Teaching with CEE’s New
High School Economics
Martha Rush
Lake Superior College
Feb. 21, 2015
Welcome!
Time
Event
8:30-9:00
Welcome and Overview
9:00-9:45
Lesson #16
9:45-10:30
Lesson #4
10:30-10:45
Break/Discussion
10:45-11:15
Lesson #22
11:15-11:45
Lesson #10
11:45-12:15
Lesson #18
12:15-1:00
Lunch, Wrap-up, Discussion,
Evaluations
Martha Rush
• Teach AP Micro, AP Macro, AP
Psych and Journalism at
Mounds View High School in
Arden Hills, MN (18 years)
• MCEE Board of Directors
• AP Micro CDAC
• AP reader
• Husband, Jeff, teaches at
Maple Grove
• Two sons – Ben and Sam
Introduce Yourself
•
•
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Name
School/Organization
Teaching experience
Other hobbies or interests
• How do you learn best?
• What are your goals for this workshop?
• What do you want to take back to your
classroom?
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•
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28 lessons
Updates of old favorites
More emphasis on macroeconomics
Hands on, written for anyone to pick up and use
New interactives
Powerpoints and handouts available online at
http://hseconomics.councilforeconed.org/
EconEdLink
• http://www.econedlink.org/
• Have you heard about EconEdLink?
• Overview
• Register today!
Lesson 16: The Circular Flows of
Econoland
Lesson 16: The Circular Flows of Econoland
• An update on the “Econoland”
lesson
• Students play the role of
Households and Businesses to
help them understand the
circular-flow model
• Appropriate to use during the
intro unit or as an introduction
to resource markets
Minnesota High School Standards
• 9.2.4.5.1: Describe the role of households,
businesses and governments in the movement
of resources, goods and services, and money
in an economy.
• 9.2.4.5.2: Describe the role of markets in the
movement of resources, goods and services,
and money in an economy.
Productive Resources
Human resources
People: the mental and physical abilities that allow
them to make contributions in the workforce.
Examples: construction workers, factory workers,
teachers, doctors, truck drivers, farmers, secretaries,
actors, engineers, garbage collectors, and many
other occupations
Productive Resources
Capital resources
Goods that were specifically produced in order to
produce other goods.
Examples: machines, equipment, tools, office and
factory buildings, tractors, assembly lines,
computers, grinders, trucks, and many other things
that help in the production process
Productive Resources
Natural resources
An actual or potential form of wealth extracted or
harvested from the natural environment.
Examples: trees, fish, soil, minerals (such as copper,
aluminum, iron ore, gold, and zinc), air, water, fossil
fuels (such as coal, oil, and natural gas), as well as
the space provided by a plot of land
A Description of Production
Natural resources are transformed by
human and capital resources into goods and
services. Thus, human and capital resources
do the work of production, while natural
resources provide the material that they
transform. Because human and capital
resources require energy to work, natural
resources also provide the energy required
for these resources (i.e., food for workers
and fuel for machines).
The Circular Flows in a Market
Economy
The Simulation
• Divide class in ½. Students are assigned to be
Households or Businesses.
– Each Household starts with 12 resources but
wants to end up with Econos by purchasing them
with the $ earned by selling their resources
– Each Business starts with $20 & wants to end up
with more than $20 by producing and selling
Econos
• One student needs to work at the Econo
Factory
Instructions:
1. Collect your materials
– Businesses need $20 and a business badge
– Households need 12 units of random resources
+
+
Human
Capital
=
Natural
2. Resource market 1st
3. Only businesses can manufacture econos
ECONO
Closure Questions
• How did households earn income to buy Econos?
• How did businesses make a profit?
• What were the two principal markets in the
simulation and who were the buyers and sellers
in each of them?
• Describe the physical flows in the economy,
beginning with productive resources.
• Describe the flow of money in an economy
beginning with income.
Optional (Day 2)
• Where is government?
• Activity: 16.4 (in pairs)
– What is the basic role of governments in the
circular flow of economic activity?
Optional: Assessment (Multiple Choice and/or
constructed response)
Reflection
• What worked well?
• What could have worked better?
• Questions about implementation?
Lesson 4: A Classroom
Market for Cocoa
• An update on the “market for wheat” or “market
for oil” activity
• Appropriate to use right after supply and
demand, as an introduction to how markets
achieve equilibrium
• Minnesota High School Standard 9.2.4.5 ...
interactions between buyers and sellers in a
market determines the price and quantity
exchanged of a good, service of resource
Demand
Demand schedule
P
Q
$5
10
$4
20
$3
30
$2
40
$1
50
P
$5
D
$4
$3
$2
0
*Change in price
causes a move along
the curve
$1
10 20 30 40 50
Q
Supply
Supply schedule
P
Q
$5
50
$4
40
$3
30
$2
20
$1
10
P
S
$5
$4
$3
$2
0
*Change in price
causes a move along
the curve
$1
10 20 30 40 50
Q
DJ Econ: Demand & Supply Youtube
The simulation
• Students are assigned to be buyers and sellers
of cocoa
• Each student needs a score sheet and a buyer
or seller card
• Enlist trusted students to distribute cards
• Tally sales prices during the activity
Sample Cards
SAMPLE BUYER CARD
You want to buy a unit of cocoa. You are willing and able to
pay ______ for this unit, but you want to pay the lowest
price you can. The lower the price you negotiate, the
greater your gain.
