parker - ubd unit plan

Stage 1: Desired Results UBD Template

Topic/Theme: Scarcity and value, as they affect our economic decision-making processes.

Time frame: 3 Weeks / 5 times every 2 weeks / 70 minute blocks

Class/Grade Level: 8th grade

Established Goals: (from the Iowa Core Standards for 6-8 Economics)

Understand the role of scarcity and economic trade-offs and how economic conditions impact peoples’ lives.

Understand the functions of economic institutions.

Understand the function of common financial instruments

Essential Questions:

1) How is value created and/or determined?

2) How do I perceive value?

3) What makes something scarce?

4) Are markets created or discovered?

5) Is supply or demand the stronger force in markets?

6) Why does mutual exclusivity (trade-offs) necessarily exist?

7) What are humans’ greatest needs?

8) What things are wants and what are needs?

9) What is the value (or cost) of money?

10) How is debt used wisely?

Understandings: Students will understand that…

1) Value is perception-based.

2) Value is often a function of scarcity.

3) Scarcity implies a lack of resources.

4) Scarcity can be caused by natural or man-made forces.


5) The “invisible hand” is a useful concept in considering the origin and nature of markets.

6) Demand is influenced by individual valuations.

7) In economic trade-offs, there are always costs and benefits.

8) Economic decisions imply opportunity costs.

9) Essential needs are survival-based.

10) Wants and needs are determined individually.

11) Perceptions of rationality influence determined wants and needs.

12) Money has a cost.

13) Money does not always cost the same.

14) The value of money is market-based.

15) Perceptions of wants and needs influence debt use.

16) Debt can be dangerous.

17) Debt can be advantageous when used responsibly.

18) The cost of money influences the leveraging-effect of debt.

Knowledge: Students will know…

1) Definitions of value.

2) Differing interpretations and perceptions of value.

3) Economic definition of scarcity.

4) How scarcity logically influences perceptions of value.

5) Typical causes of scarcity (ie: natural limitations, governmental restrictions, monopolies, etc.).

6) Adam Smith’s ideas about the “invisible hand”.

7) Differing perspectives/opinions about the origin of markets.

8) Demand is positively correlated to value.

9) Market supply and demand account for all participants in that market.

10) Definitions of trade-off and opportunity cost.

11) The basic human needs for survival.

12) Wants-based markets are less elastic than needs-based.

13) Money has a cost.

14) That interest represents the cost of money.


15) How to calculate interest rates.

16) Interest-based calculation formulas.

17) Debt can cause long-term financial issues for individuals.

18) How credit interest in compounded.

19) How to avoid over-paying for borrowed money.

20) How to compare costs of money to make economically-sound decisions.

21) The difference between short-term and long-term.

22) Key terms: opportunity cost, scarcity, value, short-term, long-term, creditor, debtor, interest, checking account, savings

account, trade-off, cost, benefit, money, economy, market.

Skills: Students will be able to…

.

1) Explain differing perceptions of value.

2) Articulate and defend personal interpretation(s) of value.

3) Identify causes of scarcity.

4) Draw connections between scarcity and value.

5) Solve issues of scarcity.

6) Read closely for comprehension and understanding.

7) Represent their understanding of the “invisible hand”.

8) Defend an opinion as to the origin/nature of markets.

9) Manipulate simple supply and demand models.

10) Explain economics decisions in terms of opportunity cost.

11) Differentiate between wants and needs.

12) How to calculate interest rates and payments based on loan terms.

13) Manipulate interest rate calculators to find unknown information.

14) Common issues which cause debt-based issues for individuals.

15) Calculate interest accumulated from overdue credit card payments.

16) Evaluate personal economic decisions in terms of short and long-term considerations.

17) Define personal long and short-term goals.

18) Use key terms in discussion and in written responses.

Stage 2: Assessment Evidence UBD Template



Class/Grade Level: 8th grade

Performance Tasks/Summative Assessment:

Task / Assessment U (or K or S)

(a) G.R.A.S.P.S.: Barter economy situation – Students will assume various roles and work together to make

trades in an effort to meet their individual wants and needs. Students will organize and prioritize prior to

beginning and will work with others’ perceptions of value to meet their need.

Deliverables:

List of merchants along with product/service offerings.

Conversion chart which indicates value of the various offerings in terms of the individual student’s good

or service offered. (K 1-3)

Log or record of transactions. (K 7, 8)

Written analysis: to address concepts of efficiency, double coincidence of wants, differing perceptions of

value, etc. (K 4, 6, 7, 8, 10)

U: 1-4, 6, 7, 8, 10

K: 1-5, 8-12

S: 1-6, 9, 10, 11

(b) Debt & Loan Calculations Test - Maximize financial stability: Students will be given a variety of options

for financing various purchases. They will find the combination of options which meets their individual needs

and achieves their desired level of financial stability. Different students will have differing perceptions of

financial stability.

U: 12-18

K: 12-21

S: 11-17

(c) Unit Test: To consist of multiple-choice, matching, and short answer questions.

U: 1-10

K: 1-12

S: 1-11


Informal Assessment/Formative Assessment:

Task / Assessment U (or K or S)

(d) Quick Write: Explain in 5 – 7 sentences two different factors which can influence how a person or group perceives

value. Support these with concrete examples either from your life or from our discussion today.

