barter and money - database of k-12 resources
TRANSCRIPT
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BarterandMoneyOverviewInthislesson,studentswillgainanunderstandingoftherolemoneyplaysintheUSeconomy.Thelessonbeginswithasimulationofabartereconomyanddiscussionoftheneedformoney.Thestudentswillthenlearnaboutthecharacteristics,functions,andtypesofmoneythroughdiscussionandreadinganinformativecomicbookaboutmoney.Grade10NCEssentialStandardsforAmericanHistory:TheFoundingPrinciples,Civics&Economics• FP.E.2.1-Explainthebasicconceptsoftrade(e.g.,includingabsoluteandcomparativeadvantage,
exchangerates,balanceoftrade,gainsfromtrade,etc.)
EssentialQuestions• Whatisthedefinitionandfunctionofmoney?• Whydosocietiesusemoney?• Whatcharacteristicsarenecessaryformoneydobeusedeffectively?Materials• Bartersimulation(Handout1),attached• “TheStoryofMoney”comicbooks;copiesareavailableat
http://ia600202.us.archive.org/23/items/gov.frb.ny.comic.money/gov.frb.ny.comic.money.pdf• “TheStoryofMoney”Guidedreadingquestions(Handout2),attached• PictureofUScurrency(Visual1),attached• Sampletestquestionsandanswerkey,attached
Duration45-60minutesProcedure
WarmUp:BarterSimulation1. Asawarmup,thestudentswillparticipateinasimulationofbarteringgoods.Teachershould:
• Print1-2copies(dependingonclasssize)ofHandout1:BarterSimulation.• Cutthesheetsonthesolidlines(notthedashed),sothateachstudentwillreceiveonesquarethat
includesbothagoodthatthey“want”andagoodthatthey“have”.• Youmaywanttoprintasquareforyourselfaswellsothatyoucanmodelthedifferencebetweena
“want”anda“have”• Giveeachstudentasquare.Youmaywanttoalreadyhavetheseplacedonstudentdesksturnedover
withinstructionsforstudentsnottolookattheirsheetuntiltoldtodoso.2. Projectandexplainthefollowinginstructionstostudents:
• Eachofyouhasbeengivenasheetofpaper.Onthissheetofpaper,youaregivenaparticulargoodthatyouhave.Example:“Youhave4balesofhay”.Thesheetofpaperalsostatesagoodthatyouwant.Example:“Youwant5pigs”
• Thegoalofthesimulationisforyoutotradewithyourclassmatessothatyour“want”isthesamethingasyour“have”
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• Inordertotrade,youshouldtearyoursheetofpaperatthedashedline.Youmaytradeawayyour“have”,butyoumustkeepyouroriginal“want”
• Whenyournew“have”matchesyouroriginal“want”,returntoyouseat.3. Allstudentstobeginthebarter.Donottrytoworkitoutsothateverystudentwillbeabletofind
someonetotradewith.Therealgoalofthesimulationisforsomestudentstonotbeabletomatchtheir“have”withtheir“want”,butdonottellthestudentsthisbeforehand.
4. Allowthesimulationtogoonforabout5minutes.Noteveryoneisgoingtobeabletoreachtheirgoal,somonitorandendthesimulationwhenyouthinkasmanypeoplehavefoundamatchasaregoingto.Afterstudentshavereturnedtotheirseat,askstudentsthefollowingquestionsanddiscuss:• Raiseyourhandifyouwereabletomatchyour“want”andyour“have”afteronetrade?Twotrades?• Raiseyourhandifyouwerenotabletomatchyour“want”andyour“have”fromtrading?• Whyweresomeofyouallabletogetsomeonetotradewiththemandotherswerenot?• Wasthereanyonewithagoodthatnoonewanted?
5. Transitionintodiscussingwhysocietyhasreplacedtheprocessofbarterwiththeuseofmoney.Define
barterforthestudentsandprojectthefollowingdefinitionontotheboard:• Barterisatypeoftradeinwhichgoodsorservicesaredirectlyexchangedforothergoodsand/or
services,withouttheuseofmoney.6. Drawa“T-chart”ontheboard,labelingonecolumnwitha“+”signandtheotherwitha“-“sign.As
studentsdiscussthefollowingquestions,recordtheirresponsestothefirsttwoonthechart:• Basedonthesimulation,whatarethebenefitsofbarter?• Basedonthesimulation,whatarethedrawbackstousingbarter?• Howdowegetthethingswewantnow?• Whydoyouthinkmoneyhasreplacedbarter?• Inwhatwaysisusingmoneymoreefficientthanbarter?• Whatarethedrawbackstousingmoney?
