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Access the Tools for Teaching the AR Economics with Personal Finance Course

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Access the Tools for Teaching the AR Economics with Personal Finance Course

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Tools for Teaching the High School Economics with Personal Finance Course

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This free course includes lessons and resources and is aligned to the Arkansas Social Studies Frameworks.

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High School Economics, 3rd Edition Resources

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High School Economics, 3rd Edition Resources

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Scroll down for slides and interactives that go with the lessons in this book.

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About the Book

To help teachers better teach economics, the Council for Economic Education revised and updated High School Economics. This new and revised 3rd Edition includes 28 engaging lessons which employ an active-learning approach that brings economic concepts to life for students. This resource has been:

Updated to include more contemporary references that highlight new challenges in a world that has changed significantly since the 2nd edition 11 years ago

Redesigned to meet the needs of today's students and applies economic thinking to current issues

Integrates more macroeconomics and international economics lessons including materials on topics such as GDP, unemployment, inflation, and trade

Field-tested and aligned with Voluntary National Content Standards in Economics and Common Core State Standards (ELA and Math)

Select lessons feature interactive online activities that connect to and extend the lessons both in class and as self-guided homework activities

Order Today

Table of Contents

1. Production Possibilities and Opportunity Cost (Slides, Print Activities)

2. Allocating Scarce Resources (Slides, Print Activities)

3. What Happens When Prices are not in Equilibrium? (Slides, Print Activities)

4. The Market Never Stands Still (Slides, Print Activities)

5. How Markets Interact (Slides, Print Activities)

6. Game Theory: One Step Ahead of the Competition (Slides, Print Activities)

7. Not-So-Private Goods and Services (Slides, Print Activities)

8. Third-Party Costs and Benefits (Slides, Print Activities)

9. Public Choice Economics (Slides, Print Activities)

10. The Circular Flows of Econoland (Slides, Print Activities)

11. Inflation (Slides, Print Activities)

12. Economic Growth (Slides, Print Activities)

13. Explaining Short-Run Economic Fluctuations (Slides, Print Activities)

14. Fiscal Policy: The Multiplier Effect (Slides, Print Activities)

15. The Case of the Gigantic $100,000 Bill (Interactive Visual, Print Activities)

16. The Fed's Toolbox (Slides, Print Activities)

17. Trade: Why Do People Trade? (Slides, Print Activities)

18. Where to Build a Factory (Slides, Print Activities)

19. Broad Social Goals of an Economy (Print Activities)

Interactive Activities

Ten of the lessons in High School Economics include web-based interactive supplements. These supplements range from simple online worksheets designed to help teachers make the best possible use of instructional time to rich, collaborative activities that have students working together and interacting with each other. The collaborative activities are designed to be easy to use and are built around CEE's commitment to active learning. They don't require managing multiple sets of student usernames and passwords. Teachers are able to create a special web address for each group that they can distribute to their students. At the end of the activity, teachers can download all of the data generated by their students and use those data to illustrate the concepts covered in the lesson.

Browser Support: Interactive activities work best in modern versions of Chrome, Firefox, and Safari. Internet Explorer is not fully supported in all activities. Interactive Activity Feedback and Support.

Sample Lesson: Wage Rates

In this lesson, students play the role of either buyers or sellers of labor to examine the interconnectedness of individuals and companies in labor markets. Students learn that the demand and supply for labor determine market wage rates and that wages depend, in part, on individual productivity.

Demonstration Videos

Lesson 8: Productivity

Lesson 13: Who Decides Wage Rates?

Lesson 18: Unemployment Survey

Authors

Contributors

Project Director

William Bosshardt has been director of the Center for Economic Education at Florida Atlantic University since 1995. He was on the writing team of a number of publications by the Council on Economic Education including Focus: Globalization and Focus: Civics and Government. He was the project director for the volumes Focus: Middle School World History as well as for the National Standards in Financial Literacy.

Bill is an active researcher in the area of economic education, having published in leading journals such as the Review of Economics and Statistics, Economic Inquiry and the Journal of Economic Education. He received the Henry H. Villard Research Award in 2004, presented by the National Association of Economic Educators for outstanding published research in economic education. Bill received his Ph.D. from Purdue University in 1991.

The Council for Economic Education gratefully acknowledges the funding of this publication by 3Mgives.

Bibliographic Information

ISBN

978-1-56183-753-3

Number of Pages

420 pages

Number of Interactive Activities

10 interactive activities

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The Council for Economic Education presents High School Economics, a 28-lesson resource of engaging lessons employ an active-learning approach that brings economic concepts to life for students.

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Annin Flagmakers has been making the US Flag since 1847 and is the oldest and largest flag manufacturer in the United States. We have the highest-quality products, broadest product line, largest inventory, best customer service, highest fill rates and the greatest production capacity in the industry.

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Create online classrooms

In just a few clicks, set up a classroom for each class you teach. Give your classroom a name and select a date range, and you're on your way to creating a syllabus of quality resources for your students.

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Award-winning free resources for K-12 and college classrooms | Econ Lowdown

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Econ Lowdown is a FREE platform with award-winning economics and personal finance resources for K-12 and college classrooms.

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H AVE YOU ever met a vexed vexillologist? This is someone who frets when flags are badly designed. Sadly, too many flags flutter to deceive: they are cluttered with imagery, a mess of colours and all too easily forgettable. Yet flags matter. Witness Ukraine's blue-and-yellow banner, which now serves as a potent symbol around the world (not to mention on this newspaper's covers). A fine flag can be something that citizens feel proud to pledge allegiance to, as well as an excellent marketing tool. Canada's red maple leaf, for example, has advertised the country on countless backpacks across the world.

A bad banner has an obvious solution: change it. That is what several American states and cities have been doing, or at least contemplating. In March, Utah approved a new standard with a bold beehive to replace its fussier old flag. Maine may ask voters to decide in November whether it should switch from its current, over-intricate design to a different one with a plain pine tree and a blue star, a reinterpretation of an older banner, which is already proving popular. The design is not yet settled, so perhaps a flag with a lobster could pinch the honours at the last minute.

Many people in Minnesota may not even realise they have a state flag-which is lucky. The state representative who has led a campaign to replace the current one has described it as "a cluttered genocidal mess". Its imagery includes three dates from the 1800s, a French motto and a Native American riding away in the background while, in the foreground, a farmer tills the land. A new design is due to replace it next May.

Fortunately, the world has centuries of experience that can help guide better flag design. This has led to a few well-established rules. First, keep it simple. A good test is whether a child can draw it from memory. Japan's red circle in a white rectangle passes the test with, er, flying colours. So does New Mexico's design (pictured), another red-sun symbol, against a yellow background; it is a thing of simple beauty.

Second, use meaningful symbolism: think Israel's Star of David, the Soviet hammer-and-sickle or America's 50 stars, representing all its states, and 13 stripes, evoking the original colonies. (Mozambique, displaying an AK-47 assault rifle, perhaps went too far.) Third, limit the palette to just a few basic colours. True, as South Africa's black-gold-green-white-red-blue emblem shows, it is possible to break this rule successfully, but even the rainbow Pride flag, in its most familiar version, cut two colours from its original eight, because hot pink and cool turquoise made it hard to manufacture. The fact that banners are often viewed from the back helps explain a fourth sensible rule: avoid lettering.

Last but certainly not least: be distinctive. You will then avoid the situation of Indonesia and Monaco, whose flags look the same, as do Romania's and Chad's. Nepal's jagged double-pennon, by contrast, is delightfully unique-the only national flag with an irregular shape. Similarly, Jamaica's is the only one without red, white or blue. Switzerland and the Vatican stand out as the only countries with flags that are square.

Sometimes proposals for new flags fail. Badges of identity arouse strong feelings. New Zealanders rejected a switch in a referendum in 2016. Traditionalists can feel attached to old emblems. But from Maine to Milwaukee, plenty of places-call them flaggards-have dreadful, old-fashioned banners that are ripe for change. In 2004 Pocatello, Idaho, was reckoned in a survey of vexillologists to have the worst city flag in America. It was changed in 2017, and in a survey last year the new flag ranked 11th in the country. Come on, flaggards, do the Pocatello. ■

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Some tips to avoid having an embarrassing emblem | Leaders

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This is just one of the stories from our "I've Always Wondered" series, where we tackle all of your questions about the world of business, no matter how big or small. Ever wondered if recycling is worth it"What percentage of U.S. flags are U.S.-made?" ? Or how store brands stack up against name brands? Check out more from the series here.
Marketplace listener David Keckalo asked us this:

These days, it might seem like every item in your house is manufactured somewhere other than the United States. Maybe even the red, white and blue flag flying outside your house. But, according to the Flag Manufacturers Association of America, 94% of American flags are actually manufactured in the United States.
There's a lot happening in the world. Through it all, Marketplace is here for you.
Of the 6% that are imported to the U.S., 94% come from China. In 2012, the most recent data available, the value of U.S. imports of American flags was $4 million, while the value of exports was $781,222. Like every import, flags of foreign origin entering the U.S. must have a label that legibly states its country of origin.

But "made in America" can be a little squishy. The Federal Trade Commission states that "all or virtually all" of a product must be of U.S. origin to legally claim it is "Made in the U.S.A." So it can be tricky to know if a flag was made entirely of American-made materials. For example, it might be manufactured in the U.S. with American-made fabric but with imported ink.