U: 1-4

K: 1-5, 8

S: 1-6, 9

(e) “Invisible Hand” Representation Activity: Students will be supplied with a variety of materials with which to

create a small representation of the “invisible hand”. The purpose of this activity is to add depth to students’

understanding of the concept by pushing them to communicate the concept through visual means. This activity will be

challenging for all students, but will be particularly challenging for students who are less creative or visual. Later

assessments will be offered to fit their personal preferences.

U: 4, 5, 6

K: 3-9

S: 1, 3-9

(f) Group practice manipulating models. Students will all be at the white board. They will construct their own models

and then make the appropriate adjustments to it when I relate various scenarios.

U: 4, 5, 6

K: 3-9

S: 1, 3-9

(g) Short answer/essay prompts pertaining to double coincidence of wants and trade-offs.

Give an example of an economic decision which you might make in the next 4 years. Explain this decision in

terms of its costs and benefits. Be sure to provide enough detail and explanation that all implications are

considered. Do not assume or imply anything. (U 7, 8)

We have discussed, at length, wants and needs. How are wants and needs determined and by who? (U 10, 11)

U: 7, 8, 10, 11

K: 10, 11, 12

S: 7, 10, 11

(h) G.R.A.S.P.S. (round 1). U: 1-4, 6, 7, 8, 10

K: 1-5, 8-12

S: 1-6, 9, 10, 11

(i) Pre-assessment: Small group evaluation of bank loan examples.

U: 12, 13, 17

K: 13-16, 18, 19, 20

S: 12-15


(j) Whole group board-work to practice calculating interest rates and payments.

U: 12, 13, 14, 17

K: 13-16, 18, 19, 20

S: 12-15

k) Think-ink-pair-share: Prompts focused on themes of financial stability, cost of money, debt and leverage, and free

cash. Share with different partners each time.

Do you think debt should be used to fulfill wants or needs? Why? (U 15)

What pros and cons can you think of for using debt to purchase wants v, needs? (U 15)

What dangers do you associate with debt? Do these make debt too risky in your mind? (U 16)

Explain what responsible borrowing means to you? (U 17)

List 5 examples of how you can be responsible with your debt? (U 17)

What is the relationship between leverage and the cost of money? (U 18)

How can you use debt as leverage? (U 18)

U: 15-18

K: 14, 17-21

S: 10, 11, 14-17

(l) Assignment to practice calculating interest rates and payments (to be finished as homework).

U: 12, 13, 14, 17

K: 13-16, 18, 19, 20

S: 12-15

Stage 3: Learning Plan UBD Template



Class/Grade Level: 8th

Grade

Learning Plan:

Learning action UP Connects

1) Individual valuation activity using a given set of objects and goods. To include written

explanations/justifications.

EQ: 1, 2

U: 1

K:

S: 2

A: a, c, d, h

2) In small groups, compare individual valuations.

EQ: 1, 2

U: 1

K: 2

S: 1, 2

A: a, c, d, h

3) Explanation of finding “average” value.

EQ: 1, 2, 4

U: 6

K: 1, 2, 9

S:

A: a, c, d, h

4) Return to groups and come to consensus (“average”) values.

EQ: 1, 2, 4

U: 1, 6

K: 1, 2, 9

S: 1, 2, 4

A: a, c, d, h


2

5) Group sharing and class discussion around individual perception of value and differences w/in groups.

Why did everyone value things differently? (U 1)

What things about you account for these differences? (U 1)

How would you explain your perceptions compared to others in your group? (U 1)

How are your lives different? Your cultures different? Your interest or values different? (U 1)

Consider the things you valued highly, are there any that you would want more of? (U 6)

If you could only have 4 of those things and only one of each of those 4, which ones would you want?

Why? (U 6)

How is demand correlated with value? (U 6)

EQ: 1-4

U: 1, 6

K: 1, 2, 9

S: 1, 2, 4

A: a, c, d, h

6) Lecture/discussion around existence or creation of markets using “average” value exercise. Conclude

with explanation of market value.

EQ: 1, 3, 4

U: 1-6

K: 1-7

S: 1-4

A: a, c, e, f, h 7) “Invisible Hand” article and discussion. (possibly read aloud, or individually)

What things do you consider scarce? (U 3)

How would you define scarcity? (U 3)

How does scarcity influence your perception of a good or service? (U 3)

How is value a function, or related to, scarcity? (U 2)

Explain this connection.

What causes scarcity? (U 4)

Which causes of scarcity are most powerful or most difficult to overcome? (U 4)

Thinking about Adam Smith’s “invisible hand” do you think markets exist and humans just participate

in them? Or do you think humans create markets? (U 5)

Does the “hand” come before people, or people before the “hand”? (U 5)

How can the demand of one person influence an entire market? (U 6)

How can your demands influence a given market? Give an example. (U 6)

EQ: 1, 3, 4, 5

U: 2-6

K: 3, 6-9

S: 3-8

A: a, c, e, f, h

8) Lecture introducing supply and demand model with explanations of simple influences on the model.

EQ: 4, 5

U: 3, 4, 6, 9

K: 6-9

S: 3, 4, 8, 9

A: a, c, f, h


3

9) Case study involving supply of gasoline after middle east turmoil or after tropical whether and the

resultant effect on price.

EQ: 3, 4, 5

U: 3, 4, 9

K: 5, 6, 8, 9

S: 3, 5, 9

A: a, c, h

10) Case study discussion.

