Background Info | Lesson
One | Lesson Two | Lesson
Three | Lesson Four | Lesson
Five
Handouts for: Lesson One | Lesson
Three | Lesson Four | Lesson
Five
Background Information for Lessons #1
- #5:
In most societies, people have a wide variety of
economic
wants. Wants that can be satisfied by the consumption of goods
and services are known as economic wants. Economic wants can vary from
society to society but usually include wants for things such as food, clothing,
shelter, medical care, entertainment, and leisure time. Some wants are
provided by the government and others are provide by private producers.
For example, public transportation is provided by the government in many
cities and even in the rural areas of some countries. In other countries,
people want a car or other means of transportation.
Most students will say their wants are not satisfied because there is not enough money. Accept this answer at this time. The real reason their wants are not satisfied is that we have limited productive resources with which to produce our wants. Labor, the productive resource providing most of the students' wants, is limited by quantity and quality. More can be produced if the labor resource is better educated or trained and if it spends more time in production.
In the first activity, students learn about goods that satisfy economic wants as they create a Wants Catalog. They understand that economic wants are unlimited and that productive resources are limited. This scarcity of resources causes us to make choices or decisions about what to consume. These decisions help the producers to know what to produce.
The second activity explores the concept of services and the skills necessary to provide a service. The students learn that there are ways to improve their skills such as attending school or taking special classes or lessons. When labor resources are improved, this is known as an investment in human capital. Capital tools are used by producers of services to help them produce.
The fourth activity focuses on the opportunity cost incurred when consumers make decisions. Students choose from among five wants and identify the opportunity cost of their choice.
In the fifth activity, students apply the concept of opportunity cost to production. They learn that productive resources are limited and that producers must make decisions about what to produce.
All of the above are personal choices that must be made by the students as consumers and producers. Students must know that every time a choice is made an opportunity cost is incurred. This is one of the most important concepts in economics.
Objectives:
(1) To understand that economic wants can be satisfied by the consumption
of goods or services.
(2) To understand that economic wants are unlimited.
(3) To understand that unlimited economic wants cause us to make choices
because we have limited amounts of productive resources.
Focus Activity Materials:
(1) catalogues, advertisements, or magazines with pictures
of items students would want
(2) 50 pages of drawing paper (or 30 pages of chart paper)
(3) index cards or drawing paper
(4) scissors
(5) glue
(6) crayons or markers
(7) large black marker
(8) piece of cardboard for back of book
(9) Handout 1.1 - one per student
(10) chalkboard or chart paper
Focus Activity Preparation:
(1) Using a large black marker, write a letter of the alphabet on a
sheet of drawing paper (or chart paper if you want to create a big book).
Save the extra sheets of drawing paper for letters with many wants. You
may need to insert pages for wants beginning in certain letters.
(2) Create a title page. Catalogue of Economic Wants by _______'s Class
(Your Name)
(3) Cut cardboard to fit as back cover of book.
(4) Copy Handout 1.1
Directions on Using Focus Activity:
Know: (This section helps to focus attention of the students by connecting
to their experiences or knowledge.) Ask students if they ever want something
they can't have. Have a few students share their wants and the reasons
they can't have their wants satisfied.
Link: Have students think about things they want during the next few days. Ask them to assess how much satisfaction they would receive by consuming that economic want.
Procedure:
(1) Tell students that they are going to spend some time thinking about
the things they want. Explain that economic wants can be satisfied by consuming
a good or service. The desire for leisure time is also an economic want
because you need time to consume certain goods or services.
(2) Begin by brainstorming in total group a list of students' economic
wants. List each item on the chalkboard or on chart paper. Do not allow
students to comments or judge others' wants.
(3) After a lengthy list is generated (more than one item per student)
and each student has given input, tell students that they will create a
catalogue of wants.
(4) Explain that the catalogue will have many items in it because wants
are unlimited and are individual. Each person may want different things.
(5) Give students three minutes to generate an individual want list
on the provided hand-out. Have students identify the first letter of the
item in the provided space.
(6) Go through each letter of the alphabet and have students tell the
name of any wants beginning with that letter. List the want and the name
of the student. If two students have the same want, determine which student
will locate the picture and write the description. One option is to have
the students work together.
(7) Give the students catalogues, magazines, and anything with pictures
of items students would want.