Ø Note:Ifyouhavetime,studentsmaybenefitfromfillinginagraphicorganizertocompareabarter
economyandamoneyeconomy.Seetheexampleat:http://www.readwritethink.org/lesson_images/lesson275/compcon_chart.pdf
7. Next,projectthedefinitionofthewordmoneyontheboard:
• Moneyisanythingthatisgenerallyacceptedaspaymentforgoodsandservicesandrepaymentofdebts.
8. Ontheboard,projectimagesofUnitedStatescurrencysuchasVisual1(attached).Askthestudentstobrainstormwords/characteristicsthatcometomindastheyobservetheimage.Recordtheirresponsesontheboard.Asstudentsbrainstorm,encouragethemfocusonthevariouscharacteristicsthatallmoneyhasincommon,ratherthanjusttheUSdollar.Extendtheactivitybygivingeachstudenta2-3stickersandinstructingthemtovoteonthecharacteristicsofmoneythattheythinkaremostnecessary.Leadthestudentstothefollowingcharacteristicsthatmoneyneedstobeeffective:
• Durability• Portability• Acceptability• Divisibility• Stabilityinvalue
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9. Passoutcopiesof“TheStoryofMoney”comicbookandtheattachedguidedreadingquestions(Handout2).Havestudentsreadthecomicbookandcompletethequestions.(Comicbooksareavailableonlineathttp://ia600202.us.archive.org/23/items/gov.frb.ny.comic.money/gov.frb.ny.comic.money.pdf.Amaximumof30copiesarefreeperteacherandtakeapproximatelytwo-threeweekstoarrive.Teacherwillreviewanswerstoquestionswiththestudents.)
10. Oncestudentshavecompletedthereadingandquestions,discusstheanswersasaclass.Teachersshouldeventuallyfocusthediscussiononthethreefunctionsofmoney.Allaredefinedwithinthecomicbookandintheguidedreadingquestions,butcanbeelaboratedupon.Theyare:
• Mediumofexchange• Standard/Measureofvalue• Storeofvalue
11. Informthestudentsthestudentsthattherearemultipletypesofmoney.Thecomicbookpreviewssome
ofthesetypes.Definethefollowingtypesofmoneyandprojectontotheboard:Ø Note:TeachersshouldalsoemphasizethattheUScurrencyisbothfiatmoneyandlegaltender.Many
studentshavethecommonmisconceptionthatmoneyisstillbackedbygold,andisthusrepresentativemoney.
CulminatingActivity• Assignthestudentstogroupsof3-4.Informthemthattheirhighschoolhasdecidedtoissueitsown
moneyandthestudentshavebeenaskedtodesignthecurrencyandcreateatableofthevalueofthecurrencyinrelationtocertaincommonlyusedschoolsupplies.
• Themoneyshould:o Becolorfulwithmultipleillustrationsthatrelatetohighschoollifeandtheirschoolinparticularo Meetthemajorcharacteristicsofeffectivemoneydiscussedduringclasso Haveatleastthreedifferencedenominations(divisibleunits)
LessonExtension• Havethestudentsvisithttp://www.clevelandfed.org/learning_center/online_activities/barter_island/and
playthe“EscapefromtheBarterIslands”interactivesimulationofbartering.Thestudentswillbeaskedtobartermultipletimesontwoisland,andonthefinalislandwillbeabletousecoconuts.Thesimulationlastatmostfiveminutesandthereforeisprobablynotworthhavingtostudentsmovetoaplaceintheschool
1.Commoditymoney-moneywhosevaluecomesfromanaturalresourceorgoodoutofwhichitismade.Examplesofcommoditiesthathavebeenusedasmediumsofexchangeincludegold,silver,copper,salt,peppercorns,largestones,decoratedbelts,shells,alcohol,cigarettes,cannabis,andcandy.2.Representativemoney-moneythatconsistsoftokencoins,otherphysicalsymbolssuchascertificatesthatcanbereliablyexchangedforafixedquantityofacommoditysuchasgold,water,oil,food,etc.3.Currency-coinsandpapermoney4.Fiatmoney-moneyusedasthecirculatingmediumofexchangethatisnotbackedbyordirectlyconvertibleintoanyspecificphysicalcommodity,butratherhasvaluebecausethesocietythatcreatedthesystemthathasassigneditvalue5.Legaltender-moneythatbylawcannotberefusedasamediumofexchange
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withcomputers.Considerhavingthestudentscompletethesimulationoutsideofclassandcompleteashortreflectionofthesimulation,howithighlightedthebenefitofusingmoney,andhowitcomparedtothesimulationcompletedinclass.
