Economics Exploration using a Global View

Presenter: Celisity CadotteSubject: HS Economics

Unit: Foundational Economics

Conceptual Lens: Influence

Conceptual Lens: Influence

Influence is “the capacity or power of persons or things to be a compelling force

on or produce effects on the actions, behavior, opinions, etc., of others.”

http://dictionary.reference.com/browse/influence?s=t&ld=1087

Influence synonyms:power, consequence, control, effect, force, guidance, impact, importance, imprint, leverage, pressure, pull, repercussions, sway, weight

http://thesaurus.com/browse/influence?s=t

Critical Content

Intradisciplinary Web for EconomicsConceptual Lens – Influence

Concepts Italicized

Unit Title

Foundational Economics

Economic Systems

Economic Development

Supply / Demand

Scarcity

Economic Growth

Gross Domestic Product (GDP)

Opportunity CostProductivity Efficiency

EquityFreedomstability

UnemploymentInflation Economic Systems

Technological Change

Market ValueExports

ElasticityMarginal CostRecession

Concepts

Macro concept• Economic Systems

Micro concepts• Scarcity• Opportunity Cost• Economic Growth• Unemployment• GDP• Productivity• Supply / Demand

Generalizations

1. A countries economic system is influenced by the government’s decisions on what goods will be produced, how they will be produced, how much will be produced and how goods will be distributed with the goal of economic growth in mind.

2. Resources are scarce for both nations and individuals. Individuals, communities and nations have to make choices which involve an opportunity cost.

3. Fluctuations in unemployment are influenced by changes in Gross Domestic Product or public policy on the labor market. Unemployment and GDP have an inverse relationship. Lower DGP and higher unemployment can have a negative influence on individuals every day lives.

4. Supply and demand influence each other and are interdependent upon each other. When supply is low demand is high. When supply is high demand tends to be lower.

5. “Nations that have a strong economic infrastructure wield greater political power in international relations.” (Erickson, 2007, Ch. 4 Video)

Guiding Essential Questions - FACTUAL

1. What does opportunity cost actually mean?2. What kind of economic system does the U.S.

have?3. Explain the criteria used to calculate the

unemployment rate.

Guiding Essential Questions - CONCEPTUAL

1. Why (and which ones) are resources scarce?2. Why should you, as an individual, be concerned

with the U.S. GDP?

Guiding Essential Questions - PROVOCATIVE

1. Debate the governments role in helping people that are unemployed. Should the government provide unemployment compensation? Should the government let individuals fend for themselves? Should the government provide work programs or training? Justify your answer.

2. If GDP is an indicator of a nation’s standard of living, what decisions can a government make that can influence an increase in GDP? … what decisions can businesses make to increase GDP? … what decisions can individuals make to increase GDP? Of the three, government, businesses, individuals, which one influences GDP most? Which do you

believe should have the greatest role in influencing GDP and ultimately your standard of living? Justify you answer.

Key Skills

• Compare and Contrast• Graphing and Charting• Estimating and Calculating• Research and Information Fluency

Learning Experience 1

WHAT: Calculating Opportunity CostWHY: Establish the concept of opportunity costHOW: Students will work in groups of 2-3 to complete the following tasks. Conclusions will be shared for whole group discussion.1. Estimate the amount of money you can earn if you take a job immediately after you finish high school. Think

about this: Many high school students work part time jobs now. Would your hourly rate of pay remain about the same after you graduate?

2. Now estimate the total amount you would earn in the following 5 years if you had a full time job.3. Then estimate the costs of attending college (include tuition, fees, and books). You may need to do some online

research to find college costs.4. Compute the expenses you will incur to earn a four-year college degree.5. Within your group, discuss the opportunity costs you might pay if you decide not to attend college after high

school. You may have to research what your estimated income would be if you were to earn a college degree. Compare your earnings if you go to work right after high school with just a diploma and your earnings if you earn

a four-year college degree. 6. Discuss the scenario if you were to go to work immediately after high school, what things

are you giving up?7.  On a piece of paper, draw some kind of graph, chart or table showing your conclusions. Discuss your general conclusions with the whole group.

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Learning Experience 2

WHAT: Learning about different economic systemsWHY: Establish a foundation of the U.S. economy and differences within the worldHOW: Students will work in groups of 3-4 to complete the following learning activity.1. Each group will be assigned a different economic system (Tradition-based, Command, Market, or Mixed)

to research using textbooks, library reference, classroom materials or internet resources.