What was scarce in this example? (U 3)

What caused this scarcity to occur? (U 4)

What was the resultant influence on the market for oil? (U 9)

How did this influence consumers; in the U.S., China, Europe, Sudan? (U 9)

Would you consider oil an essential need? Why or why not? (U 9)

EQ: 3, 4, 5

U: 3, 4, 9

K: 5, 6, 8, 9

S: 3, 5, 9

A: a, c, h

11) In pairs, students will organize a set of goods and services in terms of their value in relation to each

other (i.e.: what could be exchanged for what or how many of one product would be worth how many of

another product). Rotate pairs 3 times.

EQ: 1, 2, 7, 8

U: 1, 2, 9

K: 2, 4, 11

S: 1, 2, 4, 5, 11

A: a, c, g, h

12) Class discussion around experiences with different partners from previous group activity.

Why did you find difference in your valuations with each partner? (U 1)

Where there any items that you valued similarly? Why? (U 2)

What relationship do you find between scarcity and essential needs? (U 9)

What are the implications of this, for you and for different groups of people? (U 9)

Of the non-essential things, are there any which you valued similarly to someone else? (U 10)

Why do you think this is? What similarities do you have with this person? (U 10)

EQ: 1, 2, 7, 8

U: 1, 2, 9, 10,

11

K: 2, 4, 11, 12

S: 1, 2, 4, 5, 11

A: a, c, g, h

13) Practice reading closely with adapted Selgin article over barter economy.

EQ: 3, 4, 6, 7, 8

U: 6-11

K: 4-7, 10-12

S: 3-6, 9, 10, 11

A: a, c, g, h


4

14) Pair-share over their notes from reading closely.

EQ: 3, 4, 6, 7, 8

U: 6-11

K: 4-7, 10-12

S: 3-6, 9, 10, 11

A: a, c, g, h

15) Lecture over concepts from Selgin article (i.e.: double coincidence of wants and barter economy).

EQ: 3, 4, 6

U: 6-11

K: 4-7, 10-12

S: 3-6, 9, 10, 11

A: a, c, g, h

16) Personal prioritization activity and discussion (wants vs. needs).

EQ: 2, 3, 7, 8

U: 7-11

K: 4, 5, 10, 11, 12

S: 2, 10, 11

A: a, c, h

17) Individual organization for activity.

EQ: 2, 3, 7, 8

U: 7-11

K: 4, 5, 10, 11, 12

S: 2, 10, 11

A: a, c, h

18) Whole group discussion around bank loans and interest rates.

What is a dollar worth to you? (U 12)

What if you didn’t have any dollars? What if you had millions of dollars? (U 12)

Can money have a cost? Is it ever fair to exchange a dollar for a different amount? (U 12)

How would you define the cost of money? What word would represent this? (U 12)

Why would interest rates ever be different or fluctuate? (U 13)

Who decides interest rate and how? (U 13)

What influences interest rates? (U 13)

Does any, one person, have complete control over an interest rate? (U 14)

How do you influence interest rates? How do your parents influence them? (U 14)

EQ: 9

U: 12, 13, 14

K: 14, 15

S:

A: b, j, k

19) Lecture: loan calculations (i.e.: payments, payback period, down payment, interest rate).

EQ: 9

U: 12-15

K: 13-16

S: 12, 13, 15

A: b, j, k


5

20) Whole group board-work to practice calculating interest rates and payments.

EQ: 9

U: 12, 13, 14

K: 13-16

S: 12, 13, 15

A: b, k

21) Whole group brainstorming session about the kinds of purchases for which one might seek a loan and

why or why not.

EQ: 7-10

U: 15

K: 14, 17, 20, 21

S:

A: b, k

22) Think-ink-pair-share: Prompts focused on themes of financial stability, cost of money, debt and

leverage, and free cash. Share with different partners each time.

Do you think debt should be used to fulfill wants or needs? Why? (U 15)

What pros and cons can you think of for using debt to purchase wants v, needs? (U 15)

What dangers do you associate with debt? Do these make debt too risky in your mind? (U 16)

Explain what responsible borrowing means to you? (U 17)

List 5 examples of how you can be responsible with your debt? (U 17)

What is the relationship between leverage and the cost of money? (U 18)

How can you use debt as leverage? (U 18)

EQ: 7-10

U: 15-18

K: 14, 17-21

S: 10, 11, 14-17

A: b

23) Whole group discussion/lecture over TIPS.

EQ: 7-10

U: 15-18

K: 14, 17-21

S: 10, 11, 14-17

A: b

24) Assignment to practice calculating interest rates and payments (to be finished as homework).

EQ: 9

U: 12, 13, 14

K: 13-16

S: 12, 13, 15

A: b

Unit Pacing Calendar

Monday Tuesday Wednesday Thursday Friday

1 2 3 4 5

Lesson 1 – Day 1

Quick Write

Lesson 1 – Day 2

Invisible Hand Activity

Lesson 1 – Day 3

Practice Manipulating

Models

6 7 8 9 10

Lesson 2 – Day 1

Homework: Short

Answer/Essay Prompts

Lesson 2 – Day 2

G.R.A.S.P.S. Set-Up

11 12 13 14 15

Lesson 1 – Day 3

G.R.A.S.P.S Activity

Lesson 3 – Day 1

Pre-Assessment: Loans

Board Work: Calculations

Practice

Lesson 3 – Day 2

Think-Ink-Pair-Share: Debt

Assignment: Calculations

Practice

16 17 18 19 20

After-School

Review Session (optional)

Before-School Review

Session (optional)

Unit Exam

Debt & Loan Calculations

Test

* See lesson plans for detailed activities for each day.

