Econ Alive! The Power to Choose - Interactive Student Notebook

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Unit 1: The Economic Fundamentals

Unit 2: How Markets Work

Unit 3: Economic Institutions and Organizations

Unit 4: Economics of the Public Sector

Unit 5: Measuring and Managing the Economy

Unit

and the Global Economy

Unit Introduction: The Economic Fundamentals

READING NOTES

In order to complete this project, you’ll need to learn about the fundamentals of economics.

In this unit, you will encounter these economic concepts. Write what you already know about the concepts below. Then, after each lesson, write what you have learned about each concept.

Concept What you know at the start of the unit What you know by the end of the unit

Scarcity

Tradeoff

can you

a country’s

An Economic Way of Thinking

How can you think like an economist?

Vocabulary Terms

As you complete the Reading Notes, use these terms in your answers: economics economy positive economics normative economics

scarcity tradeoff cost-benefit analysis incentive PREVIEW

Respond to each question. Provide a thorough explanation for each decision.

1. If you could choose between two nearly identical products—one that is free and one that you have to pay for—which would you choose? Why?

2. If you were opening a new business, would you select a location closer to or farther away from a business that sold a similar or even identical prod uct? Why?

3. If you could make a small change in your daily routine that would save you time and money, would you make the change? Why or why not?

READING NOTES

Section 1

Follow these steps to write a nine-line acrostic poem explaining what economics is about.

• Write the term ECONOMICS vertically along the left side of a notebook page. Begin each line with a word that starts with the appropriate letter.

• Each line must help answer the question, What is economics all about?

• Include the following terms somewhere in your acrostic: enigma, resource, scarce, science, normative economics, and positive economics.

Section 2

Set up a table with rows to list seven principles of economic thinking. In the first column, write the name of each principle. Then, create a symbol or simple illustration that helps explain that principle. Finally, write a one-sentence summary of the principle.

Principle Symbol One-Sentence Summary

Scarcity forces tradeoffs

Cost versus benefits

Section 3

1. Create a flowchart illustrating the steps of the scientific method. Think of a concrete example of how an economist would use this tool. Write an explanation of what the economist would do in each step of the process. An example is begun for you. You may use this example question or create your own.

Ask a Question

Would raising highway speed limits improve the economy?

Research the Question

2. Follow these steps to create a graph.

• Draw a coordinate system with an x- and y-axis.

• Examine the data to be graphed (in the table below). Determine an appropriate title for each axis.

• Determine appropriate labels for each axis.

• Graph the data.

• Connect each point to create a curve.

U.S. Unemployment Rate, 1955–2015 Year Unemployment Rate 1955 4.6% 1965 4.5% 1975 8.2% 1985 7.2% 1995 5.6% 2005 5.1%

5.4%

3. Write a short explanation of how economists use graphs.

4. Explain the rational-behavior model. Give an example from your own life in which you have used, or applied, this model.

PROCESSING

Enigma

A puzzle that seems to defy common sense

Here are four economic enigmas.

• Why do economy seats on airplanes cost different amounts?

• Why do people pay more for name-brand products when there are generic brands of the same product available for less?

• Why do police officers get paid so much less than professional baseball players?

• Why does a five-day Disneyland pass cost only 2.5 times what a one-day pass costs?

Choose one of these economic enigmas, or think of one that you have observed in your own life. Follow these steps to apply an economic way of thinking to help explain your enigma.

1. Write your economic enigma in your notebook. Then, list any economic principles that help ex plain your enigma.

2. Choose the one principle that you believe best explains your enigma. Explain why this principle provides the best explanation.

Economic Decision Making

Why can’t you always get what you want?

Possible Activities

Vocabulary Terms

As you complete the Reading Notes, use these terms in your answers: goods services

of production entrepreneurship capital

productivity opportunity cost production possibilities frontier (PPF)

PREVIEW

It is Friday night. Your only chunk of free time all weekend is tonight from 6:00 to 11:00. Before deciding how you will spend this time, consider these factors:

• You have $40 to spend.

• You have an economics test on Monday.

• This is the last football game of the season.

• It is your mother’s birthday.

• Someone you like has asked you out on a date.

• Your favorite band is in town tonight.

Fill in a table like the one below showing how you plan to spend your time. Create your own activities or choose from the list of possible activities. If you choose an activity from the list, use the given time and price.

Time Activity Price

p.m.

Football game: 3 hours, $5

Dinner: 2 hours, $20

Movie: 2 hours, $10

Rock concert: 4 hours, $40

Study for test: variable time, $0

Hang out at friend’s house: variable time, $0

Work at job: variable time, earn $10 per hour

Family time: variable time, $0

Now answer these questions.

1. What decisions did you have to make in this exercise?

2. What constraints did you face when making these decisions?

3. For each decision you made about how to spend your time, what did you have to give up?

READING NOTES

Section 1

1. A pictoword is a symbolic representation of a word that shows its meaning. Write a definition and create a pictoword for each of these terms: wants, goods, services, scarcity, shortage. Two examples are given.

2. Why is what we want scarce?

3. List three goods that you see in your classroom and two services that exist in your school. Explain why these goods and services are scarce.

Section 2

1. Write a definition and create a pictoword for each of these terms: land resources, labor resources, human capital, capital resources, entrepreneurship

2. Gary Becker, winner of the Nobel Prize, says that “human capital is by far the most important form of capital in creating wealth and growth.” Why does he say this?

3. What are three roles that entrepreneurs perform in the production process?

4. Create a flowchart, with simple illustrations, highlighting some of the factors of production that go into creating a good such as a pencil or a car.

Section 3

1. Write a definition and create a pictoword for each of these terms: utility, opportunity cost, diminishing marginal utility

2. Identify one decision that you made in the Preview (for example, to attend the football game). List all the tradeoffs of that decision. In your list, circle your opportunity cost of that decision. Then explain why this is your opportunity cost.

3. Using the decision matrix in Section 3, make a decision about how you should buy dinner. List the tradeoffs of that decision, as well as the opportu nity cost.

4. Describe or draw an example of a time in your life when you encountered diminishing marginal utility.

Section 4

1. Why do economists use the production possibilities frontier (PPF)?

2. Copy the table of data and PPF below. Plot Points A to E on your graph and connect them.

Wheat vs. Computer Chip Production

Computer Chips

Wheat and Computer Chips PPF

3. Answer these questions.

a. What is the opportunity cost of increasing wheat production by 200 pounds by moving production from Point B to Point C ?

b. What is the opportunity cost of increasing wheat production by 200 pounds by moving production from Point C to Point D?

c. Why might the opportunity cost vary so greatly?

d. Plot Point F at 800 pounds of wheat and 800 computer chips. How could this economy move production to Point F ?

PROCESSING

Find a photograph of yourself that also shows examples of goods and services and factors of production. Tape it into your notebook.

Identify three to five goods or services in the photograph. Draw a line from each one to a caption that tells why it is a good or a service.

• Identify two or three factors of production in the photograph. Draw a line from each one to a caption that tells how it is an example of land, labor, or capital.

Finally, describe where you are and why you are there. Then identify your opportunity cost for being there.

Economic Systems

Who or what decides what you get?

Vocabulary Terms

As you complete the Reading Notes, use these terms in your answers: economic equity economic system traditional economy command economy

market economy factor payment mixed economy free enterprise system

Answer these questions about the cartoons.

• Where are the people in each cartoon?

• How would you describe each scene?

• Who or what decides what consumers get in each cartoon?

• What advantages and disadvantages do you see represented in each cartoon?

• Which store would you prefer to shop in, and why?

READING NOTES

Section 1

Examine the two cartoons.

1. For each of the three fundamental economic questions, explain why it is important for society to answer that question.

2. Rank the six economic goals from most important to least important. Write a one- or two-sentence justification of your rankings.

Section 2

Make a table like the one below in your notebook. Create a simple symbol to represent each type of economic system. Then record key features of that system and which economic goals it emphasizes.

Economic System Symbol Key Features Economic Goals

traditional economy ancient command economy market economy modern command economy Section 3

1. What are three roles of government in a mixed economy? For each role, explain whether you view this involvement as positive or negative, and why.

2. Create a spectrum like the one below. Choose four or five countries that are discussed in the text, and place them appropriately along your spectrum. For each country, write a sentence justifying your placement.

Free

Section 4

List the seven key characteristics of the American free enterprise system. Write a sentence explaining each characteristic. Also give one example of where you have seen this characteristic in our economy.

PROCESSING

You have been hired to write the lyrics to a song titled “Who or What Decides What You Get?” Your song should be sung to the tune of any popular or well-known song. The lyrics must explain the difference between a market economy and a command economy. You may create one song that includes information about both market and command economies, or you can create two versions of the song—one about market economies and one about command economies.

Your song must

• include at least four Vocabulary terms from this lesson.

• include at least one of the primary goals of each type of economic system.

• explain the role of government in each type of economic system.

• highlight at least two benefits and two drawbacks of each economic system.

Gains from Trade

How does trade make people better off?