(8) Have students locate and clip a picture of each want or draw a
picture. Option: If students can write complete sentences, have them write
descriptions of their wants using adjectives to create a mental image.
(9) When students have finished drawing or locating pictures of their
wants, have them glue their wants on the appropriate pages of the catalogue
(and copy the written description).
(10) Show students the completed book of economic wants. Discuss that
wants are plentiful if not unlimited. Most people cannot have everything
they want, therefore, we must make choices.
(11) Invite a few students, one at a time, to come to the front of
the class to identify the one thing he / she would want. Have the student
share why that item was chosen.
(12) Explain that because our wants are unlimited and the resources
needed to produce them are limited, we must make choices. We try to choose
things that will bring us the most satisfaction. Sometimes we are satisfied
by giving to others the things they want.
(13) Allow students to take turns reading the catalogue of economic
wants. Display the catalogue in the library, school office, or any other
place where parents can see the student project.
Link: Have students think about things they want during the next few days. Ask them to assess how much satisfaction they would receive by consuming that economic want.
Objectives:
(1) To understand that economic wants can be satisfied by consuming
goods or services.
(2) To understand that they can use their labor resource to provide
economic services desired by their families or others.
(3) To understand the importance of investing in human resources by
learning more skills.
(4) To understand that capital resources are often needed in order
to provide services.
Focus Activity Materials:
(1) small prize for two students: stickers or anything valued by the
students
(2) 15 pieces of tag board or some type of heavy weight durable paper
(3) crayons or markers
(4) large clear bowl (a paper bag or other container can be substituted)
Focus Activity Preparation:
(1) Determine the way to assign students to work in pairs based on
their ability to work together and the skills they can provide.
(2) Cut the tag board into 2" x 5" strips.
Directions on Using Focus Activity:
Know: (This section helps to focus attention of the students by connecting
to their experiences or knowledge.) Ask students if they ever want something
that someone does for them such as a haircut. Encourage students to share
some services they desire.
Procedure:
(1) Define services as things people do for you. Explain that they
are physically intangible things that satisfy wants such as education,
medical care, or protection. Define goods as physically tangible things
that satisfy economic wants such as toys, clothes, food, or books.
(2) If you created the catalogue of economic wants using Handout 1.1,
read a few pages and categorize the wants according to goods or services.
Most of the wants will be goods.
(3) Assign students to work in pairs to create a list of services they
consume. Offer a prize to the pair of students creating the longest list.
(4) Have the students with the longest list read their list. Write
the services on the board or chart paper. Invite other students to add
to the list created by these students.
(5) Select a service from the list and discuss the resources (or inputs)
needed to produce this service. If this service is a hair cut, the resources
would include things such as combs, brushes, scissors, razors, blow dryers,
curling irons, chair, sink, water, shampoo, etc. Discuss the importance
of the skill of the person performing the service. Discuss what would happen
if the hairstylist was not skilled. Discuss where the hairstylist could
receive training.
(6) Have the students think of services they could provide for others
at school or at home. List these services on the board. Discuss the skills
needed to provide these services showing the students that they already
possess valuable skills. List more services than the number of students
in your class. These services can include: clean your room, carry out the
trash, make your bed, tutor someone in need, erase the chalkboard, help
cook dinner, take the dog for a walk, etc.
(7) Assign one service to each student in the class. Give one tag board
strip to each student. Have the student write the assigned service on the
tag board strip. For example: I will provide the service of _________.
In order to provide this service, I will need to use these resources: (list
resources including the needed labor skills.) On the back of the coupon,
have the students illustrate the service being provided. The completed
strip is a service coupon.
(8) Have each student share the completed service coupon and drop it
into the clear glass bowl.
(9) Discuss again that the students have the necessary skills to provide
the services on the coupons. Discuss ways for the students to learn of
develop new skills. Explain that people with more skills usually receive
higher wages in the workplace. When they learn more skills they are investing
in human resource development.
(10) Restate that special skills are needed. Explain that the people
providing the service is known as labor or human resources (the people
who do the work needed to provide a good or service.
(11) Explain that the tools used to provide the service are known as
capital resources (human-made inputs into production).
(12) Explain that over the next few years the students will have many
choices to make about investing in the development of their human resource.
They should recall that people with more skills and training earn more
in the workplace as they decide if they should learn more skills or drop
out of school in order to work.