UBD Lesson Plan — Gabe Parker



Class/Grade Level: 8th

Grade

Lesson #1 Lesson Summary:

In this lesson we will discuss the concept of value as it pertains to scarcity. We will explore various ideas about how value is created

and perceived by different groups of people and individuals. The lesson will conclude with conversations about the origin of markets,

whether they are created or discovered by humans, and beginning connections of value/scarcity to supply and demand. These

understandings will be arrived at via many small and large group discussions, an edited reading about the “invisible hand”, and basic

manipulations of the supply and demand model.

Lesson Objective(s):

Given a list of various goods and services, students will reason why things in their lives hold particular value during a class

discussion.

After an individual exploration activity, a group activity and extensive group discussion, students will explain the connection between scarcity and value during class discussion.

After reading an article about the “invisible hand” and discussing it, students will create a visual representation of the “invisible hand” which demonstrates understanding of the pervasive and often-unnoticed movement of the “invisible hand”.

After reading the “invisible hand” article and discussion, students will articulate and defend their opinion on the origin of

markets through class discussion.

After lecture, demonstration, and discussion around supply and demand models, students will construct and manipulate supply and demand models on the white board when given basic influences on the market.

UBD Lesson Plans UBD Template

2

Materials/Resources required

Lecture notes: origin of markets, supply/demand.

Copies: sheet of objects for evaluation, “Invisible Hand” article, supply/demand case study.

Quick write prompt.

Computer w/ projection.

White board and markers.

Paper, colored pencils, crayons, markers, yarn, scissors, glue, etc.

Desired Results Established Goals: (from the Iowa Core State Standards for 6-8 Economics)

Understand the role of scarcity and economic trade-offs and how economic conditions impact people's lives. .

Understand how the laws of supply and demand affect price and consumers' responses to prices.


1. How is value created and/or determined?

2. How do I perceive value?

3. What makes something scarce?

4. Are markets created or discovered?

5. Is supply or demand the stronger force in markets?


1. Value is perception-based.

2. Value is often a function of scarcity.

3. Scarcity implies a lack of resources.

4. Scarcity can be caused by natural or man-made forces.

5. The “invisible hand” is a useful concept in considering the origin and nature of markets.

6. Demand is influenced by individual valuations.


3

Knowledge: Students will know… 1. Definitions of value.

2. Differing interpretations and perceptions of value.

3. Economic definition of scarcity.

4. How scarcity logically influences perceptions of value.

5. Typical causes of scarcity (ie: natural limitations, governmental restrictions, monopolies, etc.).

6. Adam Smith’s ideas about the “invisible hand”.

7. Differing perspectives/opinions about the origin of markets.

8. Demand is positively correlated to value.

9. Market supply and demand account for all participants in that market.


1. Explain differing perceptions of value.

2. Articulate and defend personal interpretation(s) of value.

3. Identify causes of scarcity.

4. Draw connections between scarcity and value.

5. Solve issues of scarcity.

6. Read closely for comprehension and understanding.

7. Represent their understanding of the “invisible hand”.

8. Defend an opinion as to the origin/nature of markets.

9. Manipulate simple supply and demand models.


4

Assessment Evidence

Performance Tasks/Formal/Summative Assessment:

Task / Assessment UP Connects

Other Evidence/Informal/Formative Assessment:


(d) Quick Write: Explain in 5 – 7 sentences two different factors which can influence how a person or group perceives value.

Support these with concrete examples either from your life or from our discussion today.

U: 1-4

K: 1-5, 8

S: 1-6, 9

(e) “Invisible Hand” Representation Activity: Students will be supplied with a variety of materials with which to create a small

representation of the “invisible hand”. The purpose of this activity is to add depth to students’ understanding of the concept by

pushing them to communicate the concept through visual means. This activity will be challenging for all students, but will be

particularly challenging for students who are less creative or visual. Later assessments will be offered to fit their personal

preferences.

U: 4, 5, 6

K: 3-9

S: 1, 3-9

(f) Group practice manipulating models. Students will all be at the white board. They will construct their own models and then

make the appropriate adjustments to it when I relate various scenarios.

U: 4, 5, 6

K: 3-9

S: 1, 3-9


5

Detailed Steps/Procedures

Learning action Time (mins)

Day 1 INTRO:

Over the next 2 weeks or so, we are going to do some personal exploration. We will be thinking a lot about what is valuable to

us and why. Furthermore, we will look into the ways that these values influence the world around us. I am especially excited

for this unit because we will get to work together a lot and this will help us to better understand things. In fact, if we were to try

to do these things on our own, we probably would not reach a very good understanding. Lucky for you all, you won’t have to

listen to me talk too much!

1

1) Individual valuation activity using a given set of objects and goods. To include written explanations/justifications. 10

2) In small groups, compare individual valuations. 10 - 15

3) Explanation of finding “average” value. 5

4) Return to groups and come to consensus (“average”) values. 10 - 15

5) Group sharing and class discussion around individual perception of value and differences w/in groups.