2. Each group will report to the class the characteristics of economic system they have researched.

3. Then whole group discussion on the influences that may have caused a country to change from the tradition-based to a Command market economy or what influences caused a country to change from a Market to Mixed market economy.

(During this discussion the concepts of limited or scarcity of resources, economic growth, economic problems and the six broad social goals each country addresses as well as the influences and implications those goal choices make)

Learning Experience 3

WHAT: Calculating GDPWHY: Establish a the components that influence GDP and a nation’s standard of living.HOW: 1. Whole group discussion on the factors that are used to calculate GDP using the expenditures approach. Students will discover the following concepts:

• Household consumption• Business purchases of capital goods• Government purchases of goods and services• Exports of goods and services• Imports of goods and services

2. Students will work in pairs. Each pair will research using the website http://www.gpo.gov/ to find the last years numbers of the above factors and calculate the U.S. GDP.

3. Return to whole group discussion on how GDP being a measure of economic activity and level of wealth of the society therefore it determines a nation’s standard of living. Class will calculate last year’s standard of living based on their calculated GDP divided by the U.S. population.

Performance Task 1: Economic Systems

Students will compare and contrast the U.S. economic system with another country of their choice. Students will identify similarities, differences, scarcity of resources, and influences and implications of government choices. Students will be accessed using the checklist shown on the next page.

Economic Systems Project Checklist

Component Yes (1) No (0)Researcher's Name

Other country & their economic system identified

Use of some type of graph, chart, table or graphic organizer within projectFind similarities & differences between U.S. and other country of the following characteristics: Economic System Polictical System 6 Broad social goals

Limited or Scarce resources

Current Unemployment Rate Current GDP

Identify relationship between the U.S. and other country (i.e. trade, international affairs, etc. )Sources are cited properly. At least 2 online sources and 1 text source is used.Spelling and grammer used correctly*Double (2) Points* Find and explain an instance where one country influenced the other.TOTAL

Performance Task 2: GDP

1. Students will calculate U.S. GDP for 2011 and 15 year prior (1996) using the website http://www.gpo.gov/. Students will chart out each component to help make observations and comparisons. An example chart is shown here.

2. Students will critically evaluate which component(s) have changed over the 15 year period and hypothesize why (what influences) they may have changed. http://cepfe.nmsu.edu/?q=node/408

PROJECT CONTINUED ON NEXT PAGE

Component 1996 % of GDP 2011 % of GDPSpending

Consumption

Investment

Net Exports

Government Expenditures

TOTAL

Performance Task 2 Continued

3. Students will estimate the economic growth or decrease using the following equation, ((GDP 2011 – GDP 1996)-1) * 100.

4. Students will debate three positives and three negatives of such an increase or decrease then determine how this influences or impacts their daily life now.

http://cepfe.nmsu.edu/?q=node/408

5. Students will research via online resources the 2011 GDP of two additional countries to compare them to the U.S. 2011 GDP. Students will propose what economic conditions influences the differences of the GDP between the countries.

6. Students will put findings and analysis in a Word document. Students will be accessed using the checklist on the following page.

GDP Project Checklist

Component Yes (1) No (0)Researcher's NameUse of Word document with at least 1 table15 year chart/table is complete with accurate informationEvaluation of which component(s) have changed over 15 year periodHypothesis of what influences caused component(s) to changeEconomic growth or decrease is calculated correctly3 positives of economic growth/decrease are listed3 negatives of economic growth/decrease are listedA determination of how the 15 year economic growth/decrease influences personal life nowEvidence of a comparison between the U.S. 2011 GDP and 2 other countries is shownDiscussion on economic conditions influencing the differences of the GDP between each of the countriesTOTAL

Economic Standards from National Council of Economic EducationNCEE Standard 1: SCARCITY; Productive resources are limited. Therefore, people cannot have all the goods and services they want; as a result, they must choose some things and give up others.

NCEE Standard 3: ALLOCATION; Different methods can be used to allocated goods and services. People acting individually or collectively must choose which methods to allocate different kinds of goods and services.

NCEE Standard 6: SPECIALIZATION; When individuals, regions, and nations specialize in what they can produce at the lowest cost and then trade with others, both production and consumption increase.

NCEE Standard 10: INSTITUTIONS; Institutions evolve and are created to help individuals and groups accomplish their goals. Banks, labor unions, markets, corporations, legal systems, and not-for-profit organizations are examples of important institutions. A different kind of institution, clearly defined and enforced property rights, is essential to a market economy.