Vocabulary Terms

As you complete the Reading Notes, use these terms in your answers:

specialization economic interdependence division of labor absolute advantage

Section 1

READING NOTES

1. As you read, create a flowchart showing the effects of specialization on the economy. Include these terms in your flowchart: division of labor, produc tivity, standard of living, economic interdependence. The flowchart has been started for you.

barter comparative advantage voluntary exchange money specialization

division of labor encourages trade PREVIEW

Imagine that you are the manager of a fast-food restau rant. You are outgoing, interact well with customers, and work the cash register proficiently. You are also efficient in the kitchen and can manage several tasks at once, such as making pizzas, preparing salads, and filling drinks. You have one employee who is slow in the kitchen and often struggles to cook while filling drink orders. Your employee works the cash register well but interacts little with the customers.

Answer these questions.

1. What is your opportunity cost if you work the cash register?

2. What is your opportunity cost if you work in the kitchen?

3. Based on your opportunity costs, describe where you will work and where you will place your employee. Explain your rationale.

2. Explain why not all societies specialize.

3. Reflect on a time when you recently traded or bought an item. Describe this exchange, using the following economic terms: voluntary exchange, coincidence of wants, barter, money.

4. Create two illustrations, one showing a society that is self-sufficient and one showing a society that is economically interdependent. For each illustration, write a one- or two-sentence caption that uses these terms.

5. What is significant about the Commerce Clause of the Constitution?

Section 2

1. Create a simple sketch showing what Crusoe and Hawkins could produce if the two men lived in dependently on different sides of the island. Write a one- or two-sentence caption explaining why Hawkins has an absolute advantage in food pro duction. Use the term absolute advantage in your caption.

2. Create a sketch showing Crusoe and Hawkins calculating their opportunity costs to determine their comparative advantage. Write a one to two sentence caption explaining why Hawkins has a comparative advantage in gathering coconuts and Crusoe has a comparative advantage in catching fish. Use the terms comparative advantage and op portunity cost in your caption.

3. Create a sketch showing Crusoe’s and Hawkins’ gains from trade when they produce and trade the good for which they hold a comparative advantage. Write a one- or two-sentence caption explaining why both men benefit from trade in this scenario. Use the terms comparative advantage and gains from trade in your caption.

4. Sarah and Joe can both produce kites and toy trains. The table shows the number of kites and trains they can each produce in one hour.

Kites and Trains Produced

Trains per Hour Kites per Hour

Sarah 3 2 Joe 1 1

a. Who has an absolute advantage in the production of both kites and toy trains? How can you tell?

b. Who has a comparative advantage in producing kites? Why?

c. Who has a comparative advantage in producing toy trains? Why?

5. Identify the factors that may result in each of the following places having a comparative advantage in producing the corresponding good. For exam ple, for “Idaho—potatoes,” you might write, Idaho has a comparative advantage in growing potatoes because of its rocky and sandy soil.

a. Hawaii—pineapples

b. Texas—beef

c. Japan—advanced technologies

Section 3

1. Create a spoke diagram showing how trade makes us wealthier.

a. In the center of a page, in an oval, write, Trade makes us wealthier by . . .

b. Attach three spokes to the center oval, one for each of these statements:

• moving goods to those who value them

• increasing the quantity and variety of goods

• lowering the costs of goods

c. As you read the section, add three spokes to each statement with these things:

• a simple illustration

• an explanation of the statement in your own words

• two examples of how it makes us wealthier

A sample spoke diagram is started for you.

your illustration two examples in your own words

moving goods to those who value them

Trade Makes Us Wealthier by . . .

2. Write one or two sentences in support of this state ment: Free trade is good for America. Then write one or two sentences that refute it.

PROCESSING

Create a colorful comic strip illustrating the concept of comparative advantage. Your comic strip should include

• at least two characters (not Crusoe or Hawkins).

• a title.

• a caption or voice bubble containing the term comparative advantage.

• captions or voice bubbles containing at least two of these terms: specialize/specialization, division of labor, opportunity cost, absolute advantage, economic interdependence.

Economic Inquiry: Improving a Country’s Economy

Economic Question: How can you improve a country’s economy?

READING NOTES

Economic Question: How can you improve a coun try’s economy?

Government policies and actions can affect a coun try’s economic freedom. Watch the video to find out more.

1. Which country was your group assigned?

According to the Handout, how economically free is this country?

2. Each country’s level of economic freedom was determined based on four criteria categories. Divide these four categories among the members of your group.

Then research your category to better understand your assigned country’s economic freedom ranking. Prepare a report and share your findings with the rest of your group.

3. What supporting questions do you have about economic freedom in your assigned country?

Use reliable sources to answer these questions. Record your sources.

Supporting Questions Answers Sources

4. Imagine that you and your group are acting as advisers to your assigned country. Together, create a plan that advises the country on how it can improve its level of economic freedom.

Identify which aspects of the rule of law, government size, regulatory efficiency, and market openness the government should address. Indicate the changes the government should make.

5. Present your plan to the class. Use supporting evidence and reasoning as you

• describe the country’s current level of economic freedom

• explain the factors (criteria) that have influenced its current level of economic freedom

• identify which factors (criteria) the government should address

• specify the changes the government should make

• discuss the likely outcomes that would result from these changes

Demonstrate how your plan can improve the country’s economy.

Use this rubric to evaluate your inquiry project.

Proficient (2 points)

Research Researched how aspects of criteria category affects country’s eco nomic freedom. Asked thoughtful supporting questions about coun try’s economic freedom. Evaluated and recorded information regard ing country’s economic freedom.

Analysis Used research to explain the factors that influ ence country’s economic freedom. Used infor mation to determine changes the government should make and their possible outcomes.

Public Product Clearly communicated country’s level of eco nomic freedom, factors that influence it, factors that the government should address, changes that should be made, and likely outcomes.

Reflection Reflected on informa tion about country’s political and economic systems to actively participate in a class discussion about how to improve a country’s economy.

Argument Demonstrated how a country’s economy could be improved. Used evidence and rea soning to support their explanation.

Emergent (1 point)

Evaluated sources for reliable information. Researched the coun try’s economic freedom. Asked supporting ques tions about country’s political and economic systems, but these did not relate to economic freedom.

Used minimal research to explain the factors that influence country’s economic freedom. Suggested changes, but these do not appear to be based on research and are only somewhat appropriate.

Communicated coun try’s level of economic freedom, factors that influence it, and factors that the government should address.

Reflected somewhat on country’s political and economic systems to participate in a class discussion about how to improve a country’s economy.

Demonstrated some what how country’s economy could be improved. Used evi dence and reasoning to support their argument, but their argument may be unclear or somewhat illogical.

Not Present (0 points) Score

Did not research the criteria category or the country’s economic freedom. Did not ask supporting questions related to the country’s economic freedom. Did not record information or use reliable sources.

Did not use research to explain the factors that influence country’s eco nomic freedom. Did not suggest changes for the government to make, or suggested inappropriate changes.

Did not communicate country’s level of eco nomic freedom, factors that influence it, factors that the government should address, changes that should be made, and likely outcomes.

Did not reflect on infor mation about country’s political and economic systems or participate in a class discussion about how to improve a country’s economy.

Did not demonstrate country’s economy could be improved. Did not use enough evi dence and reasoning to support their argument.

Unit Introduction: How Markets Work

READING NOTES

In order to complete this project, you’ll need to learn how markets work.

In this unit, you will encounter these economic concepts. Write what you already know about the concepts below. Then, after each lesson, write what you have learned about each concept.

Concept What you know at the start of the unit What you know by the end of the unit

Demand Supply

Price controls

Perfect

Do industries always benefit from perfect competition?

Demand and Supply

What are demand and supply, and what factors influence them?

Now answer these questions.

As

Vocabulary Terms

1. Why might some students be willing to pay $10 for this product?

2. Why might some students choose not to pay even $1 for this product?

3. You have created a demand curve for the product. What happens to the quantity demanded for this product when the price goes down? When the price goes up?

PREVIEW

Copy the demand schedule

class created

notebook. If you did not create one

the

4. Most demand curves look similar to the one you created. Given this, what do you think the “law of demand” might say?

READING NOTES

Section 1

1. What two conditions must buyers meet in order for there to be demand for a good or service?

2. Create a demand schedule for yourself for a good or service you regularly consume. Include 10 different prices, in equal increments. Use the data to graph your demand curve for that good or service. Your graph should include: a title, labels for the x-axis and y-axis, a numerical range for your x-axis and y-axis, and your demand curve.

3. Does the demand curve you graphed support the law of demand? Cite and explain three reasons why the law of demand works.

Section 2

1. If only the price for a good or service changes, does the demand curve shift? Why or why not?

2. Copy the matrix heads below into your notebook. Complete a row in the matrix for each of the six demand shifters described in Section 2.

Demand Shifter

How the Demand Shifter Influences the Demand Curve

Sketch What Happens to the Demand Curve If Shifter Increases

• Name the item and identify whether your demand for it is elastic or inelastic.

• Explain why your demand is elastic or inelastic. In your explanation, include and underline at least one of the factors that influence demand elasticity.

• Draw a simple graph with a demand curve that represents the elasticity of your demand for that good or service.