Why did everyone value things differently? (U 1)

What things about you account for these differences? (U 1)

How would you explain your perceptions compared to others in your group? (U 1)

How are your lives different? Your cultures different? Your interest or values different? (U 1)

Consider the things you valued highly, are there any that you would want more of? (U 6)

If you could only have 4 of those things and only one of each of those 4, which ones would you want? Why? (U 6)

How is demand correlated with value? (U 6)

15 - 20

2) Quick Write: Explain in 5 – 7 sentences two different factors which can influence how a person or group perceives value.

Support these with concrete examples either from your life or from our discussion today. 10

TOTAL: 61 - 76


6

Day 2 INTRO:

Recall that yesterday we learned that even when we consider the same things, every single one of us has a different idea as to

the value of those things. We learned that those different valuations were dependent upon a number of factors: scarcity (who

can define scarcity for me?), our experiences, our perceptions, our values… all kinds of things. Let’s pick up where we left off

talking about finding an “average” value for these things which considers everyone’s valuations.

1

1) Lecture/discussion around existence or creation of markets using “average” value exercise. Conclude with explanation of

market value. 10 - 15

3) “Invisible Hand” article and discussion. (possibly read aloud, or individually)

What things do you consider scarce? (U 3)

How would you define scarcity? (U 3)

How does scarcity influence your perception of a good or service? (U 3)

How is value a function, or related to, scarcity? (U 2)

Explain this connection.

What causes scarcity? (U 4)

Which causes of scarcity are most powerful or most difficult to overcome? (U 4)

Thinking about Adam Smith’s “invisible hand” do you think markets exist and humans just participate in them? Or do you

think humans create markets? (U 5)

Does the “hand” come before people, or people before the “hand”? (U 5)

How can the demand of one person influence an entire market? (U 6)

How can your demands influence a given market? Give an example. (U 6)

15 - 20

4) Individual activity: Visual representations of the invisible hand. Short presentations if time. 35 - 40

TOAL: 61 – 81


7

Day 3 INTRO:

Today students we will round out our conversation about scarcity, value and markets, by examining how these things actually

affect market conditions. As we know, it is debatable whether we create markets or if markets exist outside of us, but what we

do know it that there are relationships between markets and people. Today we are going to explore this relationship in terms of

supply and demand.

1

1) Lecture introducing supply and demand model with explanations of simple influences on the model. 20 – 25

2) Group practice manipulating models. Students will all be at the white board. They will construct their own models and then

make the appropriate adjustments to it when I relate various scenarios. 15

3) Case study involving supply of gasoline after middle east turmoil or after tropical whether and the resultant effect on price. 15 - 20

4) Case study discussion.

What was scarce in this example? (U 3)

What caused this scarcity to occur? (U 4)

What was the resultant influence on the market for oil? (U 9)

How did this influence consumers; in the U.S., China, Europe, Sudan? (U 9)

Would you consider oil an essential need? Why or why not? (U 9)

15 - 20

TOTAL: 66 - 80


8


This lesson will build off of the understandings about scarcity, value, demand, and markets from the previous lesson. In this lesson

students will work to build a formal understanding of trade-offs and their associated cost and benefits and they will experience market

simulations which require an understanding of the double coincidence of wants and the associated implications in a barter economy.

This lesson will include with challenging readings that have been adapted and will be supported by small group conversations, large

group discussion and lecture.


1) Using the previous lesson’s information about value and scarcity, students will value goods and services relative to each other

by way of an in class activity and worksheet.

2) After closely reading an article by Selgin, sharing with partners and lecture, students will explain the barter system and

understand the connection between barter, double coincidence of wants, and trade-offs via a take-home essay prompt.

3) After reading Selgin, lecture, discussion, and a practice activity, students will communicate effectively and create double

coincidences of wants in order to meet their needs, during an in-class simulation.

4) “ “, students will describe transactions in terms of their costs and

benefits via a post-simulation reflection.


Lecture notes: Selgin article.

Copies: goods/services list, Selgin article, essay prompts, wants v. needs list, assignment sheet for G.R.A.S.P.S.



Environmental print about how to read closely.

Desired Results

Established Goals: (from the Iowa Core State Standards for 6-8 Economics)

Understand the cost and benefits of economic trade-offs and how scarcity of resources affects costs and benefits.

Understand economic trade-offs at different levels (personal, business, local government).


9


4. Are markets created or discovered?

5. Is supply or demand the stronger force in markets?

6. Why does mutual exclusivity (trade-offs) necessarily exist?

7. What are humans’ greatest needs?

8. What things are wants and what are needs?


4. Scarcity can be caused by natural or man-made forces.

5. The “invisible hand” is a useful concept in considering the origin and nature of markets.

6. Demand is influenced by individual valuations.

7. In economic trade-offs, there are always costs and benefits.

8. Economic decisions imply opportunity costs.

9. Essential needs are survival-based. (to be assessed during the final unit test)

10. Wants and needs are determined individually.

11. Perceptions of rationality influence determined wants and needs.


3. Economic definition of scarcity.

4. How scarcity logically influences perceptions of value.

5. Typical causes of scarcity (ie: natural limitations, governmental restrictions, monopolies, etc.).

6. Adam Smith’s ideas about the “invisible hand”.

7. Differing perspectives/opinions about the origin of markets.

8. Demand is positively correlated to value.

9. Market supply and demand account for all participants in that market.

10. Definitions of trade-off and opportunity cost.

11. The basic human needs for survival.

12. Wants-based markets are less elastic than needs-based.


10


3. Identify causes of scarcity.

4. Draw connections between scarcity and value.

5. Solve issues of scarcity.

6. Read closely for comprehension and understanding.

7. Represent their understanding of the “invisible hand”.

8. Defend an opinion as to the origin/nature of markets.

9. Manipulate simple supply and demand models.

10. Explain economics decisions in terms of opportunity cost.

11. Differentiate between wants and needs.

Assessment Evidence



(a) G.R.A.S.P.S.: Barter economy situation – Students will assume various roles and work together to make trades in an

