Max S Lemonade Stand Dilemma

Max’s Lemonade Stand Dilemma

A Readers Theater

Characters: Max, Eloise, Terry, Juan and Carla.

Setting: The sidewalk in front of Max’s house.

Open: Max is standing behind a lemonade stand as Eloise and Carla walk by. Terry is sitting in the audience with the other class members.

Eloise: “What are you doing?”

Max: “What does the sign say Eloise?”

Eloise: “Lemonade for sale! How much?”

Max: “Fifty cents a cup.”

Carla: “Fifty cents a cup! Are you crazy Max? Fruit punch is only 30 cents at the drugstore.”

Max: “But Carla, I want to buy Spike a new dog house. His old one is falling apart, and a new one costs a fortune -- $95.00!”

Eloise: “I don’t’ think you will sell much lemonade at 50 cents a cup.”

Max: “I’ve just got to get the money before Spike’s birthday and I have only saved $15.00 from my allowance.” (enter Juan)

Juan: “Hey Max! What are you doing?”

Carla: “Max is selling lemonade, Juan, but it is too expensive for me to buy.”

Juan: “How much is it?”

Max: “Fifty cents a cup is what I said, but maybe it is too much. How much would you pay for one cup?”

Eloise: “I might give you 30 cents a cup since it is for a good cause.”

Juan: “I have only 10 cents left from my allowance.”

Max: “That is not enough. I have to pay for the lemons, sugar, and the cups, you know. Plus my little sister let me use the stand on the condition that I pay her two cents on each cup I sell.”

Juan: (Turning to the audience) “Here comes some friends. Maybe they will pay you 50 cents a cup for your lemonade.”

Terry: Hi Max! Are you selling lemonade?

Max: “Yes, Terry. Would you like to buy some? It’s good.”

Terry: “How much?”

Max: “I haven’t decided on a price. Maybe the gang can help.” (points to the audience/class)

Carla: “That’s a great idea.”

Max; (pretending to be counting hands) “How many cups of lemonade would you be willing to buy each day at 50 cents a cup? 1, 2, 3. How many cups of lemonade at 30 cents a cup? 1, 2, 3, 4, 5. How many cups of lemonade would you buy at 20 cents a cup? 1, 2, 3, 4, 5, 6. How much lemonade would you buy at 10 cents a cup? Wow 8! Thanks Gang!”

(Turning back to the other characters.)

“Come back in half an hour. Some friends of mine are going to help me find out how much I should charge for my lemonade. “(Exit Eloise, Jake, Carla and Juan.)

“To be able to tell me at what price I should sell my lemonade, you must also know how much lemonade I would supply per day at each price based on just one pitcher of lemonade. At 50 cents, I would supply 10 cups to the gang, at 40 cents, I would supply 8 cups. At 30 cents, I would supply 5 cups to the gang. But at 20 cents, I would not supply any because each cup costs me 18 cents, and at 20 cents per cup I would only make 2 cents profit on each cup.” (To the class) “So, please find out at what price I should sell my lemonade.”

Economics Vocabulary Quiz 4.E.1.1 Name ______

Economy / Producers / Productivity / Productive Resources / Scarcity / Supply
Demand / Consumers / Market economy / Price / Services / Natural Resources
Capital Resources / Human Resources / Income / Choice / Entrepreneur

Put the number of the matching definition, in the box with the correct vocabulary word.

1. The way a country uses money and resources.

2. People and firms that use resources to make goods and services.

3. The amount of a good or service that producers are willing and able to offer for sale at each possible price during a given period of time

4. The quantity of a good or service that buyers are willing and able to buy at all possible prices during a period of time.

5. Resources made and used to produce and distribute goods and services; examples include tools, machinery and buildings.

6. The amount of money that people pay when they buy a good or service; the amount they receive when they sell a good or service

7. The amount of output (goods and services) produced per unit of input (productive resources) used.

8. One who draws upon his or her skills and initiative to launch a new business venture with the aim of making a profit. Often a risk-taker, inclined to see opportunity when others do not.

9. People who use goods and services to satisfy their personal needs and not for resale or in the production of other goods and services.

10. Payments earned by households for selling or renting their productive resources. May include salaries, wages, interest and dividends.

11. Natural resources, human resources, capital resources and entrepreneurship used to make goods and services.

12. An economic system, where free competition and prices are determined by the interaction of supply and demand.

13. "Gifts of nature" that can be used to produce goods and services

14. The health, education, experience, training, skills and values of people. Also known as human capital.

15. The condition that exists because human wants exceed the capacity of available resources to satisfy those wants.

16. Decision made or course of action taken when faced with a set of alternatives.

17. Activities performed by people, firms or government agencies to satisfy economic wants.

Activity 1

CHARACTERISTICS OF A MARKET ECONOMY

Name______

PRIVATE PROPERTY
Labor resources, natural resources, capital resources (e.g., equipment and buildings), and the goods and services produced in the economy are largely owned by private individuals and private institutions rather than by government. This private ownership combined with the freedom to negotiate legally binding contracts permits people, within very broad limits, to obtain and use resources as they choose.

FREEDOM OF ENTERPRISE AND CHOICE
Private entrepreneurs are free to obtain and organize resources in the production of goods and services and to sell them in markets of their choices. Consumers are at liberty to buy that collection of goods and services that best satisfies their economic wants. Workers are free to seek any jobs for which they are qualified.

MOTIVE OF SELF-INTEREST
The "Invisible Hand" that is the driving force in a market economy is each individual promoting his or her self-interest. Consumers aim to get the greatest satisfaction from their budgets; entrepreneurs try to achieve the highest profits for their firms; workers want the highest possible wages and salaries; and owners of property resources attempt to get the highest possible prices from the rent and sale of their resources.