The Flag Manufacturers Association of America, however, states that its seal on a flag ensures "every step of the manufacturing process for that flag has been completed using domestic materials in U.S. facilities with U.S. labor," according to its website. "When you purchase a flag with the FMAA Certified seal, you can be confident that your flag was not imported from another country."

There have been several proposals in the past to require that all federally-purchased American flags be 100% U.S.-made. The most recent was in 2019, when Sens. Susan Collins and Sherrod Brown teamed up for the "All-American Flag Act."

At the time, Collins said the rule would make sure "the symbol of our nation is preserved while supporting American jobs and manufacturers," the Associated Press reported.

The Department of Defense is required to buy 100% American-made flags. But under current law, the U.S. government is only required to buy flags made from at least 50% American-made materials. The government can ask for a waiver if an item is too expensive, and imported American flags are often cheaper than ones manufactured in the states. The Biden administration is attempting to tighten up loopholes when it comes to the federal government buying "American made," which could apply to American flags going forward.

You rely on Marketplace to break down the world's events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.

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How many U.S. flags are made in the U.S.? - Marketplace

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Perhaps the best-known symbol of American patriotism, the American flag is made in the U.S. 94% of the time.

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10 American Brands That Get Patriotic Marketing | MDG Solutions

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As Americans prepare for the July 4th celebrations this year, patriotism is on the rise. That’s not conjecture, but fact: According to a recently released survey of 5,862 US consumers conducted by Brand Keys, the share of people who consider themselves extremely or very patriotic increased across al…

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MANHATTAN -- The American flag is a common sight across the country on the Fourth of July, and a Kansas State University textiles expert said just as our country has evolved since 1776, so has Old Glory.

According to Barbara Gatewood, professor emeritus of textile science in the university's College of Human Ecology, the American flag has changed considerably throughout the country's history, from the kinds of materials and colorants used in its construction, to the number and ways the iconic stars and stripes are arranged on the flag.

"Early American flags were made from wool, cotton, linen or silk, depending on the availability of materials and the intended use," Gatewood said.

A combination of these materials also was used sometimes. A wool bunting fabric, which was produced in England, was the material of choice for early American flags, she said. This material was favored over cotton, which faded more quickly and didn't unfurl as well in the wind. However, many early American homemade flags were cotton because it was readily available. Linen was a less favorable material, although it was often used to make the stars or to sew flags because of its strength.

"Flags made from silk were more expensive, and thus were used in flags for military purposes and special occasions," Gatewood said.

In 1865, President Lincoln signed a law requiring that the federal government purchase flag bunting only from American manufacturers, which put an end to the use of the popular English-produced wool bunting material in government flags

The first synthetic dye, Perkin's mauve, was not developed until 1856, so early Americans used natural dyes to create the flag's famous red stripes and blue canton, Gatewood said.

"Undyed and sometimes bleached fabrics were used for the white portions of the flag," she said. "The red dye was usually obtained from the root of the madder plant, which, ironically, was also used to produce the British Army's famous red coats, or from the female cochineal, a tiny insect that lives on specific cactus plants. The primary sources for blue dye were woad and indigo, two plants that contain blue dye in their leaves."

Today, most flags are made using synthetic dyes and pigments manufactured primarily from petrochemicals, Gatewood said.

Much like their earlier counterparts, the materials used for today's flag usually are determined by the purpose that flag will serve. Gatewood said cotton often is used to make flags that will be displayed indoors or for decorative purposes. Polyester is very durable, so flags made from this material stand up well to the elements. Nylon flags, while somewhat less durable than those made from polyester, are also very popular because they are lightweight, shinier, fly more readily in the wind and produce a desirable "snap" when flown, Gatewood said.

"Additionally, new technology has produced nylon with weather and UV-resistant properties, such as Dupont's trademarked SolarMax nylon, that significantly improve its resistance to outdoor sunlight and weathering," Gatewood said.

The most common method for assembling the American flag throughout history has been sewing pieces of dyed and undyed fabric together and then sewing or embroidering the stars onto the blue material. Designs can also be printed onto flags. This method traditionally produced lower-quality flags, which made them faster and cheaper to manufacture, Gatewood said. Today some very high-quality flags and banners are produced through sophisticated printing methods.

"As we proudly take part in the long-held patriotic tradition of displaying our national flag this Independence Day, let's reflect on how our flag has evolved and its meaning," Gatewood said. "The U.S. flag is the most well-known national flag in the world and is a symbol of our cherished values of freedom, liberty and justice for all of our citizens."

SIDEBAR: The history of the Stars and Stripes
Before the signing of the Declaration of Independence, when some colonists still believed America would retain some loyalty to Great Britain, the first American flag featured the British Union Jack in place of the 50 stars known today, along with 13 stripes to represent the colonies. Although never formally adopted by Congress, this flag was known as the Grand Union Flag, and was flown on Prospect Hill in Somerville, Mass., by Gen. George Washington on New Year's Day in 1776.

This flag quickly became obsolete when the colonists declared independence from Great Britain. On June 14, 1777, the Continental Congress passed a resolution that read "the flag of the United States be made of 13 stripes -- alternate red and white -- and that the Union be 13 stars, white in a blue field, representing a new constellation." This resolution, however, still left many of the details of the flag's design open to interpretation, Gatewood said.

The Flag Act of 1794 called for two new stars and stripes to be added because Vermont and Kentucky had been admitted as states. This flag, with 15 stars and 15 stripes, was the country's national flag for about a quarter of a century, from 1795-1818. It was this flag design that inspired Francis Scott Key to write the national anthem, "The Star-Spangled Banner," during a battle in the War of 1812. The Flag Act of 1818 restored the 13 stripes to represent the original colonies, whereas the number of stars matched the number of states. Today, the proportions of the flag and arrangement of the stars and stripes are specifically prescribed, Gatewood said, through presidential executive orders signed by President Taft in 1912 and President Eisenhower in 1959.

According to Gatewood, since the adoption of the 13-star flag of 1777, there have been 27 officially mandated flags and 11 unofficial flags, each representing a milestone in our nation's history.

"Kansans should be proud of the 34-star flag that was officially adopted in 1861 -- the year our great state was admitted to the Union," Gatewood said.

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MANHATTAN -- The American flag is a common sight across the country on the Fourth of July, and a Kansas State University textiles expert said just as our country has evolved since 1776, so has Old Glory.

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A treasure trove of economic insight awaits!

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Economic Foundations Unit Plan by Econiful

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Economic Foundations Unit Plan by Econiful

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HOW TO USE Lessons are best used in sequence as they have been built to support students in demonstrating mastery on the end-of-unit assessment. If you plan to use one of the lessons in isolation, we recommend you review the Unit Overview documents to ensure students have the necessary prior knowled…

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Right Start in Teaching Econ Unit Plan by FTE

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Right Start in Teaching Econ Unit Plan by FTE

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This unit also contains lessons for Exchange & Markets and National Economy!

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The Right Start in Teaching Economics lessons were designed for those new to teaching economics - even if not new to teaching! An excellent review or refresher if college economics courses have become a distant memory, Right Start lessons help teachers enter the classroom with renewed confidence in their own understanding of economic reasoning.

Key topics/concepts:

Scarcity/Opportunity Cost

Incentives and the Role of Profit

Markets and Prices

The Role of Government

Trade

The Banking System

Competition and Market Structure

Externalities and Property Rights

Factor Markets and Economics Development

Tragedy of the Commons

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Right Start in Teaching Economics - Foundation For Teaching Economics

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The Right Start in Teaching Economics lessons were designed for those new to teaching economics - even if not new to teaching! An excellent review or refresher if college economics courses have become a distant memory, Right Start lessons help teachers enter the classroom with renewed confidence in their own understanding of economic reasoning.

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The Building Wealth curriculum provides multiple days worth of content with topics that include Setting SMART goals, evaluating financial institutions and products, and creating savings plans. The multi-day curriculum can be shortened or expanded to meet each teachers unique classroom needs. Several Arkansas learning standards for personal finance have been imbedded into the curriculum including:

PFM.8.E.2: Evaluate a variety of strategies for making personal financial goals to build short-term and long-term wealth

PF.5.MM.1: Compare types of banking institutions including products and services available

PFM.8.E.2: Critique components of personal money management in order to build short-term and long-term wealth

PF.7.SI.8: Understand the regulation of savings and investments

Additional Resources To Expand Your Unit:

This 38 minute podcast was created by NPR. The strategies included in the companion article come from the book The Power of Habit: Why We Do What We Do in Life and Business by Charles Duhigg.

The Stock Market Game™ is a national program of the SIFMA Foundation that allows students and teachers the opportunity to invest a virtual $100,000 in stocks, bonds and mutual funds throughout an engaging 13-week simulation each semester. A year-long session is also available that begins in September and ends in April.

Economics Arkansas has been the facilitator of this program in Arkansas since 1999. Check out their website to see how the game is making such a huge difference in the Arkansas classroom: https://www.economicsarkansas.org/for_teachers/stock_market_game.html

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Teaching Fin Lit in Arkansas: Building Wealth - ACRE

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Young adults who are curious about earning and saving money are asking questions about how to set goals and create a savings plan.

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Mastering Interest Rates Unit Plan by ACRE

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Mastering Interest Rates Unit Plan by ACRE

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How do I calculate an interest rate? How does interest work on credit cards? How does interest work on savings accounts? How do rising and falling interest rates affect me? Young adults who are curious about earning and saving money as well as avoiding common debt pitfalls are asking these questions.