(13) At the end of the day, have each student select a coupon from
the bowl and read it to the class. The student should provide that service
either at home or at school. The following day, ask the students if they
provided the services.
(14) Repeat Step #13 for several days to reinforce the understanding
that the students have skills needed to provide services that satisfy economic
wants.
Link: Ask the students if they have ever thought about a job they would like to have when they are grown. Explain that as a teacher you provide a service. Discuss the skills you must have and how you obtained these skills. Discuss the capital resources needed to provide your service. Have students share a few of the jobs they want that provide services for people. Discuss the skills needed, ways to learn those skills, and the capital resources needed.
Objectives:
(1) To understand that economic wants can be satisfied by consuming
goods or services.
(2) To understand that they can use their labor resource to provide
economic services needed in their classroom.
(3) To know that skills are necessary in order to provide services.
(4) To understand the job application and interview process.
(5) To learn that income is earned from providing a service.
(6) To know the opportunity cost of providing a service for the class.
Focus Activity Materials:
(1) Handouts 1.3.1 and 1.3.2
(2) Class currency*
*This can be designed and determined by you or you can use the lessons in section 2 on creating a classroom currency to involve the students in the process and to teach about money as a medium of exchange.
Focus Activity Preparation:
(1) Make one copy of Handout 1.3.1 for each service needed by the class.
(2) Make one copy of Handout 1.3.2 for each employment period.
(3) Produce class currency.
Directions on Using Focus Activity:
This activity takes more than one class period. It can be shorter by
omitting the formal job application process. The time is well spent and
results in a process that
continues throughout the school year and benefits the productivity
in the class. An on-going bulletin board is created and the stage is set
for a classroom management
plan.
Know: (This section helps to focus attention of the students by connecting to their experiences or knowledge.) Review the meaning of services with students. (Services are things people do for you. They are physically intangible things that satisfy wants such as education, medical care, or protection. Goods are physically tangible things that satisfy economic wants such as toys, clothes, food or books.) Ask students to list a few services needed to help the class function such as erase the board, tidy the library, return graded papers, etc. Explain that workers providing services use skills such as organization, writing, scheduling, memory, etc. in order to provide the services. For example, a student providing the service of erasing the chalkboard must remember to ask the teacher what needs to be erased at the end of the day and then must provide the service. The worker will also need to know how to clean the board and how to clean the eraser. The teacher should not need to remind the worker. These are necessary skills.
Procedure:
Day 1:
(1) Challenge the students to generate a long list of services needed
within the class to help the learning process function more efficiently.
The objective is to list as many things as possible without judging any
of the ideas. The evaluating process occurs later. As the teacher, you
may suggest ideas also. Do not stop brainstorming when there is a lull
in responses. This usually means the students are switching their thinking
to new paths.
(2) When the ideas have subsided, ask the students to review the list
looking for jobs that could be easily combined and for jobs that would
be most helpful. Think of appropriate job titles for the tasks on the list.
(3) Create a second list of services that you and the students would
like to have performed for the class. Assign each service a descriptive
title.
(4) Create cooperative learning groups of three and four students.
Give a job title to each group. (Some groups may receive more than one
job title depending on the number of jobs and groups.) Have each group
write a job description for the given job, to list the skills required
to effectively perform the service, to determine the frequency of the service,
and to determine the pay for services rendered. Use Handout 1.3.1 to summarize
and to share the information with the class.
(5) Have one student from each group serve as the spokesperson and
to share the information from the job description Handout (1.3.1) with
the entire class.
(6) Ask students to think about the jobs described and to determine
if they want to apply for a job. They have one night to make a decision
before the first round of job applications.
Day 2:
(7) Review the job descriptions and the necessary skills. Ask the students
to decide if they want to apply for a job. Note that providing a service
for the class is work. Many students may find it to be a rewarding experience.
They will be paid for their work. This payment is income -- wages or salary
earned for producing a service. If hired for a job, the students will be
giving up work time, leisure time, or recess time. The alternative use
of the time needed to provide the service is the opportunity cost. The
student hired to erase the chalkboard is giving work time in order to provide
the service and to earn an income.
(8) Distribute job applications to students desiring to apply for a
position and assist them with the application process. Note the importance
of using correct spelling and grammar in order to impress the employer.