SAMPLE SELLER CARD
You want to sell a unit of cocoa. This unit cost you ______
to produce, but you want to sell it for the highest price you
can. The higher the price you negotiate, the greater your
gain.
From Lesson 4, High School Economics, 3rd edition
Score Sheet
Transaction
Number
Column A:
Amount on
Card
Column B:
Price Negotiated
1
2
3
4
5
6
7
8
9
10
From Lesson 4, High School Economics, 3rd edition
Column C:
Gain or Loss
(if Negative)
Price per Unit
Round 1
Round 2
$18
$19
$20
$21
$22
$23
$24
$25
$26
$27
$28
$29
$30
$31
$32
$33
$34
$35
$36
$37
$38
From Lesson 4, High School Economics, 3rd edition
Round 3
Price per unit
Market Equilibrium
$38
$36
$34
$32
$30
$28
$26
$24
$22
$20
$18
$16
Demand
Supply
0
4
8
12
16
20
24
Number of units of cocoa
From Lesson 4, High School Economics, 3rd edition
28
32
Price per unit
Surpluses and Shortages
$38
$36
$34
$32
$30
$28
$26
$24
$22
$20
$18
$16
Demand
Supply
What prices would
create a surplus of
cocoa?
What prices would
create a shortage of
cocoa?
0
4
8
12
16
20
24
28
Number of units of
cocoa
From Lesson 4, High School Economics, 3rd edition
32
Reflection
• What worked well?
• What could have worked better?
• Questions about implementation?
Break/Discussion
10:30-10:45
Lesson 22: The Case of the Gigantic
$100,000 Bill
Banking & Money Multiplier
• Minnesota High School Standard 9.2.5.11.2
Describe how various monetary policies of the
Federal Reserve are implemented; explain
how they are likely to impact overall output,
employment and the price level
Preparation for Activity
• Prep: $100,000 Bill (gold certificate)
• Tape, marker, role-playing labels
• Activity 22.2
Brainstorm
• Who do you think creates money? Where
does it come from?
The largest U.S. bill ever printed
Definitions
• Money Supply: total amount of money available in the
economy to purchase goods and services
• M1: simplest measure of money supply includes coins
and paper currency, all deposits in banks and savings
institutions (checkable) and traveler’s checks
• Reserve Requirements: set by Federal Reserve, require
banks to hold a percentage of their transaction
balances as reserves (not lend)
• Required Reserves: portion of banks reserves retained
to meet Federal Reserve requirements
• Excess Reserves: portion of a bank’s reserves in excess
of the required amount
Instructions
• Volunteers
– Keeper of the Money Supply
– Bankers
– Borrowers
• Distribute Activity 22.2
• Keeper found the $100,000 bill: Is it part of
M1?
• Begin the activity – R.R. is 20%
Money Multiplier
• Money Multiplier: is the amount that an
initial $1 increase in excess reserves will
eventually add to the money supply if banks
lend all their excess reserves and all the
borrowed money is subsequently deposited
back into a depository institution or
institutions.
• Money multiplier = 1/required reserve ratio
Interactive Visual
• http://interactives.councilforeconed.org/activi
ty/money-creation/
Questions/Closure
• What is the money multiplier for our example
with a required reserve ratio of 20%?
• With the $100,000 initial deposit, the initial
excess reserves were $80,000. What is the
maximum amount the money supply could
expand as a result of this initial deposit and
the money create process?
• How much total space would we need for the
completed tracings?
Questions/Closure
• If the Federal Reserve raised the required
reserve ratio from 20 percent to 25 percent,
how would the activity have been different?
• If we had used a required reserve ratio of 10%,
how would the activity have been different?
• If money is created when banks make loans,
how is money destroyed?
• What is the relationship between the money
multiplier and the required reserve ratio?
Reflection
• What worked well?
• What could have worked better?
• Questions about implementation?
Lesson 10: Game Theory: One Step
Ahead of the Competition
• An easy step-by-step way to teach basic game
theory even in a regular economics classroom
• Not specifically required in MN SS standards
but fits with 9.2.4.6 … different market
structures have an effect on the profit, price
and production of goods and services
• Students love it!
Neighborly Competitors?