effort to meet their individual wants and needs. Students will organize and prioritize prior to beginning and will work with

others’ perceptions of value to meet their need.

Deliverables:

List of merchants along with product/service offerings.

Conversion chart which indicates value of the various offerings in terms of the individual student’s good or service

offered. (K 1-3)

Log or record of transactions. (K 7, 8)

Written analysis: to address concepts of efficiency, double coincidence of wants, differing perceptions of value, etc.

(K 4, 6, 7, 8, 10)

U: 1-4, 6, 7, 8, 10

K: 1-5, 8-12

S: 1-6, 9, 10, 11


11



(g) Short answer/essay prompts pertaining to double coincidence of wants and trade-offs.

Give an example of an economic decision which you might make in the next 4 years. Explain this decision in terms of

its costs and benefits. Be sure to provide enough detail and explanation that all implications are considered. Do not

assume or imply anything. (U 7, 8)


U: 7, 8, 10, 11

K: 10, 11, 12

S: 7, 10, 11

(h) G.R.A.S.P.S. (round 1): Students will do the barter economy activity, but this first round will be a sort of practice

round to work out any kinks and to give them a better idea about what strategies will work well and which ones will not.

U: 1-4, 6, 7, 8, 10

K: 1-5, 8-12

S: 1-6, 9, 10, 11



Day 1 INTRO:

Students, by now we realize that markets are influenced by lots of different players. Even in our small class, we have seen how

different our opinions can be and how differently we value particular goods and services. Imagine this diversity on a larger

scale: our town, Iowa, the Midwest, the U.S., the world. Hopefully at this point you are wondering, “How does it work?” In our

next lesson, we’re going to get a small glimpse of what things must happen for markets to function. We’re going to start from

the ground up; by understanding where we have come from, we can better understand where we are going.

1

1) In pairs, students will organize a set of goods and services in terms of their value in relation to each other (ie: what could be

exchanged for what or how many of one product would be worth how many of another product). Rotate pairs 3 times. 15 - 20


12

2) Class discussion around experiences with different partners from previous group activity.

Why did you find difference in your valuations with each partner? (U 1)

Where there any items that you valued similarly? Why? (U 2)

What relationship do you find between scarcity and essential needs? (U 9)

What are the implications of this, for you and for different groups of people? (U 9)

Of the non-essential things, are there any which you valued similarly to someone else? (U 10)

Why do you think this is? What similarities do you have with this person? (U 10)

10

3) Practice reading closely with adapted Selgin article over barter economy. 15

4) Pair-share over their notes from reading closely. 5 – 10

5) Lecture over concepts from Selgin article (ie: double coincidence of wants and barter economy). 15 – 20

6) Homework: Short answer/essay prompts pertaining to double coincidence of wants and trade-offs.

Give an example of an economic decision which you might make in the next 4 years. Explain this decision in terms of its

costs and benefits. Be sure to provide enough detail and explanation that all implications are considered. Do not assume or

imply anything. (U 7, 8)


TOTAL: 61 - 76

Day 2 INTRO:

So, yesterday we discovered an enormous problem! This double coincidence of wants business is a serious issue, at least

according to Selgin. You all did a great job reading closely yesterday and you really engaged the concepts and issues he was

highlighting. Today, we are going to put on the shoes of someone who lives in a barter economy and see if we can’t create

some double coincidences of wants.

1

1) Personal prioritization activity and discussion (wants vs. needs). 15

2) Explanation and overview of G.R.A.S.P.S. activity. 10 - 15


13

3) Individual organization for activity. 30

4) Q&A over activity. 5 - 10

TOTAL: 61 - 71

Day 3 INTRO:

Today is the day, the day we put our knowledge about markets to the test in a real-life simulation. You all did a great job of

organizing, planning and preparing yesterday. I hope you are successful in your endeavors today!

1

1) G.R.A.S.P.S. activity round 1. 15

2) G.R.A.S.P.S. activity round 2. 15

3) Individual work time to organize deliverables from activity. 30 - 35

4) Hand in deliverables for G.R.A.S.P.S. activity: list of merchants and goods, prioritization scheme of needs, conversion

charts demonstrating perceived value, transaction log, and reflection on forces and trends in the market. 5

TOTAL: 66 - 71


14


This lesson serves to transition students from our learning about barter economies into learning about money-based economies. This

lesson will be focused on calculation skills and also on establishing personal preferences and opinions about how and when to use

debt. In this lesson, these concepts will be discussed primarily in a personal finance context, but many of the concepts are

transportable and will be helpful for future conversations about business and/or government finance.


