Federal Reserve Bank of Atlanta
DOE Social Studies EOCT Workshop
Sherilyn Narker
Economic and Financial Education Specialist
Address: 1000 Peachtree Street NE | Office: 404-498-8061
www.frbatlanta.org
Increasing scores on the Economics EOCT
• Teach the Principles of Economics
(Economic Way of Thinking)
• Teach economics vocabulary
• Teach the standards interactively whenever possible
(Simulations, problem-based learning, role plays, etc.)
• Use assessments diagnostically and strategically
(Pre- and Post-Testing, Quick Quiz, Exit Cards, etc.)
Teaching the Principles of Economics
Example: Gregory Mankiw’s Ten Principles of Economics
PRINCIPLE #1: People Face Trade Offs
PRINCIPLE #2: The Cost of Something Is What You Give Up to Get It
PRINCIPLE #3: Rational People Think at the Margin
PRINCIPLE #4: People Respond to Incentives
PRINCIPLE #5: Trade Can Make Everyone Better Off
PRINCIPLE #6: Markets Are Usually a Good Way to Organize Economic
Activity
*PRINCIPLE #7: Government Can Sometimes Improve Market Outcomes
*PRINCIPLE #8: A Country's Standard of Living Depends on its Ability to
Produce Goods and Services
*PRINCIPLE #9: Prices Rise When the Government Prints Too Much Money
PRINCIPLE #10: Society Face a Short-Run Tradeoff Between Inflation and
Unemployment
Ideas for Teaching the Macro Principles of Economics
PRINCIPLE #7: Government Can Sometimes Improve Market Outcomes
Fed Lesson: Government Spending and Taxes
Key Ideas:
1. Why does the government provide some goods and services
even in a primarily market driven economy?
2. What market outcomes is the government trying to improve
with specific transfer programs?
Ideas for Teaching the Macro Principles of Economics
PRINCIPLE #8: A Country's Standard of Living Depends on its Ability to
Produce Goods and Services
(Sub principle: An individual’s standard of living depends on the individual’s
productivity within an economy.)
Fed Resource: Gini in a Bottle – Fed essay and student questions
Other Resource: Material World: A Global Family Portrait
Key Ideas:
1. What determines one’s income within a society?
2. What leads to income inequality?
3. What is the relationship between GDP and the standard of living in a
country?
http://www.npr.org/blogs/pictureshow/2010/08/10/129113632/picturingpossessions
Western Samoa GDP 1994 - $0.1849 Billion
Bhutan GDP 1994 - $0.271 Billion
Mali GDP 1994 - $1.8528 Billion
Mexico GDP 1994 - $420.7756 Billion
Japanese GDP in 1994 – $4,689.075 Billion
United States GDP 1994 – $6,946.975 Billion
Ideas for Teaching the Macro Principles of Economics
PRINCIPLE #9: Prices Rise When the Government Prints Too Much Money
(Sub principle: Rising domestic prices lower domestic and international
purchasing power of a currency.)
Fed Resource: The Fed Explained…Inflation
Other Resource: Quiz – Socrative.com; Foreign Exchange Simulation
Other Related Fed Lesson: The Free Silver Movement and Inflation
Key Ideas:
1.
2.
3.
4.
What is and is not inflation?
How can monetary policy help inflation?
How are exchange rates determined?
What happens to value of a currency when the country’s central bank
uses expansionary/loose monetary policy?
The Fed Explained…Inflation
http://www.frbatlanta.org/news/multimedia/12fedExplained_inflation.cfm
Using Socrative to Assess Student Understanding
Foreign Exchange Simulation with Monetary Policy
Round
Number of
Auctioned
“Bucks”
Round 1
Buck #1
Buck #2
Buck #3
Round 2
Buck #1
Buck #2
Buck #3
Round 3
Buck #1
Buck #2
Buck #3
Price in Riyal
Change from
Previous Buck
Auctioned
Reason for
Change
Follow-up Questions
1. Describe what you observed in round #1.
2. Who was the “supplier” of U.S. Dollars?
3. Who was the “consumer” of U.S. Dollars?
4. Why do we need a foreign exchange market?
5. Who facilitates the foreign exchange market?
6. Describe what you observed in rounds #2 and #3.
Vocabulary Building Activities
• Describe how the Federal
Reserve (Central Bank)
uses monetary policy to
promote price stability.
From Mazano Laboratories
• Explain why government
provides public goods and
services and redistributes
income
Vocabulary Building Activities
Vocab Snatch Game
Fed Tools for Economics
•
•
•
•
•
Econlowdown
Spider Chart
Economic Outlook
Jobs Calculator
Federal Reserve Education
Economics Courses Offered
•
•
•
•
•
•
•
•
•
•
Opportunity Cost
Comparative Advantage
Supply and Demand
Fiscal Policy
GDP and Pizza
Great Inflation
Inflation
Monetary Policy
Currency Crusaders of Justice
The Story of Unemployment
Aligned Sample Items from Econlowdown
Gross Domestic Product
In measuring Gross Domestic Product, market value refers to:
a. the number of goods and services sold during a year.
b. the prices of goods produced but not services provided.