Section 6

1. What is elasticity of supply?

Section 3

1. What two conditions must producers meet for there to be supply of a product?

2. Create a supply schedule for a good or service you might sell or produce. Include 10 different prices, in equal increments. Use the data to graph your supply curve for that good or service. Your graph should include: a title, labels for the x-axis and yaxis, a numerical range for your x-axis and y-axis, and your supply curve.

3. Does the supply curve you graphed support the law of supply? Explain and give two reasons why the law of supply works.

Section 4

1. If only the price for a good or service changes, does the supply curve shift? Why or why not?

2. Copy the matrix heads below into your notebook. Complete a row in the matrix for each of the six supply shifters described in Section 4.

2. Think of two examples of goods or services that are supplied, one with an elastic supply and one with an inelastic supply. For each item, do the following:

• Name the item and identify whether the supply is elastic or inelastic.

• Explain why the supply is elastic or inelastic, making sure to include and underline at least one of the factors that influence supply elasticity in your explanation.

• Draw a simple graph with a supply curve that represents the elasticity of the supply for that good or service.

PROCESSING

Find a news headline from a newspaper or Internet news site and tape it into your notebook. Then do the following:

•

Supply Shifter

How the Supply Shifter Influences the Supply Curve

Sketch What Happens to the Supply Curve If Shifter Increases

Identify a product or service that might be influenced by the news in a headline. For example, for the headline “College Grads Earn Higher Start ing Salaries than Ever Before,” a product or service that might be influenced is graduation trips to Hawaii or the Caribbean.

• Identify which curve—demand or supply—is affected by the information.

• Determine whether the curve shifts, and if so, whether it shifts to the left or to the right.

Section 5

1. What is elasticity of demand?

2. Think of three goods or services that you consume regularly. For each item, do the following:

• Draw and label a graph with a demand or supply curve for the related product, and show whether the curve shifts to the left or to the right. Below the graph, explain what happens to the curve and why, citing one of the demand or supply shifters in your answer.

Graphs for the Preview

Markets, Equilibrium, and Prices

How do you know when the price is “right”?

Vocabulary Terms

As you complete the Reading Notes, use these terms in your answers: market equilibrium equilibrium price equilibrium quantity price controls

price floor price ceiling rationing black market

Section 1

READING NOTES

1. What happens at the point where buyers and sellers agree? Use these terms in your answer: market equilibrium, equilibrium price, equilibrium quantity.

2. Why do competitive markets move toward equilibrium?

PREVIEW

Think of a product you recently purchased. In your notebook, record the name of the product and the approximate price you paid. Then, answer these questions.

1. What are some reasons you were willing to buy the product at this price?

2. What are some reasons the seller was willing to sell the product at this price?

3. Do you think you paid the “right” price for this product? Why or why not?

3. Look at the balance scale in this section, which represents equilibrium. Create your own simple metaphor illustrating how demand and supply work together to create equilibrium. Label the following on your metaphor: quantity demanded, quantity supplied, equilibrium point.

Section 2

1. Create a flowchart that shows what happens when prices are set too low.

2. Create a flowchart that shows what happens when prices are set too high.

3. Why does the time it takes to reach equilibrium vary from market to market?

Section 3

Analyze the effects of each news headline about the athletic shoe market. For each event,

• label the axes, demand curve, and supply curve.

• explain the effect of the event on the demand or supply curve for athletic shoes.

• graph the resulting change in equilibrium price and equilibrium quantity of athletic shoes.

The first headline is completed for you.

Effect of Headlines on the Athletic Shoe Market

1 Price of Rubber Increases Dramatically

2 Movie Increases Popularity of Athletic Shoes

Because of an increase in the cost of inputs, the supply curve will decrease, or shift to the left. Equilibrium price increases. Equilibrium quantity decreases.

3 Price of Sport Sandals Drops Drastically

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5 Two New Athletic Shoe Companies Enter the Market—Production Begins Today

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4 Government Sets Price Ceiling Below Equilibrium Price to Help Consumers Save Money

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6 Consumers Worry Price of Athletic Shoes May Increase Next Month

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Markets, Equilibrium, and Prices

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Analyze the effects of each news headline about events affecting a variety of markets.

Identify the market indicated in parentheses before conducting your analysis. For each event,

• label the axes, demand curve, and supply curve.

• explain the effect of the event on either the demand or the supply curve.

• graph the resulting change in equilibrium price and equilibrium quantity.

Effect of Headlines on Various Markets

7 Insects Kill Half the World’s Tomato Crop (tomato market)

8 Recession Hits—Many Consumers Lose Jobs (movie ticket sales market)

9 Price of Computer Chips Tumbles (computer market)

10 Price of Salmon Skyrockets (sea bass market)

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11 Government Places Excise Tax on Cigarettes to Discourage Smoking (cigarette market)

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13 Price of DVD Players Plummets (DVD market)

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12 Government Sets Price Floor Above Equilibrium Price to Help Farmers (milk market)

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14 New, More Efficient Assembly Line Technology Introduced (automobile market)

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Markets, Equilibrium, and Prices

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Section 4

1. Identify the four roles prices play in a modern mixed economy. For each role,

• write a one- or two-sentence summary that includes a specific example.

• create a simple symbol that illustrates your summary.

2. Explain the roles of demand and supply in changing gasoline prices after Hurricanes Katrina and Rita.

Section 5

1. Complete a table like this one about the two types of price controls discussed in the section.

Price Control Why Enacted Example(s) Economic Result

PROCESSING

Choose a product that interests you. Then, create three newspaper headlines announcing events that would affect the market for your product. One event should result in a shift in demand, one should result in a shift in supply, and one should set a price ceiling or price floor on the product. An example is given below.

• For each event, create a graph that shows the shift in the demand or supply curve and the change in equilibrium price and quantity.

• For each event, write two sentences explaining why the demand or supply curve shifted and how it affected the equilibrium price and quantity.

• Use your headlines and graphs to write a para graph answering the Essential Question, How do you know when the price is “right”?

2. Create a simple drawing illustrating the difference between a price floor and a price ceiling. Include these terms in your drawing: equilibrium price, price floor, price ceiling, shortage, surplus.

3. Explain why a government might use rationing and what some effects of rationing could be.

MARKET FOR COFFEE

If people believe that coffee promotes health, the demand curve will shift to the right due to a change in tastes and preferences. This will result in an increase in the equilibrium price and an increase in the equilibrium quantity.

Market Structures and Market Failures

What happens when markets do not work perfectly?

Vocabulary Terms

phrase to help you remember these four characteristics. For example, one phrase might be, Nobody Sleeps in Economics Class.

As you complete the Reading Notes, use these terms in your answers: market structure perfect competition monopoly oligopoly

monopolistic competition market failure externality public goods

2. Create a spoke diagram for perfect competition. Use the four main characteristics of perfect com petition as the main spokes. To each main spoke, add one or two spokes with examples or simple illustrations that represent that characteristic.

3. Make a simple sketch of a consumer and a producer. Add a thought bubble for each person that explains one of the benefits of perfect competition.

PREVIEW

Suppose you want to start a new business. Review the following scenarios and decide under which conditions you would prefer to start your business. Give at least two reasons to justify your selection.

• Open a video game store in a small town that has many other successful video game stores

• Begin the first, and only, babysitting service in your neighborhood

• Start a music store in a small town that has only two other music stores

• Create a unique clothing line that targets teenagers

READING NOTES

Section 1

1. Define the four main characteristics economists use to define market structure: number of producers, similarity of products, ease of entry, and control over prices. Then create a mnemonic

Section 2

1. What is imperfect competition?

2. Create a spoke diagram for monopoly. Use the four main characteristics of monopoly as the main spokes. To each main spoke, add one or two spokes with examples or simple illustrations that represent that characteristic.

3. Make a simple sketch of a software consumer and a software producer (other than Microsoft). Add a thought bubble for each person that explains one of the consequences of the monopoly case study of Microsoft.

Section 3

1. Create a spoke diagram for oligopoly. Use the four main characteristics of oligopoly as the main spokes. To each main spoke, add one or two spokes with examples or simple illustrations that represent that characteristic.

2. Use these terms to explain how an oligopoly can end up acting like a monopoly: price leadership, collusion, cartel.

3. Make a simple sketch of an oil consumer and an oil producer. Add a thought bubble for each person that explains one of the consequences of oligopoly.

Section 4

1. Create a spoke diagram for monopolistic competition. Use the main four characteristics of monopolistic competition as the main spokes. To each main spoke, add one or two spokes with examples or simple illustrations that represent that characteristic.

2. For each of the four factors of nonprice competition, find a print ad (newspaper, magazine, or internet) that focuses on that factor. Tape each ad into your notebook. Circle the example of the factor, and write a brief explanation of which factor is being used and how.

3. Make another simple sketch of a consumer and a producer. Add a thought bubble for each person that explains one of the consequences of monopolistic competition.

Section 5

1. Create two simple political cartoons. One should represent a positive externality and the other a negative externality. Write a short caption for each cartoon explaining what the externality is in each case.

2. Explain why both positive and negative externalities are considered market failures.

3. Use what you have learned about public and private goods to complete this table in your notebook.

Private Good Public Good

Provided by the market system?

Explain.

Excludable?

Explain.

Rival in consumption? Explain.