Dr. Mike Casey, Professor of Finance at the University of Central Arkansas, regularly discusses these questions and more with Arkansas teachers around the state during professional development workshops and webinars. In partnership with the Arkansas Center for Research in Economics, Dr. Casey developed a set curriculum units for teaching personal finance topics to Arkansas students based on the state's personal finance educational standards. Each unit includes lesson plans, activities, discussion guides, and AMI options for virtual learners.

Mastering Interest Rates

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Teaching Fin Lit in Arkansas: Mastering Interest Rates - ACRE

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The Mastering Interest Rates unit guides students through various life scenarios where interest rates appear...

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The Trade Game is an easy to learn, fun to play, engaging classroom activity that fits easily into any social studies curriculum and is readily adjusted to classes of all sizes and ages.

Economists love to talk about trade. Why is that? The world is a chaotic place. Canadians want oranges in the middle of winter and have no way to efficiently grow them on their own. Trading is a way to encourage Florida orange grove owners to produce more than they, their family and friends could ever eat to give to people who are then able to do other things.

Using the Trade Game, teachers demonstrate some of the benefits of trade to their students and to think through questions like, "When is a trade a fair trade?" and "How can we increase the benefits that individuals in poor countries receive from being trading partners with rich countries?"

How To Play

To begin the trade game, take brown paper bags filled with a variety of items for your students (pencils, stickers, candy, a few bonus points, etc.) The more diverse the pool of items, the better! Each participant receives an item that is theirs to keep, looks in their bag, and is asked to rate how happy they are with the item on a scale of one to ten. These numbers are added together to get a "Happiness Score."

As the rounds of trade continue, students observe that increased access to varieties of goods, services, and trading partner increases the overall happiness of everyone in the class. The activity includes additional follow up discussion questions where students explain their behaviors and experience throughout. The Trade Game is the perfect introduction to any lesson on trade, tariffs, economics, supply chains, prohibition, globalization, and more!

Watch Christy Horpedahl present the "Trade Game" activity to a group of Arkansas educators at a Teaching Free Enterprise in Arkansas workshop.

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The Trade Game is an easy to learn, fun to play, engaging classroom activity that fits easily into any social studies curriculum and is readily adjusted to classes of all sizes and ages.

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Do you know why the number 8760 is important? It's the number of hours in a year. What if we thought about how much of our life it takes to buy something, like a carton of eggs or a house, instead of thinking about how many dollars it costs?

This curriculum explores an alternate way of thinking about the "cost" of any object: the effort that is "hidden" underneath a dollar bill.

Using this curriculum, learners explore historical trends in productivity, how wealth is created in modern economies, and how to technology increases in quality and decreases in price over time.

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This curriculum explores an alternate way of thinking about the "cost" of any object: the effort that is "hidden" underneath a dollar bill. Learners explore historical trends in productivity, how wealth is created in modern economies, and how to technology increases in quality and decreases in price

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Money & Inflation Unit Plan | Marginal Revolution University

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This six-day unit plan introduces inflation to students with a variety of interactive exercises and real-life examples.

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Issues of International Trade Unit Plan by FTE

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Issues of International Trade Unit Plan by FTE

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Issues of International Trade - Foundation For Teaching Economics

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Trade issues occasionally dominate and are a continuing theme of the international scene: the global market, sweatshops, child labor, trade deficits, the euro, sanctions, tariffs, embargoes, and the EU, NAFTA, WTO - the seemingly endless alphabet of interest groups, treaties, organizations, and trade agreements. As a classroom topic, international trade has the great advantage of [...]

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Career Readiness and Budgeting Unit Plan by MRU

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Career Readiness and Budgeting Unit Plan by MRU

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Career Readiness and Budgeting for the Age of AI | Marginal Revolution University

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This free five-day unit plan uses videos, interactive games, real world data, Google slides, LLMs, and science-of-learning techniques to help your students understand how to choose a career in a globalizing and automating world.

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Globalization, Robots and You Unit Plan by MRU

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Globalization, Robots and You Unit Plan by MRU

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Globalization, Robots, and You Unit Plan

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Help students navigate tomorrow's economy with this free, online curriculum.

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Finding Equilibrium: Supply meets Demand Unit Plan | Marginal Revolution University

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Teach high school econ? Check out our new five-day unit that will engage students with a variety of videos, games, and interactive exercises.

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Teaching Economic Freedom Unit Plan by ACRE

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Teaching Economic Freedom Unit Plan by ACRE

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Throughout the lessons and activities in this unit, students discover what factors influence whether or not a given country is economically free. How easily are individuals able to participate in economic activity? Can they own property, start a business, and make choices about how to save, invest, or spend their dollars? Using the Economic Freedom of the World Index developed by the Fraser Institute, students research countries around the world and make comparisons between countries based on economic freedom measurements. Students then move to analyzing the economic freedom of a single country, the United States, and compare Arkansas data to other states in the south and across the country. The full curriculum includes a mapping activity, historical data analysis, videos, podcasts, and discussion topics to talk about economic freedom in your social studies classrooms.

Standards Connections:

The Economic Freedom in Arkansas curriculum ties to Arkansas learning standards for teaching Economics, World History, Geography, and Civics including:

GE.7.E.2 Explain ways in which current trends in globalization affect economic growth, labor markets, rights of individuals, the environment, technological advancement, and resource and income distribution in different nations

GE.7.E.3 Research the impact of international and national economic and political policies on global trade using a variety of sources from multiple perspectives

WSP.2.G.2 Research the impact of interdependence and accessibility among people, places, and environments

PR.3.G.2 Compare the changes over time on the boundaries and characteristics of regions caused by various factors using geographic representations and data (e.g., climate, technology, migration, conflict, government)

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Teaching Economic Freedom in Arkansas - ACRE

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The full curriculum includes a mapping activity, historical data analysis, videos, podcasts, and discussion topics to talk about economic freedom in your social studies classrooms.

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Check out our Event Calendar to find the latest programs and events.

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What is it? A membership is a free account for our primary audience. Members can quickly register for events, see past events they’ve attended, and qualify for the perks below. Who qualifies?

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Sweatshops & Opportunity Costs Unit Plan by ACRE

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Sweatshops & Opportunity Costs Unit Plan by ACRE

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EDM.1.E.2 Justify various economic solutions to problems affecting an individual or society using marginal costs and marginal benefit analysis.

GE.7.E.2 Explain ways in which current trends in globalization affect economic growth, labor markets, rights of individuals, the environment, technological advancement, and resource and income distribution in different nations.

GE.7.E.3 Research the impact of international and national economic and political policies on global trade using a variety of sources from multiple perspectives.

Request Materials:

Download the full curriculum today by clicking below. For physical copies of materials mailed to your home or school, fill out a form to request materials.

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Through the lesson, videos, readings, and activities, learners see how sweatshop conditions compare to the other options people in developing countries have and be invited to think about how having more "bad" options can be better than having less.

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Making Sense of the Federal Budget Unit Plan by FTE

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Making Sense of the Federal Budget Unit Plan by FTE

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Discussions of budgets, debt, and deficits often dominate our news media when it comes to Federal, State, and local government decisions and actions pertaining to providing government services and programs to citizens. These discussions tend to be shallow sound bites or accusations of one interest group or politician trying to score political points or denigrate a policy they do not support. What is usually missing is a rational, measured analysis to help citizens better understand these terms and the implications of each for our country and our economy at the federal, state, and local levels.

This unit of study is designed to bring clarity and understanding to the processes and the outcomes of government spending when it comes to budgeting, running deficits and accumulating debt. It uses economic reasoning (the economic way of thinking) to provide students with powerful critical thinking tools they can apply to the discussion of these topics.

Organized into five lessons the unit covers the topics of; the national debt and its historic origins; government spending and federal budget allocations; sustainability of the federal debt; federal, state and local government budgeting, spending and funding; government financial accounting and reports; how rational public choices can lead to budget deficits.

The unit targets grades 7-12 and has application across the social studies, especially in economics, civics and history courses. The five lessons comprising the unit provide a sequencing that builds on each other, although teachers can use lessons independently if they choose not to cover the entire unit.

Each lesson provides background information in an Essential Understandings section that teachers can use to prepare for a class discussion or presentation or they can assign it as a student reading for homework or class work. The lessons include a student activity that incorporates the concepts of the Essential Understandings material.

The activities engage students in problem solving, critical thinking and group interaction that leads to a more comprehensive understanding of the issues surrounding government budgets, deficits and debts. All activities include debriefing questions for a teacher-led discussion or student response assignment.

Key Terms and Concepts

Federal Debt; Federal Deficit; Discretionary spending; Mandatory spending; Federal Budget; Balanced Budget; Government Revenues; Taxes; Treasury notes, bills and bonds; Interest; GDP; Economic Growth
Myth Busters - The National Debt
Key Terms and Concepts

Choice; Opportunity Cost; Scarcity; Mandatory spending; Discretionary spending; entitlement programs; Social Security; Medicare; Medicaid
To The Penny
Lesson 3: Is our Federal Debt Sustainable?