(9) Explain that references are the names of people who, if contacted
by the employer, would give a positive report of the student's past work
experiences. This reference could be a teacher, parent , friend, or previous
employer who knows the skills and work ethic of the student.
(10) (This step is optional. The applications can be reviewed by you
or a committee of students and hired based on the application. However,
if time permits, modeling the application and interview experience helps
to reinforce the importance of work experience, work ethic, and skills
development to future employment.) Ask students applying for the jobs to
come prepared for a job interview the following day. Students should dress
appropriately and prepare responses to questions about past work experience
and / or skills needed for the job.
Day 3:
(11) Depending on the number of jobs and applications, conduct interviews
in front of the class. If many students are applying for the positions,
select one or two positions and interview all of the applicants. If you
have a large number of applicants, you can eliminate a few due to incorrect
spelling or grammar or omission of information on the application. It is
important to model the interview process with several students. You should
serve as the employer (interviewer) or select another adult or older student
who will ask questions appropriate to the position for which the applicant
is applying.
(12) Model five or six interviews for the class. If many interviews
need to be conducted, ask older students, parents, or other teachers to
assist with the process and have several interviews being conducted at
the same time.
(13) Select a student to hire for the given period for each position
(Handout 1.3.2). Explain that other students will be hired for the next
employment period. For young students, one or two weeks is an appropriate
employment period. It is preferred to have jobs that are performed daily.
If a student does not remember to perform the service or if the service
is not done well, the student should not be paid. Explain to the student
what needs to be done in order to receive the pay.
(14) Hire new students for the new employment period. You do not need
to conduct interviews, only use the job application process. If you send
home newsletters, you can list the jobs and the employees for each period
enabling families to support the process.
Bulletin Board:
(15) Create a bulletin board with pictures of animals, storybook characters,
or student drawings of someone performing each service. Title the board,
Produces of Services. Use library card pockets attached to the characters
or placed beside them to hold the name of the student currently providing
the service. Post each job description by the picture representing the
job. This will help to remind you and the students.
Objectives:
(1) To understand that economic wants can be satisfied by consuming
goods or services.
(2) To understand that when a choice is made an opportunity cost is
incurred
(3) To know that the opportunity cost is the next best foregone alternative.
Focus Activity Materials:
(1) Handout 1.4.1
(2) Five items students in your class would want*
(3) Five bags large enough to cover the five items.
*Select five items students in your class would want that are affordable. Purchase these. The students will keep the items at the end of the activity.
Focus Activity Preparation:
(1) Make one copy of Handout 1.4.1 for each student.
(2) Put one item in each bag.
(3) Select five students to prepare advertisements for the items in
the bags. Ask each student to select one item and to prepare a minute advertisement.
The advertisement should be "catchy" and give information that would make
the other students want the item. The students must be truthful about the
item. Encourage creativity. The students may work together to generate
ideas or may prepare their advertisement at home the evening before.
Directions on Using Focus Activity:
Know: (This section helps to focus attention of the students by connecting
to their experiences or knowledge.) Remind students that economic wants
can be satisfied by consuming goods and services. Ask students to share
economic wants they have consumed in the past few days. Ask students if
they wanted some things they were not able to have. Discuss why students
could not have everything they want. (Economic wants are unlimited and
productive resources are limited.)
Procedure:
(1) Have each of the selected students give his / her advertisement
for the class. All other students are the "consumers."
(2) After advertisements are completed, have each consumer use Handout
1.4.1 to rank items with one being the best preference.
(3) Tell the students you will give one item to each of four consumers.
(4) Select one consumer to share his / her preferences with the class.
Have the advertisers stand in order of the stated preferences.
(5) Ask the consumer to choose one want. This should be the first preference.
Discuss why the student selected this item and what was given up when this
decision was made.
(6) Explain that the next best foregone alternative is the opportunity
cost. The student gave up the second item - not all five items. You were
giving one want only.
(7) Repeat steps 4 and 5 and have the second consumer select a want
and identify the opportunity cost.
(8) Repeat procedure two more times with a third and fourth consumer.
Let the advertiser with the last item keep the item.
(9) Explain that every time a choice is made, an opportunity cost is
incurred. Some examples include:
(i) If you choose to take music or art lessons after
school, you give up the opportunity to play with your friends.
(ii) If you choose to have ice cream for a snack,
you give up the opportunity to have candy.