NCEE Standard 13: INCOME; Income for most people is determined by the market value of the productive resources they sell. What workers earn primarily depends on the market value of what they produce.

NCEE Standards continued

NCEE Standard 15: ECONOMIC GROWTH; Investment in factories, machinery, new technology and in the health, education, and training of people stimulates economic growth and can raise future standards of living.

NCEE Standard 16: ROLE OF GOVERNMENT AND MARKET FAILURE; There is an economic role for government in a market economy whenever the benefits of a government policy outweigh its costs. Governments often provide for national defense, address environmental concerns, define and protect property rights, and attempt to make markets more competitive. Most government policies also have direct or indirect effects on peoples’ incomes.

NCEE Standard 18: ECONOMIC FLUCTUATIONS; Fluctuations in a nation’s overall levels of income, employment, and prices are determined by the interaction of spending and production decisions made by all households, firms, government agencies, and others in the economy. Recessions occur when overall levels of income and employment decline.

NCEE Standard 19: UNEMPLOYMENT AND INFLATION; Unemployment imposes costs on individuals and the overall economy. Inflation, both expected and unexpected, also imposes costs on individuals and the overall economy. Unemployment increases during recessions and decreases during recoveries.

Other Standards

More EconomicsFramework for Teaching EconomicsKey Concept Category 1: Fundamental Economics. Fundamental Economics comprises of 13 key concepts: Decision Making and Cost-Benefit; Division of Labor and Specialization; Economic Institutions; Economic Systems; Incentives; Money; Opportunity Costs; Productive Resources; Productivity; Property Rights; Scarcity; Technology; Trade, Exchange and Interdependence.

Key Concept Category 2: Macroeconomics. Macroeconomics comprises of 11 key concepts: Aggregate Demand; Aggregate Supply; Budget

Deficits and Public Debt; Business Cycle; Economic Growth; Employment and Unemployment; Fiscal Policy; GDP; Inflation; Monetary Policy and the Federal Reserve; Real vs. Nominal.

TechnologyInternational Society for Technology EducationNET-S #3 Research and Information Fluency. Students apply digital tools to gather, evaluate, and use information.

NET-S #4 Critical Thinking, Problem Solving, and Decision Making. Students use critical thinking skills to plan and conduct research, manage projects, solve problems, and make informed decisions using appropriate digital tools and resources.

More StandardsSD Math Content 9-12.M.1.2. Students are able to use suitable units when describing rate of change.

9-12.N.3.1. Students are able to use estimation strategies in problem situations to predict results and to check the reasonableness of results.

9-12.S.1.3. Represent a set of data in a variety of graphical forms and draw conclusions.

SD Reading Content10.R.2.1 Students can formulate associations between texts and experiences.

10.R.2.2 Students can read fluently to comprehend grade-level text.

Resources

Content Standards. (2012). South Dakota Department of Education. Retrieved on July 18, 2012, from http://doe.sd.gov/ContentStandards/index.aspx

Economic Report of the President. U.S. Government Printing Office. Retrieved on August 1, 2012, from http://www.gpo.gov/fdsys/browse/collection.action?collectionCode=ERP&browsePath=2011&isCollapsed=false&leafLevelBrowse=false&isDocumentResults=true&ycord=0

Erickson, H. L. (2007). Chapter 4- Designing Concept Based Units and Lessons [Video]. Available at https://d2l.sdbor.edu/d2l/lms/content/viewer/main_frame.d2l?ou=375678&tId=1926994  High School Economics Topics. Library of Economics and Liberty. Retrieved on July 24, 2012, from http://www.econlib.org/library/Topics/HighSchool/HighSchoolTopics.html  

High School Economics Web-Based Curriculum. Center for Economics and Personal Finance Education. Retrieved on July 27, 2012, from http://cepfe.nmsu.edu/?q=node/408

Resources Continued

Influence. Dictionary.com. Retrieved on July 19, 2012, from http://dictionary.reference.com/browse/Influence?s=t&ld=1087  Influence. Thesaurus.com. Retrieved on July 19, 2012, from http://thesaurus.com/browse/influence?s=t  NETS for Students. International Society for Technology Education. Retrieved on July 19, 2012, from http://www.iste.org/standards/nets-for-students.aspx

Voluntary National Content Standards in Economics Education, 2nd ed. National Council for Economic Education. Retrieved on July 18, 2012, from http://www.councilforeconed.org/