PROCESSING

Think of a good or service that you use and are familiar with. Choose a product that was not discussed in class or during the activity. Then answer these questions:

1. What market or industry is your good or service a part of?

2. Brainstorm how the four characteristics of market structures—number of producers, similarity of products, ease of entry, and control over prices— apply to that market or industry. Consider look ing on the internet or in print materials related to your good or service.

3. Write a paragraph explaining which market structure—perfect competition, monopoly, monopolistic competition, or oligopoly—best describes the market for your good or service. Base your explanation on your analysis from Question 2.

Economic Inquiry: Examining Perfect Competition

Economic Question: Do industries always benefit from perfect competition?

READING NOTES

Economic Question: Do industries always benefit from perfect competition?

Many economists believe that perfect competition is the most efficient market structure. Watch this video to find out more.

1. With your partner, select the topic of your report. Choose an industry that currently operates as a monopoly or oligopoly.

Describe that industry, and indicate whether it is a monopoly or oligopoly.

2. What supporting questions do you have about this industry?

Use reliable sources to answer these questions. Record your sources.

Supporting Questions Answers Sources

Advantages Disadvantages

3. What are the advantages and disadvantages of this industry operating as a monopoly or oligopoly?

Consider the perspectives of both producers and consumers.

4. If perfect competition existed in this industry, how would it affect the industry’s operations?

Consider how perfect competition would alter the current market structure’s advantages and disadvantages.

5. Write an editorial for a news site that answers the following question: Would perfect competition improve this industry?

Your editorial should explain the effects of perfect competition and include the following elements:

• a headline (title)

• an introduction paragraph that

• includes a thesis statement that clearly communicates your position

• catches the attention of readers and draws them in

• body paragraphs that

• begin with a topic sentence

• use evidence and reasoning to support your argument

• a conclusion that

• summarizes your main arguments

• restates your thesis

Write in a way that keeps your readers engaged from beginning to end.

Use this rubric to evaluate your inquiry project.

Proficient (2 points)

Research Asked thoughtful supporting questions about an industry. Evaluated and recorded information about an industry. Evaluated sources for reliable information.

Analysis Used research to determine how perfect competition would affect an industry.

Public Product Wrote a thesis statement that clearly communicated their opinion. Wrote an engaging article that explained the effects of perfect competition and used all the requested structural elements.

Reflection Reflected on research to write an article about perfect competition’s effects on an industry and to actively participate in a class discussion about whether industries always benefit from perfect competition.

Argument Used evidence and reasoning to support their argument about perfect competition’s effects on an industry and whether industries always benefit from perfect competition.

Emergent (1 point)

Asked supporting questions about an industry. Recorded information about an industry, but sources may not have been reliable.

Used minimal research to determine how perfect competition would affect an industry.

Wrote a thesis statement that communicated their opinion. Wrote an article that explained the effects of perfect competition and used some of the requested structural elements.

Not Present (0 points) Score

Did not ask supporting questions about an industry. Did not record information or use reliable sources.

Reflected somewhat on research to write an article about perfect competition’s effects on an industry and to participate in a class discussion about whether industries always benefit from perfect competition.

Used some evidence and reasoning to support their argument about perfect competition’s effects on an industry and whether industries always benefit from perfect competition.

Did not use research to determine how perfect competition would affect an industry.

Did not write a thesis statement that communicated their opinion. Did not write at an article that explained the effects of perfect competition and did not use the requested structural elements.

Did not reflect on research to write an article about perfect competition’s effects on an industry or to participate in a class discussion about whether industries always benefit from perfect competition.

Did not use enough evidence and reasoning to support their argument about perfect competition’s effects on an industry and whether industries always benefit from perfect competition.

Unit Introduction: Economic Institutions and Organizations

READING NOTES

In order to complete this project, you’ll need to learn about economic institutions and organizations.

In this unit, you will encounter these economic concepts. Write what you already know about the concepts below. Then, after each lesson, write what you have learned about each concept.

Concept What you know at the start of the unit What you know by the end of the unit characteristics of money

Federal Reserve System compound interest bond venture capital globalization wage gap collective bargaining

Economic Institutions and Organizations

Economic Question: What should you consider when starting a business?

Money, Banking, Saving, and Investing

How should you spend, save, and invest your money?

Vocabulary Terms

As you complete the Reading Notes, use these terms in your answers:

interest

PREVIEW

PREVIEW

Suppose a generous relative gave you a gift of $1,000 for your high school graduation. In a short paragraph, outline what you would do with the money and the reasoning behind your decision.

READING NOTES

Section 1

Copy the spoke diagram. Add appropriate spokes of information to each of the four categories that surround the center.

Functions of money

Characteristics of money

What makes money . . . money?

Historical types of money (include examples of each)

Money today: What counts and what doesn’t?

Section 2

1. What is the main function of banks? How do banks execute that function?

2. Rank the three types of deposits that savers make at banks from “most liquid” to “least liquid.” Also rank them from the “highest return” to “lowest return.” If you wanted to save money at your bank for a purchase you plan to make one year from now, which type of deposit would you make? Why?

3. Create a simple symbol to help explain each of the three types of loans that banks commonly make: commercial loans, consumer loans, and mortgage loans. Write one or two sentences explaining who would typically take out each type of loan and what the money would be used for.

4. Complete this simile: The Fed is to the nation’s banks as a is to a Give two reasons why your simile makes sense.

Section 3

1. List three reasons why you should save money.

2. Calculate your personal saving rate (or that of a family member, if you have no income) by using the formulas below. Is your personal savings rate closer to 1% or 10%? Why do you save so much or so little?

monthly income monthly expenses monthly savings

– = ÷ =

monthly savings monthly income personal savings rate (percentage)

3. Create a simple diagram to represent the three sources of money that most people use to fund retirement. Annotate your diagram by recording at least two details about each type of retirement plan.

4. When creating a budget, what can you do to make sure you are a successful saver?

Section 4

1. In your own words, explain how compounding works. According to the rule of 72, if you deposit $100 in an account that pays 9% compound interest, how long will it take that initial deposit to reach $200?

2. Create a matrix like the one below. For each type of investment, record this information:

• Is the risk high, moderate, or low?

• Is the return high, moderate, or low?

• How does this type of investment work? Explain in one or two sentences.

Investment Risk Return How It Works

Government Bonds

Corporate Bonds

Stocks

Mutual Funds

3. Create a simple cartoon to illustrate the ideas of diversification and asset allocation. Your cartoon might include thought or speech bubbles, labels, and a caption.

PROCESSING

Design a trifold financial advising brochure that you, as a financial adviser, might distribute to prospective clients. Fold a sheet of paper in thirds just as you would fold a letter to fit into an envelope. Then create a brochure that includes

• a front cover with an appropriate title, graphic, and your name.

• an explanation of why spending, saving, and investing are important.

• at least three tips on spending.

• at least two tips on saving and a brief explanation of available savings options.

• at least two tips on investing and a brief explanation of available investment options.

• any other creative touches or information that might be of value to your clients.

Money, Banking, Saving, and

How do entrepreneurs use their resources to start businesses?

Vocabulary Terms

As you complete the Reading Notes, use these terms in your answers:

proprietorship liability

multinational corporation business franchise cooperative

organization

Entrepreneurs and Business Organizations PREVIEW

Examine the timeline, which shows key events in the development of the internet. Then answer these questions.

• What interesting details do you see?

• What other innovations to the internet would you add to this timeline?

• What is the next innovation that could become a new business?

• What resources would an entrepreneur need in order to start this new business?

• What would be the risks of starting this new busi ness? What might be its rewards?

1982 The term “internet” is first used.

1989 America Online service is launched for Apple II and Macintosh computers.

1994 The White House goes online. President Bill Clinton and Vice President Al Gore get e-mail addresses.

David Filo and Jerry Yang start Yahoo! to keep track of their favorite internet sites.

1995 Microsoft releases its internet Explorer Web-browsing software.

1996 Michael Dell introduces www.dell.com, a Web site where people can buy customized computers online.

2001 Wikipedia, an online encyclopedia that can be edited by anyone, is launched.

2005 Chad Hurley, Steve Chen, and Jawed Karim start YouTube, a Web site where people upload and share video clips online.

2010 Instagram, a social media site where users can share images and videos, is started.

2015 Apple Pay, which allows users to purchase items with their phones, is launched.

READING NOTES

Section 1

1. Select one of the entrepreneurs described in this section. How does this individual demonstrate the characteristics of a successful entrepreneur?

2. Create a T-chart with risks of starting a new business on one side and rewards on the other side. Then explain how these risks and rewards might influence the decisions entrepreneurs make.

Sections 2 to 4

As you read each section, record information for each type of business organization in a table like this one.

Types of Business Organizations

Section 5

Create an illustrated dictionary entry for each of these terms: business franchise, cooperative, nonprofit organization. For each dictionary entry,

• create a symbol or an icon to represent the term.

• write a definition of the term in your own words.

• write a sentence using the term.

• provide an example for the term.

As part of each entry, explain why entrepreneurs might choose this model of business organization.

Section 6

1. What is the difference between the rights of businesses and the responsibilities of businesses? Support your answer using one or more examples of each.