Key Terms and Concepts

Debt; Deficit; Economic Growth; Expenditures; Federal Reserve; Fiscal policy; Gross Domestic Product; Inflation; Interest rate; Opportunity Cost; Revenue; Taxes; Trade-offs
Can you fix it? The Fiscal Ship
Lesson 4: Where are the Numbers? - Tracking the Words and Tracking the Deeds

Key Terms and Concepts

Assets; Balance sheet; Budget; Deficit; Financial statement; Functions of money; Liabilities; Money
Tracking the Words and Deeds
Lesson 4 Appendix: State and City Budget and Financial Reporting

Key Terms and Concepts

Accrual accounting; Budget; Cash accounting; Debt; Deficit; Interest
Fiscal Health of States
Lesson 5: Debts, Deficits, and Debasement: Using Public Choice Economics to Understand Public Debt

Key Terms and Concepts

Decision making; Inflation; Institutions; Normative economic analysis; Positive Economic Analysis; Private choice; Public Choice Self-interest
Public Choice in Action

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Making Sense of the Federal Budget, Debt & Deficits - Foundation For Teaching Economics

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Discussions of budgets, debt, and deficits often dominate our news media when it comes to Federal, State, and local government decisions and actions pertaining to providing government services and programs to citizens. These discussions tend to be shallow sound bites or accusations of one interest group or politician trying to score political points or denigrate [...]

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EconEdLink - Capital Investments: Human vs. Physical

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Students will exercise their understanding of soft skills through a series of ten scenarios of conflicts that might occur at work.

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To explore the concept that people invest in themselves through education, the students work in two groups and participate in a mathematics game. Both groups are assigned mathematics problems to solve. One group is told about a special technique for solving the problems. The other group is not. The…

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1. Ask the students if they are planning to go to college. What are the costs and benefits of college? Define cost/benefit analysis as the process of examining the advantages (benefits) and disadvantages (costs) of each available alternative in arriving at a decision. Tell the students they may have heard that the price tag of a college education keeps climbing higher every year. In fact, the price of a college education is climbing at a faster rate than the average price level of other goods and services. So, they may ask whether a college education is really worth the price. In other words, do the costs outweigh the benefits?

2. Tell the students that economists see a college education as an investment in human capital. Define human capital as the knowledge and skills that people obtain through education, experience, and training.

Tell the students to watch the Econ Ed Link video about human capital:
https://econedlink.org/resources/human-capital-video-and-quiz/

Investment requires a person to pay for something now with the expectation that they will reap benefits in the future that make the investment worthwhile. In the case of a financial investment, this might mean buying stocks or bonds now with the hopes that the dividends, interest, and capital gains from the sale of the stock or bond, compensate for the risk that the asset might lose value. A business invests when they buy a piece of equipment or new technology with the expectation that the new equipment will increase the productivity of the business and increase profits in the future. In each of these cases, there is an up-front investment, with the hopes of higher income in the future.

3. Investing in higher education is similar. It is an investment with the expectation that a higher future income will compensate the investor - the student in this case - for their risk. In the case of higher education, the economic benefits are many.

4. Show students the following data which shows the unemployment rate for college graduates (blue) and the graduation rate for high school graduates (red): https://fred.stlouisfed.org/graph/fredgraph.png?g=73B Ask the students to explain the relationship between level of education and average unemployment rate. (The unemployment rate for people with a college degree is much lower than for high school graduates.)

5. Next, show students the following data from the Bureau of Labor Statistics: https://www.bls.gov/emp/chart-unemployment-earnings-education.htm Ask the students to explain the relationship between level of education and median weekly income. (Income, on average, is much higher for those with a college degree than for those without.)

6. Tell the students that the financial return on investment in education is often described by economists as a wage premium, and is calculated as the ratio of the median wage of those with a bachelor's degree to the wage of those who have only completed high school. Over time the premium has risen, from a 40 percent premium in the late 1970s and early 1980s to about 80 percent in more recent times. This means that a current college graduate will earn, on average, about 80 percent more than those with only a high school diploma. It is important to realize that 80 percent is an average, and that different college majors have different return on investment. For example, engineering majors have the highest four-year premium at 125 percent, while psychology and social work majors have the lowest premium at 40 percent.

For a more detailed explanation of the college wage premium read this article: https://www.clevelandfed.org/newsroom-and-events/publications/economic-commentary/economic-commentary-archives/2012-economic-commentaries.aspx

7. Tell the students that there are many ways students pay college. Saving for college by students and parents should be part of the equation, but often it is not enough. Part of considering the costs of college is applying for financial aid. The Free Application of Federal Student Aid (known as FAFSA) is used to determine eligibility for student financial aid including grants, loans, and work study. In fact it is used to help determine eligibility not only for Federal programs, but for state aid and institutional (college or university- level) aid. The U.S. Department of Education begins accepting applications beginning January 1 of each year.

8. Click the link below to watch the Saving for College video, and then answer the questions below.
https://www.stlouisfed.org/education/continuing-feducation-video-series/episode-2-saving-for-college
When students have finished the video have them answer the following questions:

· What type of information did Martina learn about careers on the Occupational Outlook Handbook website? (She learned about annual median salary and expected job growth of her two career interests - elementary school teacher and computer programmer.)

· How does financial cost of attending college affect return on investment (ROI)? (Keeping college costs low can increase ROI.)

· People often pay for college using a combination of pre-funding, current funding, and post-funding. Explain each below.

o What is "pre-funding?" (Pre-funding is saving money for college ahead of time.)

o What is "current funding?" (Current funding is paying for current expenses using income earned money by working while attending college.)

o What is "post-funding?" (Post-funding is paying for college using college loans.)

· What is the difference between a Federal and private loan? (Federal loans are made by the U.S. Treasury sometimes have more flexible repayment plans, private loans often charge higher interest rates)

· What is the relationship between level of education and income? (On average, more education is associated with higher lifetime earnings)

· What is the relationship between level of education and employment? (On average, those with more education are less likely to be unemployed)

9. Remind students that there are a variety of education options available to them, including four-year public and private universities and colleges, and two-year community and technical colleges. Students can reduce the financial cost of college by attending a local two-year community college and then transferring to a four-year institution, living at home to save on living expenses, or paying for college while they are working.

10. Instruct students to compare tuition, fees, and estimated students expenses among community college, public four-year college/university, and private college/university. Instruct students to click the link to the college navigator ( https://nces.ed.gov/collegenavigator/ ) and follow the directions in the lesson. Tell the students to write a short summary of the difference in college costs among the various types of institutions.

11. Tell the students that when thinking of investment, students should be mindful of the relationship between the value invested and the expected future income. So, attending an extremely expensive university which results in high levels of debt for a degree with a low wage premium may not be wise. It might be wise to attend a community college or state university to pursue that degree. On the other hand, attending a more expensive private university to earn a degree with a high wage premium might justify a higher level of debt. A common "rule of thumb" is that students should not borrow more than the first year average salary of people in that occupation. Using this guideline would mean that students would be justified in taking more debt to pursue a degree in engineering than in social work.

12. Instruct students to examine current average wages for many occupations, and look for the annual mean (average) wage of several occupations they have an interest in:
https://www.bls.gov/oes/current/oes_nat.htm

If they are not sure what occupation they would like to pursue, then they should start here: https://www.bls.gov/k12/

Note that the rule of thumb is for starting wages and data provided is annual mean (average) wage.

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EconEdLink - The 411 on College Education

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One of the most important financial decisions people make is whether to go to college. The price tag of a college education is rising, but so are the benefits. In this lesson, students will begin by learning the relationship between level of education and the average unemployment rate; and level of education and median weekly income.

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EconEdLink - Should I Be a Professional Basketball Player?

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The purpose of this lesson is to help you explore the relationship between education and income. Income is earned from one’s resources. Those resources might be natural resources (oil field, farm land), capital resources (man-made resources that are used in the production of goods and services: co…

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EconEdLink - The Basics of Saving and Budgeting

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In this personal finance lesson, students will identify ways to spend and save to learn how to reach financial goals.

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This lesson uses a Better Money Habits video to reinforce budgeting concepts.

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EconEdLink - Building Wealth: Save and Invest, Put It In the Bank

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In this lesson, students will compare two savings plans: stuffing a mattress with money and using a bank.

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In this personal finance lesson, students will compare simple and compound interest on savings.

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In this personal finance video, students will learn about insurance and play a Kahoot! game.

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EconEdLink - Benefits of Trade Video and Quiz

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In this economics video, students will learn about the benefits of trade using comparative advantage and play a Kahoot! game.

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EconEdLink - Finding Your Comparative Advantage

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In this economics activity, students will examine their skills to find their comparative advantage.

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EconEdLink - U.S. farmers and the Cuban embargo

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In this economics lesson, students examine trade barriers using the U.S. trade embargo with Cuba.

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EconEdLink - Exchange Rates: How Money Affects Trade

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In this economics lesson, students will compute exchange rates to learn their impact on international trade.

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EconEdLink - Looping Around the World: A Game of International Trade

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In this economics lesson, students will use looping cards to define and provide examples of the terms associated with international trade and analyze the impact of tariffs on the US economy.

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EconEdLink - GDP Data: Is the Economy Healthy?

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This series of lessons will introduce you to economic data that economists use to assess the health of the economy. You will learn about economic data and what they communicate about the health of the economy. This lesson focuses on Gross Domestic Product (GDP), which is important for analyzing the…

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In this economics activity, students examine and explain the role of the Consumer Price Index.

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EconEdLink - Inflation Data: Is the Economy Healthy?

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Newly updated! This series of lessons will introduce you to economic data that economists use to assess the health of the economy. You will learn about economic data and what they communicate about the health of the economy. This lesson focuses on the Consumer Price Index (CPI) as a measure of infla…

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In this economics lesson, students will identify factors affecting GDP in different countries.