• Havestudentsvisithttp://www.frbatlanta.org/about/tours/virtual/money/andlearnaboutthehistoryofmoneyintheUnitedStates.ThetourtakesstudentsfrompopularbartergoodsthroughthemajorerasofUShistoryuptotheFED’scurrentroleinpricestability.
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Handout2:“TheStoryofMoney”1. Whatisbarter?
2. Whatisa“coincidenceofwants”?
3. Whyisbartertimeconsuming?
4. Howdoesdivisionoflaborimprovestandardofliving?
5. Describeusingmoneyasamediumofexchange.
6. Doesmoneyhavetohaveintrinsicvalueinordertobeacceptable?
7. Whydoesmoneyneedtobedivisible?
8. Whatdoesfungiblemean?
9. Describeusingmoneyasastandardofvalue.
10. Whymustmoneyberelativelystableinvalue?
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PracticeTestQuestions1.Whenaconsumerwantstocomparethepriceofoneproductwithanother,moneyisbeingusedprimarilyforwhichfunction?A)storeofvalue. B)unitofaccount.C)checkabledeposit.D)mediumofexchange. 2.Whichofthefollowingisthemostimportantadvantageofthemediumofexchangefunctionofmoney?A)moneytransferspurchasingpowerfromthepresenttothefuture.B)moneymeasurestherelativeworthofproducts.C)moneyreducesthecomplicationsofbarter. D)moneyallowspeopleusecreditcardsinsteadofcurrencyUsethefollowingtoanswerquestion3:
Items1.Agriculturalproducts2.Savingsdeposits3.Gold4.Currency5.CreditCards6.Checkabledeposits
3.Refertotheabovelist.WhichofthechoicesfrombelowfromthelistwouldbeconsideredmoneyintheUSeconomy?
A)1,3,4B)2,5,6C)2,4,6D)Only44.WheredoesthevalueforUnitedStatescurrencycomefrom?A)ItislegaltenderandisbackedbythegoldandsilveroftheFederalgovernment.B)Itisgenerallyacceptableinexchangeforgoodsorservicesandisbackedbythegoldandsilverof
theFederalgovernmentC)Itislegaltenderandisgenerallyacceptableinexchangeforgoodsandservices.D)Itislegaltenderandmaintainstheexactsamevalueovertime.5.WhatisnotareasonforthereplacementofbarterintheUnitedStates’economywiththeuseofmoney?A)moneyiseasilydivisibleB)moneycanneverbedestroyedC)moneyeliminatestheneedforacoincidenceofwantsD)moneyallowsforgreatereconomicspecialization
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PracticeMultipleChoiceQuestions-ANSWERKEY1. B)unitofaccount.2. C)moneyreducesthecomplicationsofbarter.3. C)2,4,64. C)Itislegaltenderandisgenerallyacceptableinexchangeforgoodsandservices.5. B)moneycanneverbedestroyed
You want 5 Pigs
You have 4 bails of hay
You want 2 cows
You have 5 pigs
You want 40 boards of wood
You have 2 cows
You want 4 candles
You have 40 boards of wood
You want 5 Pigs
You have 4 bails of hay
You want 2 cows
You have 5 pigs
You want 40 boards of wood
You have 2 cows
You want 4 candles
You have 40 boards of wood
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You want 4 bails of hay
You have 4 candles
You want 2 chickens
You have 15 ears of corn
You want 15 ears of corn
You have 6 bundles of rope
You want 6 bundles of rope
You have 8 bags of cotton
You want 4 bails of hay
You have 4 candles
You want 2 chickens
You have 15 ears of corn
You want 15 ears of corn
You have 6 bundles of rope
You want 6 bundles of rope
You have 8 bags of cotton
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