2. Do you believe a business should take responsibil ity for the impact of its actions on society? Why or why not?

PROCESSING

To examine the challenges and rewards of being an entrepreneur, you will speak with someone in your community who owns a business. Refer to the instructions on ”Business Owner Interview” to conduct your interview. Record the interviewee’s answers in your notebook.

Business Owner Interview

You will conduct an interview of a local business owner. Your interviewee must be someone who owns or has owned a business. You might try to identify someone who operates a home business, works as part of a partnership, or runs a business that is part of a franchise.

Conducting the Interview

Follow these tips to conduct the interview.

• Always be polite. Be on time, say please and thank you, and address the interviewee formally (using Mr., Ms., or Mrs.).

• Begin the interview by introducing yourself. Describe the purpose of the interview.

• Allow enough time for the interviewee to answer each question. Be patient when answers take a long time. If your interviewee strays from the topic, try to refocus him or her by asking one of your prepared questions.

• Send a thank-you note to your interviewee after the interview.

Questions for the Interview

Use the following questions to guide your interview. For a more personal touch, you may want to write additional follow-up questions. Record the interviewee’s answers to all of your questions in your notebook.

• What does your business do (produce a good, provide a service)?

• Why did you start this business? How did you decide that the rewards of starting and operating this business outweighed the risks?

• How are you organized (sole proprietorship, partnership, franchise, cooperative)? Why did you select this form of ownership?

• What is most rewarding about operating your own business? What is most challenging?

• What advice do you have for others who want to own and operate a business?

Human Capital and the Labor Market

Why is it important to develop your human capital?

Vocabulary Terms

As you complete the Reading Notes, use these terms in your answers: labor force offshoring equilibrium wage fringe benefits

wage gap affirmative action collective bargaining right-to-work law PREVIEW

Review “Top Ten” Job Lists. Then, answer these questions:

• What interesting details do you notice about the job lists?

• Why is each list different? Which list appeals to you the most? What other factors will influence the type of job or career you pursue?

• Why would someone create a set of lists like this? Why is it important to think about your career options now?

• Choose the job that most interests you from the lists. What actions could you take to increase your chances of having that job one day?

Section 1

READING NOTES

1. Write a blog post for teenagers titled, “What YOU Need to Know About Today’s Labor Market!” In your blog post, identify and summarize the five labor-market trends discussed in the section. De sign your summaries to appeal to a teen audience.

2. Explain which labor-market trend you think will have the greatest impact on your future.

Section 2

1. Copy the diagram below. From left to right, label the steps with the four skill levels of jobs defined in this section. In each step, describe that skill level and give examples of jobs. The first step is completed for you.

2. Explain how the demand for labor and the supply of labor lead to an equilibrium wage.

3. Copy the spoke diagram below. On each spoke, describe one of the factors that affect wages other than the demand and supply of labor. Give an example of each factor.

Section 4

Complete this matrix in your notebook.

Origins of the Union Movement

Golden Age of Labor Unions

Modern Union Movement

Other Factors that Affect Wages

4. Define wage gap. Explain why economists think discrimination in the workplace will decrease over time. What are some ways the U.S. government has addressed discrimination in the workplace?

Section 3

Create a simple cartoon with five panels to show how a fictional character might build his or her human capital. In the first panel, introduce your character and show his or her aptitudes, interests, and aspirations. In each of the four remaining panels, make a sketch and write a caption that explains actions the character can take to build his or her human capital. Each panel should connect to one of the methods of building human capital discussed in the section.

Time Period Union Actions and Successes Union Setbacks PROCESSING

Suppose you want to apply for the job that interested you in the Preview. Describe two actions you can take today and two actions you can take in the next ten years to develop your human capital to become qualified for this job. For each action you describe, identify which of the methods of developing human capital you would be investing in.

Human Capital and the Labor Market

“Top Ten“ Job Lists

The Top Ten Jobs for People Who . . .

Love People

Teacher

Human resources manager

counselor

Career counselor

Psychologist

Social worker

Child care worker

Physical therapist

Fundraiser

Hotel manager

Like to Work with Their Hands

Carpenter

Auto mechanic

Dentist

Baseball player

Farmer

designer

Physician

Avionics technician

Chef

Have Type-A (competitive) Personalities

Attorney

Investment banker

Management consultant

Pilot

Military officer

Architect

Systems analyst

Stockbroker

Can’t Stand Wearing Business Attire

Farmer

Artist

Firefighter

Actor

Writer

Coach

Computer programmer

Zoologist

Anthropologist

Child care worker

Long for Unpredictable Days

Small business owner

FBI agent

Police officer

Restaurateur

Firefighter

Musician

Advertising executive

Auto salesperson

Promoter

Agent

Economic Inquiry: Creating a Business Plan

Economic Question: What should you consider when starting a business?

4. Create a business plan for your product.

READING NOTES

Economic Question: What should you consider when starting a business?

To start a business, you need more than a good or service to sell. You also need to put together a busi ness plan. Watch this video to find out more.

1. You are starting a business and have the opportunity to present your idea to potential investors.

Brainstorm a good or service for your business to sell.

2. Get into groups of four. Present your product to your new business partners.

As a group, decide which group member’s product you should pitch to investors. In your discussion, consider issues such as the product’s target market, its likely competitors, and the costs to produce it.

Which good or service have you selected?

3. What supporting questions do you have about your product’s industry?

Use reliable sources to answer these questions and conduct market research. Record your sources.

Supporting Questions Answers Sources

Your plan should include a mission statement for your business, strategic objectives, funding needs (the amount needed and how it will be spent), key markets and price to consumers, and distribution channels.

Use evidence and reasoning to support your plan.

5. Pitch your idea to potential investors. Use your business plan as the basis for a 2–3-minute presentation to introduce your product.

The information in your business plan should be part of your presentation. Also, your presentation should

• clearly explain how your product works

• highlight your product’s benefits and unique features

• use visual elements such as a prototype or design sketches

• distinguish your product from likely competitors

• hold the investors’ attention

Be prepared to answer investors’ questions about your product and business plan.

The investors will decide whether to provide funding at the end of your presentation.

6. Based on the presentations and the investors’ feedback, what do you think makes a good business plan?

7. Revise your business plan so that it meets your criteria for a good business plan.

Use this rubric to evaluate your inquiry project.

Proficient (2 points)

Research Asked thoughtful supporting questions about product’s industry. Evaluated and recorded information regarding product’s industry. Evaluated sources for reliable information.

Analysis Used research to develop business plan. Determined criteria for a good business plan.

Public Product

Created an organized business plan that included all requested information. Gave an engaging presentation that featured visual elements and explained how the product works.

Reflection Reflected on information about the product’s industry to write a business plan and to pitch to investors. Reflected on presentations to actively participate in a class discussion about what makes a good business plan.

Explanation Used evidence and reasoning to support their business plan and presentation. Clearly explained their business plan and the features of their product.

Emergent (1 point)

Asked supporting questions about product’s industry but these did not address information needed for business plan. Recorded information regarding product’s industry, but sources may not have been reliable.

Used minimal research to develop business plan. Suggested additional criteria to include in a business plan.

Created a somewhat organized business plan that included some requested information. Gave a presentation that featured visual elements and explained how the product works.

Reflected somewhat on information about the product’s industry to write a business plan and to pitch to investors. Reflected somewhat on presentations to participate in a class discussion about what makes a good business plan.

Used some evidence and reasoning to support their business plan and presentation. Explained their business plan and the features of their product.

Not Present (0 points) Score

Did not ask supporting questions about product’s industry. Did not record information or use reliable sources.

Did not use research to develop business plan. Did not determine criteria for a good business plan.

Created a disorganized business plan that did not include the requested information. Gave a presentation without visual elements or an explanation of how the product works.

Did not reflect on information about the product’s industry to write a business plan or to pitch to investors. Did not reflect on presentations to participate in a class discussion about what makes a good business plan.

Did not use enough evidence and reasoning to support their business plan and presentation. Did not explain their business plan or the features of their product.

Unit Introduction: Economics of the Public Sector

Economic Question: How would a sugary drink tax affect your community?

READING NOTES

In order to complete this project, you’ll need to learn about the economic roles of the U.S. government and taxes and taxation.

In this unit, you will encounter these economic concepts. Write what you already know about the concepts below. Then, after each lesson, write what you have learned about each concept.

Concept

Property rights

What you knew at the start of the unit

What you know by the end of the unit

Tragedy of the commons

Income distribution

Tax equity

Proportional, progres sive, and regressive tax structures

Federal, state, and local taxes

Government and the Economy

How should the U.S. government carry out its economic roles?

Vocabulary Terms

As you complete the Reading Notes, use these terms in your answers: regulation eminent domain regulatory agency merger

deregulation common resource government failure poverty rate

Role of Government Summary Example

Protecting property rights

Maintaining competition

Protecting consumers, savers, and investors

PREVIEW

Write these three statements in your notebook. Then, write a sentence or two explaining whether you strongly agree, somewhat agree, somewhat disagree, or strongly disagree with each statement.

1. The government should increase taxes to expand programs for the elderly.

2. The government should ease up on regulations protecting the environment.

3. The government should break up existing monopolies.

READING NOTES

Create the matrix at the upper right in your notebook. For each role of government you read about, you will write a summary, and record at least one example of how the government carries out the role.

