Ideas for Teaching Economics--Summer Conference 2016
Possible Resources:
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Website link for Marketplace Morning Report: http://www.marketplace.org/popoutplayer
Economics in Action (book) by the National Council on Economic Education
www.econedlink.org
http://www.fte.org
http://www.frbsf.org/education/teacher-resources
Possible Activities:
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Scarcity—Chocolate Activity (see below)
Factors of Production/Circular Flow—Econo Activity (Economics in Action book)
Private Property Rights—Paperclip Activity (many versions exist on the Internet that can be adapted)
Economic Systems—Monopoly; Less/More Free scale; Market vs Command Production Activity (see below)
Business Ownership—Shares of stock activity (see below)
Diminishing Marginal Utility (and substitute products)—Duo Cookie Activity (see below)
Supply—Bead Activity (see below)
Productivity/Law of Diminishing Returns—Book Binder or Tennis Ball activity (many versions exist on the
Internet that can be adapted)
Equilibrium—A Market in Wheat activity (Economics in Action book)
Market Structure—Taste Test activity (see below); Word Strip review activity (see below)
Taxes/Spending—Review State and City budgets (find online and have students evaluate in pairs for main
source of revenue and spending)
Money—Barter activity (Economics in Action book)
Int’l Trade—International Company Report (State Performance Requirement)
Activity Details:
Chocolate Activity—After defining basic economic terms have students write down how many bite-size candy bars
they want of each (Mr. Goodbar, Krackle, Milk, Special Dark). Sometimes students want to know how many there
are—which is irrelevant at this point. Assign one student on each row to calculate the total desired of each for their
row. Write row totals on the board the total of each kind wanted. Then show a bag of the small candy bars (there
should only be enough for about 1 each. Obviously there are more wanted than available. Ask how we should
distribute the bars—should the tallest, oldest, smartest, strongest etc. get what they want? The lesson is that we
use price to distribute scarce resources. Allow students to choose one of their choice (usually there are enough
diverse choices and preferences so everyone can get their first choice).
Monopoly Game—Introduce the different economic systems by playing Monopoly for one class period. Assign
about 4 students to one game board. First, have students play according to the rules for a Command Economy
(players start with $1000, players cannot buy property, only receive $100 when the pass GO, don’t have to pay
luxury or property tax, alter the requirements for Community Chest and Chance cards—for example players don’t
have to pay the doctor bill, but they also can’t receive dividends). Allow students to play for about 10-15 minutes
and listen and make notes of students’ comments. Then start over with Market Economy rules (regular rules $1500
to start with, etc.). Let them finish the class period playing according to these rules. Again listen to the comments.
At the end, have students calculate their wealth (an economic term defined in a previous unit) to see who the
winner it. Debrief by asking the students which way they preferred, even if they didn’t win the game. Share with
the class the comments overheard during each round.
More Free/Less Free Scale Review—Provide word strips with various countries from around the world (at least one
for each student). On one wall post MORE FREE on one end and LESS FREE on the other. Use the Heritage
Foundation (heritage.org) annual report (or another source) to identify where countries fall. Sometimes I allow
students to guess first, then have them move the word strips as we look at the list. This is also useful when they
complete the International Company Report performance requirement.
Market vs Command Production Activity—Divide the class into 2 groups. Provide a set of similar resources for each
group to work with (paper, tape random objects like tennis balls or string or cups or boxes etc.) the more the
merrier. Select one leader from Group 1 and allow him or her to choose one assistant. Take these students aside
and explain that they have all these resources to use to make something. They must decide what will be produced,
how it will be produced and what each worker will do to create the products. Give them about 5 minutes to plan.
While they are planning, explain to the rest of the class that they will be working to produce something. The
students in Group 1 must do exactly what their leaders tell them to do and nothing more. Distribute the resources
from Group 2 so that each student has something. Explain that they can each do whatever they want with their
stuff—they can make into something, trade it, or work with someone else to make something. Dismiss Group 1 to
work with their leaders. Allow about 15 minutes for the students to work. Then bring the groups together to display
what they created. USUALLY Group 1 has one main, often multifaceted project. Group 2 usually has a wide variety
of different goods.
Shares of Stock Activity—Create a slip of paper for each student stating “You own ?? shares of stock”. Students
should not compare papers. Make a few with numbers of 10, 15 or 20. Make more with smaller numbers of 2, 3 or
5. Then explain that the class represents all the stockholders of a corporation and the stockholders need to elect a
board of directors. Ask students for several nominations. With several names on the board, ask students to cast
votes—at this point explain that they get one vote for each share of stock that they own. After tallying the votes,
determine who will be on the board (the chairman of the board will be the one with the most votes). The activity
can be expanded to teach how investors make or lose money as the value of the stock increases or decreases.
Duo Cookie Activity—Ask for a volunteer. Show the package of Duos and ask the class to identify what economic
term it represents (substitute product for Oreo’s). Remind students the definition of utility (satisfaction received
from consuming a product). Have the volunteer eat one cookie and rate the utility on a scale of 1-10. Write the
number on the board. Have the volunteer eat another and again rate it. Repeat the process noting that the utility
will eventually fall (don’t allow a drink in between the cookies). Also define the term “marginal” at this point.
Bead Activity—Introduce the concept of Supply by distributing a baggie to each student containing about 30 small
beads (or enough to go around a normal size wrist) and a length of elastic string. Have students create a bracelet
using the beads they have been given or they can trade colors with each other or with the bucket at the front of the
room. After the bracelets are finished, give students a list of different bead colors and the cost of each color
(different amount for each color). Students will calculate what it cost to make their bracelet. Then draw a supply
schedule on the board listing from lowest to highest possible prices for bracelets (maybe in $5 increments) and ask
students to raise their hand when they could afford to manufacture and sell their bracelet. Note as the price
increases more people are able and willing to produce and sell bracelets. You could expand this activity to include a
discussion about cost vs price and revenue vs profit and productivity or change in supply, etc.
Taste Test Activity—Provide samples of a product of your choice (soda, cereal, etc.) in unmarked cups or other
containers. See if students can determine the name and brand of the product. This illustrates that product
differentiation can be real or imagined.
Market Structure Word Strip Review Activity—Create word strips (enough for one for each student) with names of
businesses. Distribute the strips and have students move to the corner of the room labeled with the market
structure (Pure Price Competition, Monopolistic, Oligopoly, Monopoly) for his or her assigned word strip—some
may be debatable and offers a good opportunity for discussion.
Feel free to contact me for more details or information: [email protected]