Economics Lesson Steps

8/3/11

Complete

Class Procedures

Class Rules Test

Write the following:1. One Rule for Class Attendance

2. One Student Expectation3. One Rule for Cell Phones

4. One Rule for Food and Drink5. Two Class Routines done at the end of

class

Enduring UnderstandingsThe student will understand that parties trade voluntarily when they

expect to gain.

The student will understand that parties respond predictably to positive and negative incentives.

The student will understand that, because of interdependency, a decision made by one party has intended and unintended

consequences on other parties.

The student will understand that scarcity of all resources forces parties to make choices and that these choices always incur a cost.

Essential Questions• Why don’t we make everything we need?

• Why don’t we have everything we need? Why should I trade?• How do you decide whether or not to do your homework?

• Why did you choose to come to school today? • What are some different types of incentives you respond to?

• How do your choices affect others? • Why are the decisions I (or other students) make important to you?• What did you give up recently to get something you wanted?

• Why can’t I have everything I want?• How can the word “costs” describe more than just money?

Historical Themes Short StoryDaily “Write About It”Ticket-Out-The Door

Class Activities

Step 1Look up and define the following terms:

Voluntary Exchange Profit Motive

Economic Interdependence ScarcityStep 2

(Write a short story (a minimum of 15 sentences and a maximum of 25) based on an event in your life or a situation from a movie/book. You are welcome to exaggerate the situation for the

sake of humor or creativity. The story should be appropriate for the school context (no profanity or explicit sexual/drug references).

Please make sure your story illustrates all of the following:1. Two individuals, businesses, or nations must gain by voluntarily exchanging one

good/service/resource for another.2. The reason why both parties considered their trade to be fair. (Why did they agree to the

particular “price” requested by the other?)3. A benefit of relying on the other party for the good/service/resource and a cost of not being

self-sufficient.4. A least two ways scarcity affected the character’s choices.

Activity Steps

Example using Stars Wars

On upon a time, Luke Skywalker realized it was his destiny to bring down the evil empire of Darth Sidious. Unfortunately, he lacked the skills of a Jedi knight. His friends told him to visit a far away planet and ask a Jedi Master named Yoda to train him. Luke was concerned about diverting valuable time and the use of his

xwing ship away from helping the weakening rebel army. However, he knew that the cost of facing Darth Vader and Darth Sidious without the skills of a Jedi was

greater than the benefit his time and ship would provide to the rebel army. Knowing this, he set out to find Yoda. Upon landing on the planet Dagobah, Luke inadvertently stumbles upon Yoda. Yoda recognizes the role Luke is destined to

play in the war against the empire. Although Luke has no money to pay Yoda for his Jedi lessons, Yoda’s incentive to train Luke is his desire to have him defeat

Darth Sidious and restore peace to the galaxy. Although Luke had to give up time and fuel to travel to Dagobah, he could not have trained himself as well as Yoda

trained him. Although Yoda had to use great amounts of energy and time to train Luke, it was worth the price because he could not have defeated Darth Sidious

without Luke.