Protecting workers

Addressing externalities

Providing public goods

Promoting economic stability

Redistribut ing income

Section 1

1. Complete the entries in your matrix for “Protecting property rights.”

2. What did economist Charles Wheelan mean when he said, “Good government makes a market economy possible. Period. And bad government, or no government, dashes capitalism against the rocks.”? Do you agree or disagree? Why?

3. A pictoword is a symbolic representation of a word that shows its meaning. Create a pictoword for the term eminent domain.

Section 2

1. Complete the entries in your matrix for “Maintaining competition,” “Protecting consumers, savers, and investors,” and “Protecting workers.”

2. Create an analogy that assesses government regulation in the economy by completing this statement: Government regulation of the economy is like . . . Use one of these analogies, or create your own:

• a referee who makes sure everyone is playing by the rules.

• an overbearing parent who monitors your every activity.

• a dentist who cleans your teeth on a regular basis to prevent cavities.

• an ambulance worker who responds to emergency situations.

3. Create a pictoword for the term deregulation.

Section 3

1. Complete the entries in your matrix for “Addressing externalities” and “Providing public goods.”

2. Provide an example of a market-based policy. Explain why economists generally prefer marketbased policies to command-and-control policies.

3. Think of a tragedy of the commons (or threatened common resource) in your community or state, such as a polluted lake, a filthy public park, or a congested road. Describe the situation, and explain what the government might do to preserve the resource.

4. Create a pictoword for the term government failure Your pictoword should illustrate one of the reasons economists cite for government failure.

Section 4

1. Complete the entries in your matrix for “Promoting economic stability” and “Redistributing income.”

2. Create a flowchart showing how an economic stimulus package might promote economic stability. A sample flowchart has been started for you.

Government issues economic stimulus package.

Individual taxpayers receive tax rebate.

3. Examine the Key Concept on “Income Distribution.” What two things surprise you about these data?

4. Explain whether you agree or disagree with this statement: Means-tested programs promote poverty.

PROCESSING

Choose one of these two options.

Option A: Identify a current or proposed government intervention in the economy. For example, you might choose a tax increase, a public policy to address an externality, the proposed privatization of a public good, or a recent eminent domain case. Determine which role of government is reflected in this intervention. Then complete these tasks:

• Draw a political cartoon expressing your position on this question: How well is the government carrying out its role in this case?

• Describe what is happening in the cartoon. Identify which role of government it represents.

• Explain your position on this question: How well is the government carrying out its economic role in this case?

Option B: Find a political cartoon in a newspaper or online about a current government intervention in the economy. Tape the cartoon in your notebook. Then complete these tasks:

• Describe what is happening in the cartoon. Identify which role of government is represented.

• Explain what the cartoonist is saying about how the government is carrying out its role in this case.

• Explain whether you agree or disagree with the cartoon ist about how the government is carrying out its role.

Taxes and Taxation

Who and what should be taxed?

Vocabulary Terms

3. Americans should only pay taxes to the state instead of to both the state and federal government.

proportional tax progressive tax regressive tax

As you complete the Reading Notes, use these terms in your answers: tax equity tax incidence deadweight loss tax rate

PREVIEW

Write the following four statements about taxes in your notebook. Then, record the answer that best represents your views on each.

1. Businesses that make more money should be taxed at a higher rate than businesses that make less money. a. completely agree b. mostly agree c. mostly disagree d. completely disagree

2. The government should tax goods that harm people or the environment, such as alcohol or tobacco.

a. completely agree b. mostly agree c. mostly disagree d. completely disagree

a. completely agree b. mostly agree c. mostly disagree d. completely disagree

4. Tickets to concerts, sporting events, and other forms of entertainment should be taxed. a. completely agree b. mostly agree c. mostly disagree d. completely disagree

READING NOTES

Section 1

1. Explain what Supreme Court justice Oliver Wendell Holmes Jr. meant when he said, “Taxation is the price we pay for civilization.” Do you agree with him? Why or why not?

2. Draw a symbol depicting each of Adam Smith’s maxims. Next to each symbol, describe the maxim in your own words.

3. Which of these two approaches to tax equity do you find fairer: the ability-to-pay principle or the benefits-received principle? Why?

4. Create a simple flowchart showing how a tax can result in a deadweight loss. Create your own example or use one from the text. A sample flowchart has been started for you.

A worker is offered a job with overtime.

Section 3

1. Create pictowords for mandatory spending and discretionary spending.

2. Answer these questions about state and local revenue sources and expenditures shown in Figure 4C.

a. What are two interesting details about the data?

b. From what three sources do state and local governments get most of their revenue? What are their top three expenditures?

c. For which categories do you think state and local governments should spend more? Less? Why?

PROCESSING

Assume your town needs to raise revenue to build a new fire station. The mayor has asked residents to e-mail their positions on who and what should be taxed to pay for the new station. Write an e-mail that is at least three paragraphs long and that includes

Taxes take much of the added income.

• the tax base that should be targeted and why.

• the tax structure that should be used and why.

Section 2

Copy and complete this table. For each tax listed, identify the tax base—personal income, good or service, or piece of property. Also identify the tax structure—proportional, progressive, or regressive.

Finally, explain whether you think each tax is fair.

Tax Tax Base

Income tax with a marginal tax rate

Social Security tax

Home property tax

5-cents-per-dollar sales tax

Corporate income tax

Tax on jewelry

Park entry fee

Estate tax

• an example of a tax that would meet these two criteria.

Tax Structure Is this tax fair? Explain.

Economic Inquiry: Investigating the Impact of Excise Taxes

Economic Question: How would a sugary drink tax affect your community?

READING NOTES

Economic Question: How would a sugary drink tax affect your community?

A new measure is up for debate in your city! Your city wants to introduce a 2-cent-per-ounce tax on sugary drinks. Watch the video online to find out more.

1. What are some supporting questions that can help answer the Economic Question?

In your groups, discuss what possible sources you can use to find answers to your questions. Talk about the reliability of each source. Then, when you are ready, research the answers to your questions. Record your sources.

Supporting Questions Answers Sources

2. What are the pros and cons of excise taxes in your community? Use the information you gathered and any additional research to complete the pros and cons chart.

Pros Cons

3. Take a stance on the sugary drink tax in your community! Does your committee recommend the bill? Explain your answer.

4. Build an argument to answer the question: How would a sugary drink tax affect your community? Use evidence and reasoning to support your answer.

5. Take informed action. Prepare a script to present your recommendation to the city council. The presentation should:

• Clearly state your stance.

• Present pros and cons to excise taxes.

• Explain your reasoning on your stance.

Use this rubric to evaluate your inquiry project.

Proficient (2 points)

Research Asked thoughtful supporting questions about the sugary drink tax. Evaluated research and recorded information relevant to their questions. Evaluated and cited sources for reliable information.

Analysis Conducted a costbenefit analysis of the sugary drink tax with the pros and cons chart.

Emergent (1 point)

Asked supporting questions, but questions may not be relevant to the sugary drink tax. Recorded information to answer the supporting questions. Cited sources, but sources may not be reliable.

Conducted a costbenefit analysis of the sugary drink tax with the pros and cons chart, but chart has only one or two items listed on each side.

Not Present (0 points) Score

Did not ask supporting questions related to the sugary drink tax. Did not record information nor use reliable sources.

Argument Took a stance on Measure Z, and used evidence and reasoning to support their answer.

Took a stance on Measure Z. Used evidence and reasoning to support their answer, but argument may be unclear or somewhat illogical.

Did not conduct a costbenefit analysis of the sugary drink tax with the pros and cons chart.

Did not take a stance on Measure Z, or argument did not use enough evidence and reasoning to support the claim.

Presentation Spoke loudly, and clearly articulated the main points of the argument. The argument was easy to follow and convincing.

Spoke loudly most of the time. The argument was clear but not easy to follow nor convincing.

Mumbled or spoke too softly. The argument was hard to follow and unclear.

Impact

Excise Taxes

Unit Introduction: Measuring and Managing the Economy

READING NOTES

In order to complete this project, you’ll need to learn how the government determines the health of the economy and manages it through fiscal and monetary policy.

In this unit, you will encounter these economic concepts. Write what you already know about the concepts below. Then, after each lesson, write what you have learned about each concept.

Concept

Real GDP

Involuntary part-time worker

What you know at the start of the unit

What you know by the end of the unit

Inflation rate

Nominal wages

Business cycle

Fiscal policy

Keynesian economics

Open-market operations

Managing

Economy

Economic Question: What can the government do to support the economy?

Measuring the Economy

How do economists measure a nation’s economic health?

Vocabulary Terms

As you complete the Reading Notes, use these terms in your answers: inflation economic indicators

gross domestic product (GDP) unemployment rate

inflation rate consumer price index (CPI) business cycle recession PREVIEW

PREVIEW

Read the historical letter reprinted on Letter from a Young Woman. Then answer the questions that follow.

• What does this letter reveal about the young woman’s life?

• During what time period was this letter written? How do you know?

• Based on this letter, what do you think was happening to consumer spending and business during the Great Depression? To people’s jobs? To prices and wages?

• After reading this letter, what details can you share about the health of the U.S. economy during the Great Depression?