After lecture and given numerous examples and scenarios, student will perform calculations using interest formulas to find unknown information during an in-class practice exercise and on a homework assignment.

After much large and small group discussion, students will articulate their personal preferences pertaining to debt-use through

a think-ink-pair-share.

By the end of the lesson, full of discussion and brainstorming session, student will differentiate between wants and needs as evidenced during discussion.


Lecture notes: loan calculations.

Copies: loans pre-assessment, interest rate assignment.

TIPS prompts.



Desired Results

Established Goals: (from the Iowa Core State Standards for 6-8 Economics)

Understand the services that are available at banks and credit unions.

Understand the process of interests and payments for goods.

Understand the role banks play among savers, borrowers, and investors.


15

Essential Questions: 9. What is the value (or cost) of money?

10. How is debt used wisely?


12. Money has a cost.

13. Money does not always cost the same.

14. The value of money is market-based.

15. Perceptions of wants and needs influence debt use.

16. Debt can be dangerous.

17. Debt can be advantageous when used responsibly.

18. The cost of money influences the leveraging-effect of debt.


13. Money has a cost.

14. That interest represents the cost of money.

15. How to calculate interest rates.

16. Interest-based calculation formulas.

17. Debt can cause long-term financial issues for individuals.

18. How credit interest in compounded.

19. How to avoid over-paying for borrowed money.

20. How to compare costs of money to make economically-sound decisions.

21. The difference between short-term and long-term.


12. How to calculate interest rates and payments based on loan terms.

13. Manipulate interest rate calculators to find unknown information.

14. Common issues which cause debt-based issues for individuals.

15. Calculate interest accumulated from overdue credit card payments.

16. Evaluate personal economic decisions in terms of short and long-term considerations.

17. Define personal long and short-term goals


16

Assessment Evidence



(b) Loan Pmt. Calculations - Maximize financial stability: Students will be given a variety of options for financing

various purchases. They will find the combination of options which meets their individual needs and achieves their

desired level of financial stability. Different students will have differing perceptions of financial stability.

U: 12-18

K: 12-21

S: 11-17



(i) Pre-assessment: Small group evaluation of bank loan examples.

U: 12, 13, 17

K: 13-16, 18, 19, 20

S: 12-15

(j) Whole group board-work to practice calculating interest rates and payments.

U: 12, 13, 14, 17

K: 13-16, 18, 19, 20

S: 12-15

k) Think-ink-pair-share: Prompts focused on themes of financial stability, cost of money, debt and leverage, and free

cash. Share with different partners each time.

Do you think debt should be used to fulfill wants or needs? Why? (K 15)

What pros and cons can you think of for using debt to purchase wants v, needs? (K 15)

What dangers do you associate with debt? Do these make debt too risky in your mind? (K 16)

Explain what responsible borrowing means to you? (K 17)

List 5 examples of how you can be responsible with your debt? (K 17)

What is the relationship between leverage and the cost of money? (K 18)

How can you use debt as leverage? (K 18)

U: 15-18

K: 14, 17-21

S: 10, 11, 14-17

(l) Assignment to practice calculating interest rates and payments (to be finished as homework).

U: 12, 13, 14, 17

K: 13-16, 18, 19, 20

S: 12-15


17



Day 1 INTRO:

Today class we are going to shift gears just a bit. By now we understand the difficulties of maneuvering in a barter economy. A

different system which we are going to begin to explore is a money economy. We live in a money economy. In this system,

instead of trading goods, we use currency, or money, to buy and sell. Sometimes in business or personally, we have purchases

to make for which we do not have the money, so we may need to take out a loan, or borrow money. That’s where we are going

to pick up today; we’re going to begin learning about loans, interest and borrowing money.

1

1) Pre-assessment: Individual evaluation of bank loan examples. 10

2) Whole group discussion on bank loans and interest rates.

What is a dollar worth to you? (U 12)

What if you didn’t have any dollars? What if you had millions of dollars? (U 12)

Can money have a cost? Is it ever fair to exchange a dollar for a different amount? (U 12)

How would you define the cost of money? What word would represent this? (U 12)

Why would interest rates ever be different or fluctuate? (U 13)

Who decides interest rate and how? (U 13)

What influences interest rates? (U 13)

Does any, one person, have complete control over an interest rate? (U 14)

How do you influence interest rates? How do your parents influence them? (U 14)

15 – 20

3) Lecture: loan calculations (i.e.: payments, payback period, down payment, interest rate). 20

4) Whole group board-work to practice calculating interest rates and payments. 20 – 25

TOTAL: 66 - 76


18

Day 2 INTRO:

Yesterday we really got into the nitty-gritty of loans. We learned a few formulas and practiced applying them. It is important

that we are able to manipulate these tools and to understand what they tell us. However, it is arguably more important that we

understand when loans are appropriate before we worry about how to perform calculations of them. So today, we’re going to

take step back and think about when and why we might seek a loan. As we do this it is imperative, or important, that we think

personally about our goals, or abilities and our comfort level with taking on risk. Let’s start today with a whole group

discussion.

1

1) Whole group brainstorming session about the kinds of purchases for which one might seek a loan and why or why not. 5 – 10

2) Think-ink-pair-share: Prompts focused on themes of financial stability, cost of money, debt and leverage, and free cash.

Share with different partners each time.