(10) Have students think of examples of opportunity costs and fill
in the blanks.
-- If you choose to __________after school, you give up the opportunity to__________.
-- If you choose to have _________for a snack, you give up the opportunity to have ___________.
-- If you choose to have ____________for a pet, you give up the opportunity to have ____________.
-- If you choose to have _____________for lunch, you give up the opportunity to have ______________.
(11) Have students work in pairs to create opportunity cost sentences like the ones listed above. Students can write words in the blanks or can draw pictures. Create a bulletin board to display the student sentences.
When I make a choice, I give up something ......
When I choose to _________________I give up the opportunity to_______________
When I choose to _________________I give up the opportunity to_______________
When I choose to _________________I give up the opportunity to_______________
When I choose to _________________I give up the opportunity to_______________
When I choose to _________________I give up the opportunity to_______________
........known as the opportunity cost.
Objectives:
(1) To understand that producers make choices about what to produce
with the limited resources.
(2) To understand that when a choice is made an opportunity cost is
incurred
(3) To know that the opportunity cost is the next best foregone alternative.
Focus Activity Materials:
(1) Handout 1.5.1
(2) One sheet of drawing paper for each student
(3) Crayons, paints, or markers
(4) Pictures of fish
(5) Tools used for local fishing
Focus Activity Preparation:
(1) Make one copy of Handout 1.5.1 for each student.
(2) Display items used for local fishing with pictures of fishing and
of fish
Directions on Using Focus Activity:
Know: (This section helps to focus attention of the students by connecting
to their experiences or knowledge.) Remind students that economic wants
can be satisfied by consuming goods and services. Ask students to share
things their friends and families produce. These may include home production
and jobs that produce goods and services. (Economic wants are unlimited
and productive resources are limited.)
Procedure:
(1) Gather students around in a circle. Discuss their fishing experiences.
Where do people fish? What type of fish do they catch? How do they catch
the fish? What do they do with the fish they catch? Have they been to a
fish market? What did they see? How did it smell?
(2) Ask one student to role play the fisher person.
(3) Read the following scenario. Change the names of the people, the
river, the fish and the fishing gear to names typical to your part of the
world.
Latisha woke up excited before sunrise on Saturday morning. Her Uncle Joshua was taking her fishing for the first time. She had a shiny new fishing pole and new ures to attract the fish. Uncle Josh had taught her how to make the lures. This was great fun. She made lures using many colors of feathers. Latisha dressed in cool clothes and waited anxiously for Uncle Josh to arrive. He joined her for a big breakfast of pancakes and syrup. They loaded their fishing equipment and headed to a secret spot on the shores of the Buffalo River. Uncle Josh explained that they must arrive early to catch the fish because the fish ate breakfast when they woke up. By sunrise, Latisha and Uncle Josh were standing on the river bank casting their lures into the river. After three hours of fishing, they had caught four bass. Latisha was very excited every time they reeled in a fish. Uncle Josh said the fish really liked the lures she had made. When they arrived home, Uncle Josh gave all four of the fish to Latisha. He told her that she had an important decision to make. She had caught the fish and now she must decide what to produce with them. Her choices included fried fish, fish stew, broiled fish, grilled fish, or fish pasta. Her family would include five people for dinner. Her brother, Jeremy, agreed to help Latisha prepare the meal once she decided what to produce.
(4) Tell students that they must each help Latisha make a decision about
what to produce for dinner. Explain that her resources, the fish, are limited.
She would like to produce the stew that is her father's favorite dish and
the grilled fish that she likes. Her sister loved fish and pasta dishes.
There were not enough fish to fulfill every one's wants.
(5) Give students handout 1.5.1 and then have them work in pairs to
help Latisha to make a choice. Ask them to identify her opportunity cost
(her next best foregone production opportunity).
(6) Have each group share their decision and explain how they determined
what to produce.
Link: Discuss local production. What resources are available for production? How are these decisions made? Some global examples include China's production of rice. The climate, soil, and culture make rice production a popular and productive choice. Brazil produces a lot of coffee because of its climate. It exports (sells and ships to other countries) much of the coffee in exchange for other products desired by Brazilians. Italy and other Mediterranean countries produce many olives. They grow well in a hot climate with scarce water. The Italians use a lot of olive oil but once again they specialize in production and trade with other countries.
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