced and used to make other goods and services.
Natural Resources / “Gifts of nature” that are present without human intervention (ex. land)
Human Resources / The knowledge, efforts, and skills people bring to their work, also known as labor.
Entrepreneurial Resources / The initiative to improve goods and services or create new ones.
Types of Economies
Command economy / Economic system that is run by a central government or authority
Market economy / Characterized by private ownership of the means of production (for example, farms and factories), and supply and demand are responsible for the price and allocation decisions. Individuals decide what, how and for whom goods and services are produced.
Socialist economy / Characterized by more government ownership and central planning. Government, which relies on tax revenues, is far less likely than private businesses to heed price signals or to feel the discipline imposed by market forces.
Mixed Economy / A combination of a command and market economy.
Traditional Economy / The type of economy where people believe in doing things the same as they have always been done in the past.
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Name: ______Class: ______
2.01 Crossword
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3.01 Crossword Key
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Name: ______Class: ______
3.01 Characteristics of Economic Systems
List characteristics for each type of economic system by answering questions in the left column for each type of economic system.
Characteristics / Traditional / Market / Command / MixedWho makes economic decisions?
What is the government's role in the economy?
What motivates the economy?
How are resources allocated?
Is the level of competition high or low in the economy?
List examples of countries with this type of economy.
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3.01 Characteristics of Economic Systems KEY
List characteristics for each type of economic system by answering questions in the left column for each type of economic system.
Characteristics / Traditional / Market / Command / MixedWho makes economic decisions? / Customs govern decisions / Business and Consumers / Centralized Government / Both the market and the government
What is the government's role in the economy? / No official Government role Families or ethnic traditions are the law / No Government role – Run by and Invisible hand / They make all the decisions / Take care of people’s needs (roads, schools, military)
What motivates the economy? / People want to do what past generations have done / Supply and Demand in the market / The Government / The marketplace – the buyers and sellers
How are resources allocated? / Resources are divided out by what the past or elders have done. / Resources are given to the one who pays the given price set by the market’s demand / The government dictates which resources will be used when and where / Government decides some and the market determines the other
Is the level of competition high or low in the economy? / Very low / Very High / Low / High
List examples of countries with this type of economy. / Amish, Pygmies of Congo, Belarus, Eskimos / Does not exist in formal society / China, Cuba, Sweden, and France / United States, England, Australia
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