Do you think debt should be used to fulfill wants or needs? Why? (K 15)

What pros and cons can you think of for using debt to purchase wants v, needs? (K 15)

What dangers do you associate with debt? Do these make debt too risky in your mind? (K 16)

Explain what responsible borrowing means to you? (K 17)

List 5 examples of how you can be responsible with your debt? (K 17)

What is the relationship between leverage and the cost of money? (K 18)

How can you use debt as leverage? (K 18)

20 – 25

3) Whole group discussion/lecture over TIPS. 30

4) Assignment to practice calculating interest rates and payments (to be finished as homework). 5 – 10

TOTAL: 61 - 76

Can You Thrive in a Barter Economy?

For this activity you will be assigned a good or service to offer in a small-scale market governed

by a barter system. In your community, there is no such thing as dollar bills, coins, gold, or any

other sort of common currency. The only way to buy and sell goods and services is by trading

them. That is the premise of this simulation, to work to create double coincidences of wants in

order to meet your individual needs.

You may market your good or service however you wish. For example, if you raise chickens you

might choose to trade some of your eggs and you might choose to use the rest of your eggs to

make pie crusts which you also trade. Whatever you choose to do, remember that the only good

you own without trading with someone else is that one thing which is assigned to you from the

beginning.

We will be doing two in-class simulations in order to help us better understand the ideas we’ve

been discussing in this unit. These simulations will deal directly with trade-offs, value, scarcity,

and market creation/existence. The first simulation will be a sort of practice run to work out any

kinks and to clarify any questions. The second round will be more official and will be the

simulation which you will be assessed over.

The deliverables for this assessment are described below:

1. List of Merchants:

In this document, you are asked to list the other merchants in the market and note what goods or

services they offer. You are encouraged to include any other information which would help you

to do business with them in the future.

2. Conversion Chart:

In this document, you are asked to create a chart which lists the values of other goods and

services in terms of what you offer. You are encouraged to create additional charts which equate

goods and services in terms of other merchants offerings, to help you to be most efficient.

3. Transaction Record:

In this document, you are asked to record each transaction you make. At the end of the

simulation, you will use this record to list your inventory of all tangible goods you have procured

by the end of trading.

4. Analysis:

In this document, you are asked to reflect upon the simulation and your experiences. Talk about

what things went well and what things were frustrating. Were there needs that were easily met?

Were others more difficult to meet? A well written analysis will likely be 2-4 pages. In your

analysis be sure to create connections from your experiences back to concepts from the unit. For

example: efficiency, double coincidence of wants, perceptions of value, scarcity,

existence/creation of markets.

Deliverable/

Observable

Command

(100 pts.)

Proficiency

(92 pts.)

Developing

(75 pts.)

Basic

(60 pts.)

Participation

(25%)

In addition to proficiency

expectations, student

finds creative and

respectful ways to barter

with classmates and/or

works collaboratively

with others to achieve

greater efficiency.

Student participates

fully in simulation

and follows

instructions while

bartering respectfully

with others.

Student follows

instructions, but with

hesitant or partial

participation.

Respect for others

may be lacking.

Student partially

follows instructions,

does not participate

fully, and/or is

disrespectful to

others.

List of

Merchants

(15%)

Student follows directions

completely. In addition,

student includes

information about other

merchants which clearly

informs their trading

during the simulation.

Student follows

directions completely

and creates a

document which is

useful for trading.

Student partially

follows instructions.

Document lacks

organization, clarity,

and/or usefulness for

trading.

Student creates a

document which is

only partial or

otherwise

incomplete. This

document is

disorganized and/or

is not useful for

trading.

Conversion

Chart

(20%)

Student follows directions

completely. In addition,

student includes

valuations of

goods/services in terms of

others’ offerings in a way

which clearly increases

their efficiency in trading.

Student follows

directions completely

and creates a

conversion chart

which clearly

informs their trading

decisions.

Student partially

follows instructions

and creates a chart

which informs

trading decisions

sometimes.

Document may lack

clarity or

organization.

Student creates a

document which is

only partial or

otherwise

incomplete. This

document is

disorganized and/or

is not useful for

trading.

Transaction

Record

(15%)

Student accurately records

transactions as they go.

Record translates into a

clearly organized

inventory list.

Student accurately

records transactions

as they go. Record is

helpful for creating

an inventory list.

Student creates a

record which is

mostly accurate.

Record is not helpful

for creating an

inventory list.

Student creates a

record which is

partially accurate and

is not useful for

creating an inventory

list.

Written

Analysis

(25%)

Student writes an analysis

of appropriate length

which clearly ties

experiences to concepts

from the unit. In addition,

student reflects upon

ways which they could

utilize what they learned

in future simulations

and/or in real life.

Student writes an

analysis of

appropriate length

which clearly ties

experiences to

concepts from the

unit. Reflection is

thoughtful and

purposeful.

Student writes an

analysis of

appropriate length

which is superficially

tied to some concepts

from the unit.

Reflection may lack

thoughtfulness and

purpose.

Student writes an

analysis which may

be of inappropriate

length which is

superficially tied to

some concepts from

the unit. Reflection

lacks thoughtfulness

and purpose.

parker - ubd unit plan

Documents

value of money

cost of money

perceptions of value

definitions of value

costs of money

function of scarcity

borrowed money

wantsbased markets