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HOW TO USE

Lessons are best used in sequence as they have been built to support students in demonstrating mastery on the end-of-unit assessment. If you plan to use one of the lessons in isolation, we recommend you review the Unit Overview documents to ensure students have the necessary prior knowledge.

LESSON PLANS

The links below will take you to a Google Document. Go to File>Make a Copy or File>Download to add the lesson plan to your files and to edit the documents if you wish.

*See the members-only block below. Summative assessments are only available to Econiful members. Please log in as a member or a pply for membership and return to this page to get started.

Contact Kathleen Cusack with questions at Kathleen@econiful.org.

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EconEdLink - Can you Allocate Ethically?

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In Lesson #4 from the Ethics, Economics, and Social Issues curriculum, students work in groups to analyze allocation methods, apply those methods to historical examples, and role-play a manager's decision to allocate workers' hours in a coffee shop.

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EconEdLink - I Don't Want Much, I Just Want More: Allocation and Decision-Making

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In this economics lesson, students will assess the costs and benefits of product allocation methods.

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In this economics lesson, students will evaluate how demand and supply affect resource allocation.

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One of the main reasons I started this newsletter was because I kept sharing news articles in class with my students, but felt lost when the articles weren't lined up with lessons or when the semester ended. I wanted a way to keep sharing those stories with my students, and with other educators who like using current events in the classroom. I have always wanted this to be a go-to resource for students and educators. It's humbling to know that teachers find value in these posts and are sharing them with their students.

While the Substack platform has a searchable archive, it's not easy to tag or categorize posts. This means a curious educator must read through each post to see if it's a good fit for their classroom. Hopefully, this page will be a helpful reference for educators looking to use Monday Morning Economist in the classroom. If you've developed any resources you're comfortable sharing, please let me know and we can link them here as well.

I have arranged the sections below based on the typical topic order in a principles of economics course. If there are any more "advanced" topics, I've saved those for the end. Posts with multiple concepts will appear multiple times. If you're teaching a special course and want some recommended posts, just leave a comment and I'll see if there's anything that I think would be helpful:

If you know of teachers who like using current events in the classroom, please share this resource with them. Monday Morning Economist will always be a free resource for educators. I'll add this post to the main menu so that it's always easily accessible.

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Monday Morning Economist in the Classroom

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Calling all teachers! If you want to share the Monday Morning Economist with your students, this is the best resource for you.

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Supply and demand is the meat and potatoes of all economic analysis. In this lesson students will get an introduction by creating equations and graphing them to find the equilibrium points. They will have the opportunity to put their Algebra 1 math skills to work in a real world situation by mathematically determining the equilibrium price and quantity using a system of equations.

1. Introduce the lesson by asking the following: how are prices determined? [Answers will vary. Guide students to the correct response that it is the interaction of consumers and producers: the interaction of supply and demand.]

2. Introduce and define demand. [Demand is the quantity of a good or service that buyers are willing and able to buy at all possible prices during a period of time.]

3. Introduce and define the law of demand. [The law of demand states that as the price of a good or service rises (or falls), the quantity of that good or service that people are willing and able to buy during a certain period of time falls (or rises).]

4. Distribute a copy of Activity 1 to each student. Give students a moment to review the questions. Explain that they will fill in the blanks as they watch a couple of short video clips.

5. Reinforce these concepts by showing Episode 2: Demand from the Federal Reserve Bank of St. Louis' Economic Lowdown Video Series: Episode 2: Demand. (Only show video through 2:44. The remainder of the video is beyond the scope of this introductory lesson).

6. Review the answers to the demand portion of Activity 1 using Activity 1 Answer Key.

7. Introduce and define supply. [Supply is the amount of a good or service that producers are willing and able to offer for sale at each possible price during a given period of time.]

8. Explain that typically, as the price of a good or service rises (or falls), the quantity of that good or service producers are willing to produce and sell increases (or decreases).

9. Reinforce these concepts by showing Episode 1: Supply from the Federal Reserve Bank of St. Louis' Economic Low Down Video Series: Episode 1: Supply (Only show video through 2:08. The remainder of the video is beyond the scope of this introductory lesson).

10. Review the answers to the supply portion of Activity 1 using the Activity 1 Answer Key.

11. Demonstrate the law of demand, explaining that each student has $10 to spend on brownies. Draw a chart like the one below on the board. Ask the students: "How many brownies are you willing and able to buy at each of the following prices?" Create your own demand schedule based on the number of brownies students are willing and able to buy at each price (Note: it is acceptable if the demand schedule is not linear for this section of the lesson, but is better if consistent).

1. Ask what the relationship is between prices and quantities demanded. [Indirect or inverse relationship - as the price increases, the quantity demanded decreases and, vice versa, as the price decreases, the quantity demanded increases.] Remind students that this indirect relationship is known as the law of demand.

2. Distribute a sheet of graph paper to each student. Have students follow along and graph the demand curve as you draw the curve on the board.

3. Draw a demand curve as a downward sloping line using the data provided by the students. Reiterate the indirect relationship between the two variables - price and quantity demanded.

As an example, here is a graph of provided data.

1. Explain supply by telling students that you are a brownie producer/supplier and that you are willing and able to supply the following amounts of brownies at each price. Note to teacher: because you want the demand and supply graphs to intersect, base your supply schedule on the class demand schedule. See example below:

2. Ask how we describe a relationship like the one we see between the price and quantity supplied. [Direct or positive relationship - as the price increases, the quantity supplied increases and, vice versa, as the price decreases the quantity supplied decreases.] Explain this is consistent with the concept introduced in item #8 above.

3. Ask students to plot the data from the supply schedule and draw a graph on their graph paper.

4. Draw a supply curve on the board as an upward sloping line using the data from the Supply Schedule above. Reiterate the direct relationship between the two variables - price and quantity supplied. As an example, the graph of the provided data is below.

Ask students to draw a supply curve on the same graph as the demand graph they drew earlier in step 14. Point out the intersection of the drawn supply and demand curves. Ask students what this represents. [Answers will vary. Some students may realize that this is the point at which the quantity supplied equals the quantity demanded.] Show Episode 3: Equilibrium from the Federal Reserve Bank of St. Louis' Economic Low Down Video Series found at https://www.stlouisfed.org/education/economic-lowdown-video-series/episode-3-equilibrium. Stop the video at 3:15.Discuss:

1. Is it supply or demand that determines price? [They both do.]

2. What is the point where the supply curve and demand curve intersect called? [Market equilibrium.]

3. What does equilibrium mean? [Balance, stability.]

4. What does this point represent? [It represents the market clearing or equilibrium price. The price at which the quantity supplied equals the quantity demanded.]

5. What is equilibrium quantity? [The quantity supplied and quantity demanded at the equilibrium or market clearing price.]

Ask students to look at a price of $4 on the graph. Discuss the following:

1. What is the quantity supplied at this price? [3]

2. What is the quantity demanded at this price? [9]

Explain that typically as the price of a good or service rises (or falls), the quantity of that good or service producers are willing to produce and sell increases (or decreases).

Ask students to look at the price of $8 on the graph. Discuss the following:

1. What is the quantity supplied at this price? [9]

2. What is the quantity demanded at this price? [3]

Explain that when the quantity supplied is greater than the quantity demanded, there is a surplus. Ask students what they think will happen that will move the market toward equilibrium; that is, eliminate the surplus. (To sell more of the product, producers will reduce the price. At a lower price, consumers will be willing and able to buy more. This process will continue until the market clears-reaches equilibrium.)

1. Tell students they are going to use what they have learned about supply and demand to mathematically confirm the equilibrium price and quantity.

2. Review and define linear functions. [Linear functions are those whose graph is a straight line.]

3. Review and define a system of equations. [A system of linear equations is a collection of linear functions involving the same set of variables, and in our case today two lines that cross each other.]

4. Review and define slope. [The slope of a line is the number that describes both the direction and the steepness of the line, most commonly referred to as rise over run.]

5. Review how to compute equations for a linear function using data from a function table.

1. Use two points from the table to find the slope using the formula

2. Use the slope and one of the ordered pairs from the table in the formula

3. Solve for

4. Once you have the slope and b, which represents the y intercept, you enter the slope and the intercept into the function for the line.

6. Distribute a copy of Activity 2 to each student. Explain that they are to utilize Activity 2 and work along with you as you solve the problem. Guide students through the process of using the slope intercept form and the substitution method for systems of equations to confirm equilibrium. First graph the supply and demand curves, then find the equation of the lines. Review answers using Activity 2 Answer Key.

7. Distribute a copy of Activity 3 to each student. Give students time to work through the problem in class. Review answers using Activity 3 Answer Key.

Discuss the following:

1. What do economists mean by supply? [The amount of a good or service that producers are willing and able to offer for sale at each possible price during a given period of time.]

2. How does this differ from the way the term supply might be used by a friend? [Answers will vary but might include the amount of something an individual has.]

3. What do economists mean by demand? [The quantity of a good or service that buyers are willing and able to buy at all possible prices during a period of time.]

4. How does this differ from the way a friend might use the term demand? [Answers will vary but might include the amount of something an individual wants.]

5. Describe the relationship between quantity supplied and price. [As the price of a good or service rises (or falls), the quantity of that good or service that producers are willing and able to supply during some time period rises (or falls).]