Section 1

READING NOTES

1. Give an example of an economic activity included in GDP, and explain why it is included. Give an example of an economic activity not included in GDP, and explain why it is not included.

2. Create a drawing that illustrates how to calculate GDP. Represent each component of the formula with an illustration, a label, and a definition.

3. Complete a table like the one below. Then answer these questions: Which of these measures would an economist use to compare GDP from various time periods, and why? Which measure would an economist use to compare the GDP of various countries, and why?

Definition How is it measured?

Nominal GDP

Real GDP

Per capita GDP

4. Do you think GDP is a good measure of economic health? Why or why not?

Section 2

1. Create a drawing that illustrates how to calculate the unemployment rate. Represent each compo nent of the formula with an illustration, a label, and a definition.

2. Complete a table like the one below. Then answer these questions: Which type of unemployment do you think is most associated with an unhealthy economy? Why? Does an economy with full employment have any of these types of unemploy ment? Why or why not?

Type of Unemployment Definition Example

6. Do you think the inflation rate is a good measure of economic health? Why or why not?

Section 4

1. Create a drawing that illustrates how the business cycle works. Represent each phase of the cycle with

an illustration, a label, and a definition.

2. Complete a table like the one below. Describe the general behavior of the three key indicators dur ing each phase.

Real GDP Unemployment Rate Inflation Rate

Expansion Contraction

3. Do you think the unemployment rate is a good measure of economic health? Why or why not?

Section 3

1. Create a drawing that illustrates how to calculate the inflation rate using the consumer price index. Define and include one or more symbols to repre sent the CPI.

2. Complete a table like the one below. Then answer this question: How do economists use this infor mation to determine whether higher prices mean that things cost more than they used to?

Definition How is it measured?

Nominal cost of living

Real cost of living

Nominal wages

Real wages

3. A graphic organizer is a diagram for visually organizing and recording information about a particular subject. Design a graphic organizer for recording notes about the three types of inflation. For each type of inflation, include a definition, an example, and a summary of its effects.

4. What are the main causes of inflation?

5. Draw a simple flowchart to show how the wageprice spiral contributes to the inflation rate.

3. Complete a T-chart with the heads below. Identify five or more items for each side.

Causes and Characteristics of an Expanding Economy

Causes and Characteristics of a Contracting Economy

4. Why might an economy stop expanding and start contracting?

5. What is the difference between a recession and a depression?

PROCESSING

You are an analyst writing a column on current economic conditions for a national U.S. newspaper. Your column should clearly answer this question: What do key indicators reveal about the health of the current U.S. economy?

In your column, be sure to include

• recent data on gross domestic product, unemploy ment, and inflation.

• an explanation of what these key indicators reveal about the health of the economy.

• a forecast on whether the U.S. economy is in a contraction or an expansion phase.

• two or more visuals (graphs, tables, drawings, or photographs) related to your column.

Letter from a Young Woman

Greensboro, N.C. February 12, 1938

Dear Mrs. Roosevelt,

On January 1st, I was layed off from my work leaving my brother the wholesupport of our family. Just recently he was cut down to 3 days a week with acut in salary. With seven of us in the family it is just about impossible for us tolive on this amount . . .

I am 18 years of age the oldest girl in the family, and it just seems impos-sible for me to get a job any where. I have been to Mills, Stores and Firms of allsorts. I am willing and able to work. Can furnish excellent references but at thistime of the year it just seems impossible to find work.

We are so in debt and each week the bills are piling higher and higher that itseems as if there was no way out.

We must make a payment on our furniture bill, and if it isn’t paid soonthey will be out any day for our furniture. And of top of this we are behind in ourrent.

It would be a big help if we could get some of our bills paid on as they arealready impatient for their money.

If you could help us out with from $35.00 to $50.00 I believe we would bethe happiest family in the world . . .

Just as soon as I get back to work and the family is on their feet again Iwill pay you back as much a week as possible until your kind favor has been fullyrepaid.

My Father’s work has been very poor for the past year, he is an advertisingsalesman, and his work right now is practically nothing . . .

Please grant me this favor and I will ever be,

Gratefully yours

How do policymakers use fiscal and monetary policy to stabilize the economy?

Vocabulary Terms

As you complete the Reading Notes, use these terms in your answers: fiscal policy monetary policy deficit spending stagflation

Examine the list of possible actions that policymakers could take to help the failing economy. Predict what you think the effect of each possible action might be. Choose from these effects:

Effect A

multiplier effect

easy-money policy tight-money policy crowding-out effect

Stimulate the economy

Fiscal and Monetary Policy PREVIEW

The year is 1974. The U.S. economy is in the middle of a recession. Real gross domestic product (GDP) declined during three of the past four quarters. In just one year, household consumption dropped by more than $40 billion. There are more than 2 million people without jobs, and there is no relief in sight. Time magazine reported,

Jobs are harder and harder to come by. “When something opens up, we all descend like locusts on the company that’s hiring,” says Bostonian Judy Knight, who lost her job as a staff producer with Atlantic Records last December. “The company ends up getting the pick of the best.” When 100 jobs opened recently for firemen in Los Angeles, 1,000 applicants showed up.

Effect B Neither stimulate nor slow down the economy

Effect C Slow down the economy

Possible Actions Policymakers Could Take

1. Increase spending on government programs, such as Social Security and food stamps.

2. Increase taxes on individuals and corporations.

3. Increase the amount of money banks are required to hold in reserve.

4. Increase the interest rate at which banks can borrow money from the Federal Reserve.

5. Increase the purchasing of government bonds by the Federal Reserve.

READING NOTES

Section 1

1. Draw a T-chart to compare and contrast the ideas of John Maynard Keynes and Milton Friedman. Title the left side “Keynesian Economics” and the right side “Monetarism.”

In each column, note the main details of each idea. Include information on beliefs about the causes of recession and the role of the government in the economy. Provide a historical example of when each idea was applied by the government.

2. How do the ideas of John Maynard Keynes and Milton Friedman differ from those of classical economics?

Section 2

1. A graphic organizer is a diagram for visually organizing and recording information about a particular subject. Design a graphic organizer that explains how the government can use expansionary and contractionary fiscal policy to respond to problems in the economy. On your graphic organizer, describe the two policies, their goals, and their economic impact.

2. Create a Venn diagram like the one below. Record the main ideas of demand-side and supply-side economics. In the overlapping section, identify at least one idea that relates to both schools of thought.

Demand-Side Economics

Supply-Side Economics

4. What is the federal funds rate, and how is it related to monetary policy? Why does the Federal Reserve focus on targeting the federal funds rate?

Section 4

1. Design a one-page flyer summarizing the limitations of fiscal and monetary policy in stabilizing the economy. Your flyer should describe each of the three limitations, explain how each of them challenges policymakers, and include an appropriate visual for each.

2. With which of the concerns about the national debt do you most agree and why? Disagree and why?

Explain why you think teenagers should or should not be concerned about the national debt.

PROCESSING

3. Using words, illustrations, or both, explain how $1,000 spent by the government can have a multiplying effect.

4. What are automatic stabilizers? How do they help counter the ups and downs of the business cycle?

Section 3

1. Create a graphic organizer that explains how the government can use a tight-money policy and an easy-money policy to respond to problems in the economy. On your graphic organizer, describe the policies, their goals, and their economic impact.

2. Using words, drawings, or both, explain how banks create money from a $1,000 deposit.

3. Complete a matrix like the one below, answering the questions for each monetary policy tool described in this section.

Tool

How is this used as part of easy-money policy?

How is this used as part of tight-money policy?

Find and read a news article that describes a recent fiscal or monetary policy action taken to stabilize the economy. Determine whether you think this policy will be effective in achieving its purpose. Express your opinion and your reasoning by doing one of the following or by designing your own option:

• Compose a song.

• Create a short video.

• Design a magazine cover.

• Draw a political cartoon.

• Write an editorial.

In your response, summarize the details and goal(s) of the policy action. Identify the action as either fiscal or monetary, describe its likely outcome, and explain whether you think it will be effective.

How often does the Fed use this tool?

Why?

Economic Inquiry: Growing the Economy

Economic Question: What can the government do to support the economy?

READING NOTES

Economic Question: What can the government do to support the economy?

The government’s monetary and fiscal policy affects the state of the economy. Watch this video to find out more.

1. Get into groups of four. Write a hypothesis to answer the following question: What is the present state of the economy?

2. Research the following economic indicators to determine whether your hypothesis is correct.

Indicator Current Trend Sources

GDP

Unemploy ment rate Federal deficit National debt CPI PPI

3. Describe the current state of the economy. Is your hypothesis correct? Explain the similarities and differences between your hypothesis and the state of the economy.

Use evidence and reasoning to support your answer.

4. Which indicator were you assigned? What should be the government’s goal for this indicator in order to support the economy?

5. How can fiscal and/or monetary policy be implemented to support your goal? Conduct research.

6. Propose a plan for the government to implement in order to reach the goal for your indicator.

Use evidence and reasoning to support your plan.

7. Present your findings to the class. In a 3–5-minute multimedia presentation

• name your economic indicator

• describe the current state of your economic indicator

• identify what the government’s goal for the indicator should be

• discuss fiscal and/or monetary policy that should be implemented to support this goal

Use evidence and reasoning to support your findings.