One Friday morning, Jack left home
with a nearly empty gas tank. He
drove out of his neighborhood,
turned left onto Clifton Road and
drove five miles without encountering
a gas station.
Then he arrived at the intersection of
Clifton and Main, where he
encountered two gas stations –
advertising the exact same price.
He shook his head and muttered:
“What we need is more competition
in this town! And a station closer to
my house!”
Perfectly Competitive
Imperfectly Competitive
•
•
•
•
• Few sellers
• High barriers to entry
• Identical or differentiated
products
• Firms can influence price of
the good
Many buyers and sellers
Low barriers to entry
Identical products
Firms have no influence
on the price of the good
The Prisoner’s Dilemma
Moe’s Strategies
Curly’s Strategies
Confess
Don’t
Confess
Confess
5 yrs, 5 yrs
1 yr, 10 yrs
Don’t
Confess
10 yrs, 1 yr
2 yrs, 2 yrs
The Prisoner’s Dilemma
Moe’s Strategies
Curly’s Strategies
Confess
Don’t
Confess
Confess
5 yrs, 5 yrs
1 yr, 10 yrs
Don’t
Confess
10 yrs, 1 yr
2 yrs, 2 yrs
The Prisoner’s Dilemma
Moe’s Strategies
Curly’s Strategies
Confess
Don’t
Confess
Confess
5 yrs, 5 yrs
1 yr, 10 yrs
Don’t
Confess
10 yrs, 1 yr
2 yrs, 2 yrs
The Prisoner’s Dilemma
Moe’s Strategies
Curly’s Strategies
Confess
Don’t
Confess
Confess
5 yrs, 5 yrs
1 yr, 10 yrs
Don’t
Confess
10 yrs, 1 yr
2 yrs, 2 yrs
The Prisoner’s Dilemma
Moe’s Strategies
Curly’s Strategies
Confess
Don’t
Confess
Confess
5 yrs, 5 yrs
1 yr, 10 yrs
Don’t
Confess
10 yrs, 1 yr
2 yrs, 2 yrs
The Prisoner’s Dilemma
Moe’s Strategies
Curly’s Strategies
Confess
Don’t
Confess
Confess
5 yrs, 5 yrs
1 yr, 10 yrs
Don’t
Confess
10 yrs, 1 yr
2 yrs, 2 yrs
The Prisoner’s Dilemma
Moe’s Strategies
Curly’s Strategies
Confess
Don’t
Confess
Confess
5 yrs, 5 yrs
1 yr, 10 yrs
Don’t
Confess
10 yrs, 1 yr
2 yrs, 2 yrs
The Prisoner’s Dilemma
Moe’s Strategies
Curly’s Strategies
Confess
Don’t
Confess
Confess
5 yrs, 5 yrs
1 yr, 10 yrs
Don’t
Confess
10 yrs, 1 yr
2 yrs, 2 yrs
Game Theory Terms
• Game
• Strategy
• Payoff
• Dominant strategy
• Nash equilibrium
• Collusion
Dueling Gas Stations
Dueling Gas Stations
Alex
Low Price
High Price
$1000, $1000
$100, $1200
Low Price
$1200, $100
$250, $250
Pat
High Price
Split or Steal: Golden Balls
• Steve and Sarah
Split or Steal?
Player One
Player Two
Split
Steal
Split
5, 5
0, 10
Steal
10, 0
1, 1
Coke vs. Pepsi
Launch a New Flavor?
Pepsi
Coke
Launch Mango
Don’t Launch
Pepsi
Launch Mango
Coke
-50, -50
100, -25
Don’t Launch
-25, 100
0, 0
Grid numbers represent changes in profits.
Reflection
• What worked well?
• What could have worked better?
• Questions about implementation?
Lesson 18: Unemployment Survey
Learning Target:
Explain how the Bureau of
Labor Statistics defines
and measures
unemployment; analyze
past and recent data to
describe factors that
impact the long-run
growth of jobs in an
economy
(MN 9.2.5.9.3)
INSTRUCTIONS
• Each student receives a Survey Reporting Form
• Each student receives an Employment Status
Card
• Students will conduct the survey and calculate
unemployment as a percentage
• Do not answer questions
EMPLOYED
• did any work for pay or profit during the survey
week
• did at least 15 hours of unpaid work in a familyowned enterprise
• were temporarily absent from a regular job due
to illness, vacation, bad weather, industrial
dispute or various personal reasons
UNEMPLOYED
• had no job at all during survey reference week
• made at least one specific active effort to find a
job during prior four weeks
• available for work OR were not working and
waiting to be called back to a job from which they
had been laid off
UNEMPLOYMENT CALCULATIONS
Wrap up
• Questions about the new book
• Suggestions for implementation
• Contact info:
– Martha.Rush@moundsviewschools.org