6. What is the law of demand? [As the price of a good or service rises (or falls), the quantity of that good or service that people are willing and able to buy during a certain period of time falls (or rises).]

7. What is meant by market equilibrium? [The intersection of the supply and demand curves, where they cross; where the quantity supplied equals the quantity demanded. This is also known as the market clearing price and quantity.]

8. How can we mathematically confirm the equilibrium point? [Find the equations of the lines, solve for x and y using a system of equations or by graphing the equations and finding their intersection. X=equilibrium quantity, Y=equilibrium price.]

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EconEdLink - Using Systems of Equations with Supply and Demand Application

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In this personal finance lesson, students will learn supply and demand by utilizing a system of equations.

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EconEdLink - Price Elasticity: From Tires to Toothpicks

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In this economics lesson, students will compare elasticity coefficients of consumer goods.

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EconEdLink - The Wedding of Ms. Supply and Mr. Demand

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In this economics lesson, students will use a wedding to explain changes in supply and demand.

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This is available to a limited number of beta users. Don't fret if you get waitlisted - we will let you know when we've got a slot for you!

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Hey Professor Smith,

Welcome back to EconInbox - your weekly round-up of the best free and engaging econ teaching resources out there.

This week: elasticity. Students often have trouble with elasticity, especially applying it outside of economics. In fact, most people are pretty bad at learning transfer - taking a concept from one area and applying it to another. And yet, it's arguably one of the most important skills. Below, you'll find a few examples of learning transfer in action, but please send others our way!

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Hey Professor Nash,

Welcome back to EconInbox and another week of curated resources for teaching economics! This week: inflation.

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A weekly email of media and activities tailored to what you're teaching.

Copyright © 2021 Marginal Revolution University. All rights reserved.

Have resources to share? We'd also love to hear any other comments you have!

"I'm honored to say EconInbox is my best teaching assistant."

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I look forward to it every week! "

- Dr. Emily Beam, University of Vermont

"EconInbox has been a fantastic aid to teaching AP Micro this year. This is my 7th year teaching and these resources have allowed me to change up my curriculum and have students make more real world connections than ever before. "

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1. Sign up for EconInbox by giving us your Microeconomics, Macroeconomics, or Intro to Economics course schedule.

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Elasticity: Curated Media

Hey Professor Romer,

Welcome back to EconInbox and another week of curated resources for teaching economics! This week: elasticity.

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engage students with the best online microeconomics teaching resources without the hassle of searching yourself. you’ll receive a weekly email with outstanding resources curated by top economic educators like you — matched exactly to the topic you’re teaching that week!

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Engage students with the best online microeconomics teaching resources without the hassle of searching yourself. You'll receive a weekly email with outstanding resources curated by top economic educators like you - matched exactly to the topic you're teaching that week!

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EconEdLink - AP Microeconomics - When Markets Fail

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This lesson supports the Market Failure and the Role of Government section of the Advanced Placement Microeconomics curriculum. Students need to understand the conditions under which a competitive market fails to produce the socially-optimal quantity of a good or service.They also need to know what steps a government can take to correct a negative externality.

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EconEdLink - Competition and Market Structure Video and Quiz

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This video teaches the concept of Competition and Market Structures. In the context of markets, competition refers to the situation when producers would each like to sell their goods or services to the same customers. The great benefit of competition is that when producers compete, they must seek to entice the consumer with a lower price or more desirable quality.

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EconEdLink - Banks & Credit Unions (Part I)

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Students learn about banks and credit unions, identifying similarities and differences between the two types of financial institution. They also evaluate a local bank and credit union to determine which one would be better suited to their needs. (This is Part I of a two-part project.)

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Facts about the United States Flag | Smithsonian Institution

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Until the Executive Order of June 24, 1912, neither the order of the stars nor the proportions of the flag was prescribed.... Learn more

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In this economics video, students will learn about scarcity and play a Kahoot! game.

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EconEdLink - How Will I Pay for College?

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In this lesson, students will learn about current trends in student borrowing and determine a reasonable debt load for hypothetical students. College costs have escalated over the past two decades, and more and more students are relying on student loans to cover the costs. Therefore, it is more imp…

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Many of our student competitions are aligned in part with one or more of the Arkansas Department of Education's Career and Technical Education (CTE) Pathway courses and certain Career and Technical Student Organizations events. Look for the CTE logo below and click on the competition's title to learn more.

Grades 9-12

Do you have students who have an entrepreneurial mindset? Consider introducing them to the $10 Challenge. Students take $10 of their own money and launch a new business venture. Competing students submit a form tracking their finances throughout the competition. Winning students, and their teachers, receive cash prizes, certificates, and medallions.

All submissions are due by Friday, April 5, 2024

Grades 9-12

The Arkansas Economics Challenge is a state-level competition for high school students consisting of three components: a testing portion, a writing submission, and team presentations. Competing students display their knowledge of micro and macroeconomics as well as the global economy. Teachers can register teams of 3-4 students who will compete against other teams from around the state. Winning teams receive cash prizes up to $500, scholarships, and the chance to move on to the later stages of the National Economics Challenge.

2024 Competition: Tuesday, March 12, 2024 (tentative)

Grades 9-12

During the Arkansas Personal Finance Challenge, teams of 3-4 students review a fictitious case study of a family's financial situation, then collaborate and prepare a PowerPoint presentation of suggestions for the family. The top 3 finalists present their ideas to a panel of expert judges. Winning teams receive prize money, certificates, and medallions.

The first-place winning team will advance to the National Personal Finance Challenge which will be hosted in June 2024. Economics Arkansas will provide the 1st place team with $1,500 towards travel expenses to the competition. The National Personal Finance Challenge will provide rooms, meals and transportation to and from the event.

Register here.

Wednesday, April 10, 2024

Grades 4-5

Econ Games is a competitive event for elementary students consisting of three fast-paced rounds. Student teams apply their knowledge of economics and personal finance by creating and participating in an assembly line, taking a critical thinking test, and developing and presenting an idea that solves a real-world problem. Winning teams are selected by a panel of judges made up of local community leaders.

Grades K-8

We have heard the expression "a picture paints a thousand words." K-8 students are challenged to picture economics by illustrating their understanding of its concepts. Students (and their teachers) with the most creative pieces are awarded prize money with student artwork featured on various social media outlets.

All submissions are due by Friday, December 8, 2023

Grades 8-12

Many are familiar with pitch competitions. This competition gives students a real-world application to classroom lessons as they pitch a new business idea before a panel of judges. Winning students receive cash prizes, certificates, and medallions.

All submissions are due by Friday, April 5, 2024

Grades 4-12, College, Teacher

The Stock Market Game™ is a national program of the SIFMA Foundation that allows students and teachers the opportunity to invest a virtual $100,000 in stocks, bonds, and mutual funds over a semester or year-long session. Arkansas is divided into six regions and three divisions: Elementary (4-6th), Middle School (7-9th), and High School (10-12th). College and teacher divisions are statewide competitions.

2023-24 Dates

Fall 2023: September 11 - December 8, 2023

Spring 2024: January 8 - April 5, 2024

Yearlong: September 5, 2023 - April 12, 2024

Grades 5-8

The Youth Entrepreneurship Showcase (Y.E.S.) is a business pitch competition for Arkansas 5th-8th grade students presented in partnership with Arkansas Capital Corporation. Y.E.S. gives students an opportunity to show their creative, critical thinking, and teamwork skills.

All submissions are due by November 6, 2023

© Economics Arkansas 2023

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Economics Arkansas | Student Competitions

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Economics Arkansas facilitates a number of economic and personal finance competitions throughout the year for Arkansas students in grades k through 12.

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EconEdLink - AP Microeconomics - Monopoly

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This lesson supports the Theory of the Firm section of the Advanced Placement Microeconomics curriculum. Students will learn in this lesson that the profit-maximization rules for the monopoly are the same as they are for a perfectly competitive firm but the monopoly will produce a smaller output than society would like it to produce.

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EconEdLink - Production Possibilities Curve

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In this economics lesson, students will use a production possibilities curve to learn about scarcity and opportunity cost.

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EconEdLink - How Does Information and Ethics Impact Decision Making?

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In Lesson #3 from the "Ethics, Economics, and Social Issues" curriculum, students will play the role of a medical professional or a patient to see how information and ethics can alter decision making.

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EconEdLink - Taxation and the National Debt

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In this economics lesson, students will analyze arguments concerning income and corporate taxes and the impact of national debt.

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EconEdLink - Should We Allow a Market for Transplant Organs?

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Should you be able to sell your kidney? Students explore the ethics and economics of organ donation while learning about price ceilings.

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EconEdLink - Multipliers and Fiscal Policy

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In this economics lesson, students will analyze responses to the COVID-19 crisis to learn about fiscal policy and its limits.

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In this economics lesson, students will use marginal analysis to optimize real life decisions.

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In this personal finance lesson, students will analyze the relationship between differing costs using the concept of slopes.

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In this personal finance lesson, students will make a connection between derivatives and marginalism.

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EconEdLink - Covid-19 Fiscal Responses Around the World

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Student rank, research and compare different fiscal policy responses used by various governments during the Covid-19 pandemic.

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Cartoon: "Budget Crunch"
Distribute Resource 1, the "Budget Crunch" political cartoon. Give students a few minutes to look over the cartoon and make observations and inferences. If students become stuck or are confused about the meaning of the cartoon, prompt them with the following:

What in the cartoon are you familiar with or have you seen before? In what context?
[Student answers will vary. They will likely be familiar with some of the items being "crunched" by the lobster. They may also have heard of budget cuts in the news, possibly including local budget cuts that may affect their school or community.]