Monetary Policy
If inflation were high and rising, the Federal Open Market
Committee (FOMC) would likely respond by doing which of the
following?
c. the price at which a good or service sells in the market place.
a. Increasing the federal funds target rate and selling
government securities
d. the value of sales at all shopping malls, grocery stores and retail
outlets throughout the country.
b. Increasing the federal funds target rate and buying
government securities
Which of the following is a final good produced by a bakery?
a. cake
b. flour
c. sugar
d. eggs
Currency and Exchange Rates
Which of the following events could cause a currency to depreciate?
c. Decreasing the federal funds target rate and selling
government securities
d. Decreasing the federal funds target rate and buying
government securities
Supply and Demand
If producers expect the price of a good to decrease in the future, what
will happen to the current equilibrium price and quantity of that good?
a. A country's interest rate falls relative to the interest rates in other
countries.
a. The equilibrium price and quantity will both decrease.
b. A country's interest rate increases relative to the interest rates in
other countries.
b. The equilibrium price and quantity will both increase.
c. A country's interest rate increases at the same pace of interest rates
in other countries.
c. The equilibrium price will increase and equilibrium quantity will
decrease.
d. None of the above, because interest rates have no affect on
exchange rates.
d. The equilibrium price will decrease and equilibrium quantity will
increase.
Personal Finance Courses Offered
•
•
•
•
•
•
•
•
Cards, Cars, and Currency
Credit Cred
It’s Your Paycheck
Opportunity Cost
Paying and Receiving Interest
Soar to Savings
Time Value of Money
Predicting the Future
Aligned Sample Items from Econlowdown
Interest and Credit Cards
What happens if you pay more than the minimum balance on your
credit card each month?
a. The total amount of interest paid will decrease, and the
amount of time required to pay off the balance will decrease.
b. The total amount of interest paid will decrease, and the
amount of time required to pay off the balance will increase.
c. The total amount of interest paid will increase, and the
amount of time required to pay off the balance will increase.
d. The total amount of interest paid will increase, and the
amount of time required to pay off the balance will remain
unchanged.
Credit Worthiness
Your credit score is determined through the following five factors:
a. Age, gender, race, income, and high school GPA
b. Age, level of education, income, length of time with current
employer, and ZIP code
c. Payment history, debt amounts, length of credit history, new
credit, and credit mix
d. Payment history, income, debt-to-income ratio, years at
current address, and criminal record
Risk vs. Reward
The risk-reward relationship says:
a. Risky behavior deserves an award.
b. Investors who choose less risky investments are
rewarded by earning higher interest rates.
c. There is an indirect relationship between risk of loss of
principal and expected rate of return.
d. There is a direct relationship between risk of loss of
principal and expected rate of return.
e. Investors who choose risky investments always make
more money than investors who choose less risky
investments.
Investment in Human Capital
Human capital includes which of the following?
a. The knowledge that people possess.
b. The talent that people possess.
c. The skills that people possess.
d. a, b and c are all correct.
Topics Addressed
•
•
•
•
•
•
•
•
•
Budgeting
Net Worth
Banking
Stocks
Bonds
Credit Worthiness
Debt Management
Entrepreneurship
Risk vs. Return
Visually appealing SMART Boards, Print Guides, and Mobile Apps!
Katrina’s Classroom Topics
• Investing in Education and
Human Capital
• Budgeting/Delayed
Gratification
• Emergency Savings
• Debt Management & Credit
• Financial Recordkeeping &
Document Storage
• Insurance/Risk Management
• Goal Setting
financial
advisor
Call today to find your financial future.
800-555-5555
Address: 253 Main Street, #169, Matawan
Office: 732-591-9131 | Fax: 732-441-7344
www.financialadvisor.com
financial
advisor
Address: 253 Main Street, #169, Matawan
Office: 732-591-9131 | Fax: 732-441-7344
www.financialadvisor.com
Model Lesson: Teen Unemployment –
What’s the Real Story?
Fed Personal Finance Programs for High School
Program Title
Building Wealth
Econlowdown
URL
http://www.dallasfed.org/educate/pfe.cf
m?tab=1##dallastabs
https://bts.stlouisfed.org/econ_ed/online
_learning/index.php?page=class&cid=77
43
Katrina’s Classroom
http://www.frbatlanta.org/edresources/c
lassroomeconomist/
Personal Finance 101 Chats
http://www.stlouisfed.org/education_res
ources/personal-finance-101-chats/
It’s Your Paycheck!
http://www.stlouisfed.org/education_res
ources/its-your-paycheck-curriculumunit/