COMPETITION
Economic rivalry means that buyers and sellers are free to enter or leave any market and that there are buyers and sellers acting independently in the marketplace. It is competition, not government regulation, that diffuses economic power and limits the potential abuse of that power by one economic unit against another as each attempts to further its own self-interest.

SYSTEM OF MARKETS AND PRICES
Markets are the basic coordinating mechanisms in our type of economy, not central planning by government. A market brings buyers and sellers of a particular good or service into contact with one another. The preferences of sellers and buyers are registered on the supply and demand sides of various markets, and the outcome of these choices is a system of product and resource prices. These prices are guideposts on which participants in markets make and revise their free choices in furthering their self-interests.

LIMITED GOVERNMENT
A competitive market economy promotes the efficient use of its resources. As a self-regulating and self-adjusting economy, no significant economic role for government is necessary. However, a number of limitations and undesirable outcomes associated with the market system result in an active, but limited economic role for government.

Activity 2

Name______
COMMERCE CLAUSE
Article I, Section 8 states that Congress shall have the power "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes..."
COINAGE CLAUSES
Article I, Section 8 states that Congress shall have the power "To coin Money, regulate the value thereof..." and "To provide for the Punishment of counterfeiting the Securities and current Coin of the United States..." Article I, Section 10 gives Congress this power exclusively by stating that "No State shall...coin Money..."
COPYRIGHT CLAUSES
Article I, Section 8 states that Congress shall have the power "To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writing and Discoveries;..."
CONTRACT CLAUSES
Article I, Section 9 states that "No Bill of Attainder or ex post facto Law shall be passed..." by Congress. Article I, Section 10 states that "No state shall...pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligations of Contracts..."
EXPORT CLAUSES
Article I, Section 9 states that "No Tax or Duty shall be laid on Articles exported from any State...", and Article I, Section 10 states that " No State shall without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports..."
SEARCHES AND SEIZURES
Amendment IV states that "The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated..."
DUE PROCESS
Amendment V states that "No person shall...be deprived of life, liberty, or property, without due process of the law..." and Amendment XIV, Section 1 states "nor shall any State deprive any person of life, liberty, or property, without due process of law..."
RESERVED RIGHTS AND POWERS
Amendment IX states that "The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people." And Amendment X states "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.
© National Council on Economic Education, New York, NY
Civics and Government: Focus on Economics, Unit 1, Lesson 1

Activity 3

Matching Provisions of the U.S. Constitution with Basic Characteristics of a Market Economy
Name______
Art.1 sec. 8 / Art. 1
sec. 9 / Art.1
sec. 10 / Amd.
IV / Amd.
V / Amd.
IX / Amd.
X / Amd.
XIV
Private property
Freedom of Enterprise and Choice
Motive of
Self-interest
Competition
Markets and
Prices
Limited
Government
© National Council on Economic Education, New York, NY
Civics and Government: Focus on Economics, Unit 1, Lesson 1

North Carolina Industry Project (4.E.1, 4.G.1)

We have learned more about the way the economy works! Now we will be looking at individual industries in North Carolina to determine how they have influenced our communities, state, nation, and the world.

Assigned Industry ______

Group Members ______

Part 1 – Gather Information (Independent)

Please use the questions on the following page to guide your research. You may use print resources or computer resources. Please take notes and cite your sources for each question. If you need additional space you can use notebook paper. Turn this in to your teacher to be checked before moving on to Part 2.

Part 2 – Organize, Produce, Present (Group)

After answering the research questions, you will work with your group members to create an engaging presentation to share your learning with the class.

First, confirm your answers to your research questions with your group members to be sure that your information is accurate. If you have different responses, additional research may be needed.

Then, decide on a presentation method. Choose from the options below, or if you have another creative idea you may discuss with your teacher. Your presentation should be between 4-8 minutes, so please practice with a timer before giving your final presentation. You will need to create index cards to assist in sharing information during your presentation. Each member of the group MUST participate in sharing information. Possible methods include:

· Create a presentation using PowerPoint, Photostory, or Discovery Education Board Builder

· Create a poster or bring in other visual aids

· Create a skit to be acted out with your group members – These should be perfected and video recorded for viewing by the class.

1 / 2 / 3 / 4
Language Objective:
RI.4.9. Integrate information from two texts on the same topic in order to write or speak about the subject knowledgeably. / Student is not able to answer the research questions accurately, even with teacher assistance. / Student is able to read and understand information with assistance.
Student is able to answer some of the research questions accurately. / Student is able to integrate multiple sources on the topic in order to answer research questions accurately. Student is able to cite where information was found. / Student is able to integrate multiple sources skillfully and is able to clearly communicate about his/her topic, showing an advanced understanding of the material.
Content Objective:
4.E.1.3 Analyze the historical and contemporary role that major North Carolina industries have played in the state, nation and world. / Student shares facts found about industry. / Student shares a simple analysis of a North Carolina industry, using limited evidence to support the importance and effect of the industry in the state, nation and world. / Student will analyze a North Carolina industry, using evidence from multiple sources to support the importance and effects of the industry in the state, nation and world. / Student will analyze of a North Carolina industry, synthesizing evidence from multiple sources with claims and conclusions on the importance and effects of the industry in the state, nation and world.
Work Habits / Student is off task and needs constant reminders to complete assignment. / Student is off task often and sometimes needs reminders to complete assignment. / Student is able to work independently and asks for help when needed.