What terms, images, or connections in the cartoon are new to you or are used in an unfamiliar context?
[Again, student answers will vary. Students may not be sure what the phrase "budget crunch" refers to, or what specific local programs are being "crunched." Inform them that, although the metaphor in the cartoon could make sense in other contexts, for the purposes of this lesson, the budget crunch in question refers to the challenge of balancing the federal budget. The local programs depicted in the cartoon are those programs run by state and local governments that receive some federal funding, such as public schools or housing.]

budget crunch Online Extension: Students may use CEE's budget crunch to comment upon the cartoon. Encourage students to add a caption, thought and/or speech bubbles, and clip art stickers to reinforce the meaning of the cartoon. As an added challenge, have students use these tools to alter the meaning of the cartoon, presenting a perspective that differs from that of the cartoonist.

After students have made observations and listed the things with which they are familiar and unfamiliar, lead a discussion about the cartoon's message, the issue it identifies, and why the issue is important. This discussion will depend on prior knowledge the students bring to this topic, or content the teacher introduces. Use the following prompts if these points do not emerge during the discussion:

What is the likely cause of the "budget crunch"?
[The budget crunch is caused by the desire or need to balance the budget; if the expenditures, such as those required by the programs represented in the cartoon, exceed revenues, then the budget is out of balance and the government must borrow money to cover the difference. This gap between expenditure and revenue is referred to as the deficit. Although there is broad consensus among economists and politicians about the long-term consequences of unsustainable debt, there is much more controversy about the short-term consequences of debt. Widespread concern about those consequences has been generated by political activists and politicians advocating for increased revenue, reduced spending, or both, to balance the budget in as few as 5 years.]

What are the possible costs or consequences of the budget crunch?
[The cartoonist might be using the lobster claws as a metaphor for the way in which attempts to balance the budget must squeeze (or chop off) funding for individual programs. With scarce resources, not everything can be funded at the level advocates for a program might desire. Legislators charged with taking responsibility for the overall budget will have to make choices. In economic terms, this means that trade-offs must be made, opportunity costs understood, and next-best alternatives accepted.]

What point of view does the cartoonist have on the need to reduce deficit spending?
[It might be safe to assume that the cartoonist favors treating deficit spending as a near-term problem that must be solved, or he would have depicted pressure from a competing imperative to continue or even increase short-term deficit spending to boost the productivity of a sluggish economy. The choice of lobster claws as a metaphor also implies that the cartoonist may favor spending cuts over tax increases as a method for balancing the budget.]

Mini-Lesson: Federal Budget Basics
Present a brief mini-lesson to introduce or review the basic concepts and vocabulary of the federal budget. The concepts introduced here are developed in much further detail in the other economics and civics lessons in this curriculum.

Online Extension: What are the tradeoffs that policymakers face when steering the federal budget? To answer this question, students will grapple with the complexity of federal budget choices as they play The Fiscal Ship , a game created by the Hutchins Center on Fiscal & Monetary Policy at the Brookings Institution and the Serious Games Initiative at the Woodrow Wilson Center . Students will set policy goals and strive to make budgeting decisions that both advance those goals and reduce the federal debt, weighing conflicting advice from opposing perspectives on the possible impact of their choices.

Emphasize the following concepts and key points in the mini-lesson:

The amount of money the government takes in each year (largely through individual or corporate taxation) is known as revenue. The amount it spends is known as expenditures. When revenue equals expenditures, the budget is balanced. If the government takes in more money than it spends, it has a surplus. If it spends more money than it takes in, it must borrow to make up the difference. That difference is known as the deficit.

The accumulated deficit over many years is known as the debt. One measure of the health of the economy is the debt-to-GDP ratio. The gross domestic product (GDP) is a measure of total production in the economy in a year. The theory behind using the ratio is that, as the economy grows, the government's ability to pay back its debt improves, so any absolute level of debt becomes less significant.

The federal government cannot raise unlimited amounts of money because taxation itself has direct and indirect costs and consequences. This limit on resources is called scarcity because the federal government, like any other budgetary unit (an individual, a family, a company), has an unlimited number of ways in which it might use its limited resources. Scarcity means that balancing the budget requires making choices, and choices always involve trade-offs. The same money can't be spent twice. A choice has two costs-the direct cost of the choice and the "cost" of giving up something. The cost of giving up something is called an opportunity cost-the cost of a missed chance to get the second-best alternative, the second choice.

Some federal programs have long-term legal or contractual obligations, and thus are difficult or impossible to cut in the short term. Spending money on these programs is not a choice. These are known as mandatory programs, and include Social Security and Medicare. Required spending on mandatory programs limits how much money Congress can choose to allocate to discretionary programs, for which Congress does have funding power.

Revenue, whether raised through taxation or borrowing, is limited, so Congress and the President must make difficult and interdependent decisions when they build the federal budget. Choosing to spend money on one program means there is less opportunity to spend money on another program. Congress and the President must decide (1) which programs to fund and at what level, (2) whether to raise or lower taxes, and (3) whether to borrow money instead of (or, in addition to) raising taxes. These choices all have economic consequences. Those consequences are the focus of this lesson.

LESSON STRATEGIES AND ACTIVITIES Context on the Debt
Distribute Resource 2, Background on the Debt. Instruct students to read the graphs, first individually and then with a partner. Their aim should be to come to a consensus on the most important points these documents include about the debt and determine what additional questions these facts raise.

As a class, review the documents, as well as students' conclusions and questions. Make sure students understand the distinction between "debt held by the public" and debt that one part of the U.S. government owes to another. Explain that the former is bonds and other securities purchased by entities besides the U.S. federal government, including individuals, corporations, and the governments of other countries. Debt held by government accounts is debt the government owes itself; for example, the federal government has borrowed from the Social Security Trust Fund because that fund has accumulated surpluses. Clarify for students that the individuals, corporations, foreign governments, and/or trust funds that loan the U.S. government money do so as an investment, as a way to earn money. They expect to receive their money back with interest. Lead a class discussion on what these facts and figures may tell us about balancing the budget. Use the following prompts as a guide:

What are some of the main features of the debt of the U.S. government?
[Student observations will vary, but may include some or all of the following: most debt is held by the public; of the debt held by the public, the largest portion (but not the majority) is held by foreign governments, with the next largest portion held by private investors. Of the money the government has borrowed from itself, most of that debt is held by the Social Security Trust Fund.]

What is the reaction of students to these numbers? What questions do they have as a result of considering them?
[Student responses may vary; they may see these numbers as quite large, but may want more context to determine how large they really are and what the practical consequences may be. Encourage students to further develop questions about the debt (for example, on the significance of the difference between money the government owes to itself and money the government owes to others-"the public"). Some of these questions will be addressed by this lesson and others will be part of the lesson assessment to encourage further inquiry.]

What would be some of the potential benefits of balancing the budget? Conversely, what are some of the costs of not balancing the budget?
[This is an opportunity to push student inference beyond the scope of Resource 2 or to introduce additional material. Benefits may include less reliance on international investments, smaller debt as a percentage of GDP, a smaller portion of the budget devoted to interest on the debt, and the increased flexibility to borrow in the future. Based on the political cartoon in Resource 1 and the information on money the government is borrowing from itself, students will realize that balancing the budget may have opportunity costs, including programs that cannot be funded and the costs of taxation. They might note that, if the government issues less debt (i.e., borrows less by selling fewer bonds), large investors like the Social Security Trust Fund will actually have fewer safe investment opportunities.]

How has the debt changed over time? What might have driven these changes?
[Debt held by the public as a percentage of GDP remained below 50% until the Great Depression. It was generally quite low, although it started high in 1790 and spiked in the 1860s and late 1910s, indicating that the primary driver of debt until that time was war. World War II led to a massive spike in the debt held by the public as a percentage of GDP, which gradually declined through about 1970. Since then, it has increased slightly, particularly in the late 1970s and late 2000s. One reason for increases could be economic downturns in the late 1970s and late 2000s, which lowered the GDP growth rate and, as a consequence, tax revenues-thus increasing debt held by the public as a percentage of GDP. In addition, the cost of military buildup at the end of the Cold War (in the 1980s) increased the need for deficit spending. Declines in the debt held by the public as a percentage of GDP (during the 1990s, for example) were a consequence of faster economic growth and, with that faster growth, increased tax revenues. The debt held by the public is projected to continue to increase in the foreseeable future, although updated projections as of 2016 indicate that it will not rise as quickly as was feared in 2010.]

Given these numbers, students may become alarmed and may be quite inclined to support a balanced budget, or even a budget with large surpluses to reduce the debt. Remind students that, based on the Entry activity, balancing the budget or raising a surplus will have costs as well. Ask students to think about the circumstances (if any) under which the budget should be balanced, and when, if ever, some debt might be good. Determining when the government should prioritize balancing the budget, given the costs and benefits of doing so compared to alternatives, and when, if ever, the government should take on more debt is the focus of the remainder of the lesson.
Balancing the Budget in the Short Term
Distribute Resource 3, Balancing the Budget in the Short Term. Tell students they will be analyzing a cartoon and reading examples of deficit spending descriptions and of purposeful deficit spending.

Using the same approach they used for the "Budget Crunch" cartoon (i.e., beginning with familiar points of reference), ask students to look at the cartoon, "Debt and Unemployment." Propose to students that "debt" represents long-term economic problems and "unemployment" represents short-term economic problems. Students should then develop their own interpretation of what the cartoon says about the trade-off between long- and short-term economic problems. Take the students beyond the information explicitly included in the cartoon, and lead a discussion in which they share their views on what the cartoon means, the trade-off it points to (paying down the debt at the cost of increasing unemployment), and their own initial thoughts on that trade-off.

[ Student observations may include that, in the cartoon, the debt appears to be a larger problem than unemployment. However, by representing the debt as a (presumably gluttonous) pig, the cartoonist could be suggesting that politicians call a great deal of attention to the debt, a long-term problem, at the expense of concern about short-term fluctuations in the economy that lead to problems like unemployment. Student opinions will likely vary as to whether they agree with this interpretation and/or with the cartoonist's point of view.]

Students should then read the description of fiscal stimulus, which offers a very brief overview of one of the basic ideas of John Maynard Keynes; namely, that in times of short-term recession in which the economy is operating below its long-term equilibrium level of employment, the government can stimulate the economy by increasing spending and lowering taxes, even though that inevitably increases deficits and debt. This is known as deficit spending or fiscal stimulus, and stands in contrast to policies aimed at reining in debt, or fiscal austerity. Students should discuss with a partner how this relates to the message of the cartoon, and if their perspective on the cartoon has changed. Answer any questions students have on the basics of Keynesian theory to ensure they understand the concept and mechanics of it before moving on.

Students should then read through the "Perspectives on Short-Term Stimulus and Borrowing," first independently and then comparing notes with a partner or group to challenge and question one another. Circulate among the groups of students and probe their observations and inferences based on these perspectives. Prompt them with further questioning to engage them in looking at multiple points of view on the subject of balancing the budget versus borrowing money in the short term: What information can they gather from these excerpts? What types of evidence do the excerpts use? What is the source of this information, and do the students find the source credible? What additional information would be necessary to put this information in context and draw conclusions about the costs and benefits of balancing the budget versus borrowing money in the short term? Lead a class discussion on the findings, pushing students to dig deeper into the evidence.

For homework, students should look for examples of fiscal stimulus (and its opposite, fiscal austerity), as well as evidence and opinions on the effects of each policy, by going to the blog at https://www.econedlink.org/resources/collection/understanding-fiscal-responsibility/ or by looking in the newspaper. (If students have Internet access, the blog is well suited to this assignment because it is based on current economic events. A search for the terms "stimulus" or "austerity" will yield news articles on these topics.)

Begin with a review of the costs and benefits of balancing the budget in the short term, using the examples students found for homework as a starting point. Inform students that, although economists and policymakers disagree about the relative merits of balancing the budget compared to fiscal stimulus in the short term, the debate changes somewhat regarding long-term budget shortfalls (deficits). ("Long term" is defined by more than years. Because the economy takes time to adjust to new conditions, and some things are more flexible than others [like the price of candy-flexible-versus salaries, or the number of factories in a country-not so flexible], economists specify that a defining measure of long term be the period of time over which all prices have had time to adjust to changing conditions, and over which new capital goods, such as factories, can be built.) Policymakers give importance to the distinction between long- and short-term budget shortfalls because deficit spending and debt that is justified in the short term to address a recession may have different consequences, some good and some bad, over the long term. For example, some types of debt represent an investment in long-term economic growth and therefore "pay for themselves." Debt accrued to build a mass transit system might be an example of this. On the other hand, in the long run, very large debt can be unsustainable and weigh down the economy. Distinguishing between the short term and the long term, and between debt that weighs down the economy by increasing interest rates and discouraging private investment and debt that funds public investments that help the economy grow, is the challenge of the second day of this lesson.

Distribute the political cartoon in Resource 4, Balancing the Budget in the Long Term. Beginning with an analysis of the cartoon, students should use Resource 4 to understand the various points of view presented on the costs and benefits of balancing the budget and incurring debt in the long term.

What does the cartoon suggest about the connection between debt and growth?
[Interpreting the cartoon requires some inference. It suggests that the spending and borrowing of Big Government has created a cloud of excessive debt that shadows the nation's future prospects for long-term growth.]

Distribute the three brief readings, Perspectives 1-3, also in Resource 4. Ask students to analyze the three points of view on balancing the budget in the long term that they represent. Students should identify the position each writer takes and the evidence the writer uses to support that position. Students should decide whether they find that evidence credible, what additional questions they would ask, and what further information they would seek to further confirm or disconfirm the validity of each author's conclusions.

After students have examined these documents, lead a class discussion on what the collection suggests about the long-term costs and benefits of balancing the budget versus incurring debt. The following questions are suggested to prompt students on key points from the documents:

The authors agree that under some circumstances debt in the long term may be good. What are those circumstances?
[Although they differ on the extent to which they support or are alarmed by debt in the long term, all three authors agree debt that promotes economic growth through investment can be good for the economy.]

What are some of the concerns raised about long-term debt?
[Some of the authors raise concerns that it is difficult to tell in advance what types of investments will help the economy grow as opposed to those that will prove wasteful. Further, too much debt can "crowd out" private investment, lead to higher interest rates, and inhibit economic growth, although the direction of causation is unclear and the evidence supporting this assertion is controversial.]

What evidence do the authors cite to support their claims? Is this evidence credible?
[The authors cite studies of the experience other countries have had with public debt and economic growth.]

What additional questions do you have or information and evidence would you seek to more fully evaluate these positions?
[Student responses may vary, but they may wish to know more about these studies, including whether the countries are representative, whether other economic factors might explain the results, or whether the causation implied by the authors is correct; for example, countries with less growth may need to incur more debt. In this case, debt would be correlated with weak growth, but would not be the cause of it. In fact, the reverse might be true.]

Establishing Criteria for Evaluating Budget Proposals
Using this information, as well as their own values and priorities, students will envision themselves as economic experts who write editorials and appear on television news broadcasts offering commentary and analysis on the news of the day. They will need to use a consistent set of economic criteria in order to judge the adequacy of a budget proposal. The proposal might be based on balancing the budget, or it might build in deficit spending that will stimulate the economy. Students should use the concepts learned in this lesson and the graphic organizer in Resource 5 to decide on the criteria they will use for evaluating the proposal. The organizer models this process using the criterion "debt is at a sustainable level." This sample entry can be distributed to students or retained as a teacher resource. Within each criterion, students will create a set of questions. The answers to these questions will tell them whether the proposed budget meets their criteria for a good budget. Of course, they will also have to decide on the kind of evidence they consider solid.

To help students get started, give them two examples of the types of proposals they would be considering with their criteria, one short-term and one long-term. Remind them that they do not need to actually evaluate these proposals at this point; instead, the aim is to give them a tool they can use to evaluate any budget proposal as they become voters and engaged citizens.

Short-term example: Raising concerns about stagnant wages and potential weakness in the global economy due to declining energy prices, a group of representatives in Congress has proposed a stimulus package to increase wages and stave off unemployment and a potential recession. The package would consist of $100 billion in increased assistance to needy families; $100 billion in subsidies for job retraining for those who have been out of work and looking for a job for more than 6 months; $100 billion to help state and local governments hire more police officers, firefighters, and teachers; and $100 billion for major transportation and other public works projects. The proposal calls for these programs to be paid for with additional borrowing, rather than tax increases, because lawmakers fear that raising taxes will harm economic recovery.

Long-term example: Deeply concerned with the effects of excessive public debt on interest rates and private investment, and with the long-term fiscal stability and sustainability of the U.S. government, the president unveils a proposal to automatically trigger aggressive debt reduction whenever the economy is doing well. He defines "doing well" as any time unemployment dips below 6% for 6 straight months. At that point, tax revenues will increase by $500 billion a year by closing loopholes and raising rates. In addition, substantial cuts to discretionary programs and reductions in benefits for mandated programs will result in a $500 billion cut in yearly spending. The increased tax revenues and reduced spending on mandated programs will produce immediate surpluses that can be used to start paying down the debt.

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EconEdLink - Balancing the Federal Budget

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ESSENTIAL DILEMMA When, if ever, should the nation prioritize balancing the federal budget?

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EconEdLink - FRED and the Federal Budget Interactive Lesson

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Students will use a Federal Reserve Economic Data (FRED) data dashboard to calculate budget deficits, surpluses, how much federal budgets in certain budget years added to the total public debt, and gross federal debt as percent of GDP. Using the information they have collected, students will answer questions requiring analysis and inference.

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EconEdLink - Federal Budget: The Fiscal Ship Game

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In this economics lesson, students will evaluate fiscal policy objectives to learn the challenges of sustainable national budget formation.

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Great Infographics and other publications from the Fed!

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NMAH | The Star-Spangled Banner: The Flag that Inspired the National Anthem

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This permanent exhibition is the Smithsonian's greatest effort to meet the dual challenge of preserving this treasured flag and communicating to visitors its history and significance. A two-story display chamber in the National Museum of American History protects the flag while providing a dramatic view of its "broad stripes and bright stars."

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The American Flag | Social Studies Shorts | PBS LearningMedia

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Flags can be used to represent a group, as a signal, or even as decoration. In this episode of Social Studies Shorts, learn about the history of the flag of the United States from its beginnings as a military flag to its most recent change when Hawaii was added as a state.