Be prepared to answer questions from the class about your policy suggestions.

Use this rubric to evaluate your inquiry project.

Proficient (2 points)

Research Evaluated and recorded information regarding economic indicators. Evaluated sources for reliable information.

Analysis Used research to determine whether economic hypothesis was correct. Devised government policy to achieve economic goal.

Public Product Gave multimedia presentation that met all the criteria. Appropriately answered audience questions.

Reflection Reflected on information about an economic indicator to write a government policy to achieve economic goal. Reflected on presentations to explain what the government can do to support the economy.

Explanation Used evidence and reasoning to explain the state of the economy in general and relative to hypothesis. Used evidence and reasoning to support suggested government policy.

Emergent (1 point)

Recorded information regarding economic indicators, but sources may not have been reliable.

Used minimal research to determine whether economic hypothesis was correct. Devised government policy that would not likely achieve economic goal.

Gave presentation that met some of the criteria. Answered audience questions.

Reflected somewhat on information about an economic indicator to write a government policy to achieve economic goal. Reflected somewhat on presentations to explain what the government can do to support the economy.

Used some evidence and reasoning to explain the state of the economy in general and relative to hypothesis. Used some evidence and reasoning to support suggested government policy.

Not Present (0 points) Score

Did not record information regarding economic indicators or use reliable sources.

Did not use research to determine whether economic hypothesis was correct. Did not devise government policy to achieve economic goal.

Gave a presentation that did not meet the criteria. Did not answer audience questions.

Did not reflect on information about an economic indicator to write a government policy to achieve economic goal. Did not reflect on presentations to participate to explain what the government can do to support the economy.

Did not use evidence and reasoning to explain the state of the economy in general and relative to hypothesis. Did not use evidence and reasoning to support suggested government policy.

Unit Introduction: Globalization and the Global Economy

READING NOTES

In order to complete this project, you’ll need to learn about the global economy and the effects of globalization.

In this unit, you will encounter these economic concepts. Write what you already know about the concepts below. Then, after each lesson, write what you have learned about each concept.

Concept What you know at the start of the unit What you know by the end of the unit

Global economy

Protectionism

Exchange rate

Trade deficit

Nongovernmental organization

Economic development

Cultural imperialism

Globalization and the Global Economy

Economic Question: Is globalization good or bad?

The United States and the Global Economy

How do countries conduct trade in the global economy?

Vocabulary Terms

As you complete the Reading Notes, use these terms in your answers:

global economy imports exports free trade

protectionism protective tariff foreign exchange balance of trade

PREVIEW

On World Map, complete the following:

• Identify the countries of origin of at least five items in your possession such as shoes, a shirt, a backpack, a cell phone, and a calculator.

• For each item, label the country of origin on the map. You can use the world map in the back of your book to help identify the countries of origin.

• Draw an arrow from the country to your commu nity and label the arrow with the name of the item.

When you are done, answer these questions:

1. What surprises you about your map?

2. Do you think the United States imports or exports more goods? Why might this be the case?

3. How does global trade affect your life?

READING NOTES

Section 1

1. Create a cause-and-effect chart to show why global trade has increased in recent decades.

Causes 1. 2. 3.

Effect Global trade has increased.

2. Determine whether the following statement is true or false. If it is false, rewrite it to make a true statement. A country benefits when it specializes in producing the goods for which it holds an absolute advantage.

3. Describe an example of a differentiated product, such as a car from the United States and a car from Japan. Use sketches if they help you explain.

Section 2

1. Examine the graphs in Figure 15.2A.

• What does each graph show?

• What are the top two categories in each graph?

• Why might the United States import and ex port the same types of items?

2. Create a chart showing the benefits of global trade for U.S. consumers. An example is given for you.

Global trade benefits U.S. consumers by . . .

giving them access to a variety of goods and services.

Section 3

1. For each of the four trade barriers described in this section, do the following:

• Provide a definition and explain why a country might use the trade barrier.

• Draw a symbol.

• Give a current or historical example of the trade barrier in practice.

2. Copy and complete the following dialogue about free trade between a protectionist (P) and an economist (E) who is not a protectionist.

P: Free trade destroys jobs.

E: Not necessarily, because . . .

P: Trade barriers are needed to protect infant industries.

E: I disagree, because . . .

P: We need tariffs to make sure countries enforce environmental and labor standards.

E: That’s not true, because . . .

Section 4

1. Determine whether the U.S. exchange rate will appreciate or depreciate (relative to another cur rency) in the following situations. Explain your reasoning. An example is provided for you.

Example: Americans buy more goods and services from Japan. The U.S. dollar will depreciate relative to the Japanese currency. As Americans buy more Japanese currency to purchase their goods, the price of Japanese currency will increase and the dollar will be worth less.

a. Mexicans buy fewer goods and services from the United States.

b. Americans buy fewer goods and services from Jordan.

2. Identify a pro and a con of floating exchange rates. Do the same for fixed exchange rates.

3. Identify which item (A, B, or C) shows an equal balance of trade, which shows a trade surplus, and which shows a trade deficit.

4. Write a paragraph explaining whether you think a large U.S. trade deficit poses a problem for the United States. Include at least one reference to an economist cited in the text.

PROCESSING

Create an international charter for global trade outlining how countries should conduct trade in the global economy.

• Begin with this statement: We, the undersigned, do hereby agree to the following terms and conditions to promote global trade in the global economy.

• Include at least four sections in your charter out lining these things:

The goals of international trade.

If, and under what circumstances, trade barriers are appropriate. Reference specific trade barriers such as protective tariffs, import quotas, trade embargoes, and VERs.

Whether countries should have to adhere to specific environmental and labor laws. How countries should resolve trade disputes.

• Choose five to ten countries to sign your charter. List them at the end of the document.

• Create an emblem, or simple illustration, highlighting the purpose of your charter. Place the emblem anywhere on your charter.

A sample charter is shown below.

We, the undersigned, do hereby agree to the following terms and conditions to promote global trade in the global economy.

Section 1: We believe the goal of international trade is . . .

Section 2: We believe there are times when trade barriers are important. For instance, . . .

Section 3: We believe countries should . . .

Section 4: When countries have a trade dispute, we believe they should . . .

Signed,

World Map

The Costs and Benefits of Globalization

Do the benefits of globalization outweigh the costs?

Vocabulary Terms

As you complete the Reading Notes, use these terms in your answers: foreign debt debt forgiveness capital flow economic development

developed country developing country least developed country extreme poverty

PREVIEW

Read the lyrics to “Globalization Blues.” Then, answer these questions.

• What mood or emotions does the song evoke?

• Underline phrases in the song that might refer to the effects of globalization.

• Is the songwriter a proponent or a critic of globalization? Justify your answer with specific lyrics from the song.

• Based on the song and your previous knowledge, how might you define globalization?

• Many economists believe the benefits of globalization outweigh the costs. Based on what you have learned in previous chapters, what might be some of the benefits of globalization in the areas of economic development, the environment, and culture?

Globalization Blues

Ray Korona, 2002

You can’t hide in your bed;

You can’t hide in your head.

They’ll run over you; you’ll be worse off than dead.

I’m talkin’ globalization, globalization. Drug dealing, money stealing globalization blues.

They say forget your suspicions; Work in sweatshop conditions. Sew some more sneakers and guard these munitions.

It’s globalization, globalization. People bashing, job smashing globalization blues.

They say your country’s in debt And you’ve got to pay.

If you want to eat then do what we say. That’s globalization, globalization. Slave made, world trade globalization blues.

Since you can’t get away Better fight them today.

From Seattle to Prague, Manila Bay to LA,

It’s globalization, globalization.

On the street, we’re gonna beat the globalization blues.

READING NOTES

Section 1

1. Four international organizations are described in the section: the World Trade Organization, the United Nations, the World Bank, and the International Monetary Fund. For each one, do the following:

• Describe the role of this organization in the global world.

• Construct a simile that helps explain the organization’s primary function. For example, “The UN is like a counselor who mediates between a group of students to make sure they all have respect for each other.”

2. Define and give a specific example of each of these terms: nongovernmental organization, multinational corporation, nation-state.

3. Describe some of the differing viewpoints about globalization.

Sections 2 to 4

To set up your Reading Notes for Sections 2 to 4, write the section number and title at the top of a page in your notebook. Use one page for each section. Then, for each section, sketch a balance scale like this one. Label the left side “Costs” and the right side “Benefits.”

1. On the left side of the scale, list all the costs of globalization described in the section. On the right side of the scale, list all the benefits described.

2. After the classroom debate, add any additional information you learned to your scale. Then, write a paragraph that answers the Essential Question (Do the benefits of globalization outweigh the costs?) in relation to the section’s topic.

PROCESSING

Write a paragraph answering the Essential Question: Do the benefits of globalization outweigh the costs? Support your argument with at least one piece of evidence related to each of these issues: economic development, the environment, and culture.

Economic Inquiry: Understanding the Effects of Globalization

Economic Question: Is globalization good or bad?

READING NOTES

Economic Question: Is globalization good or bad?

Globalization has affected countries economically and socially throughout the world, with varying results. Watch this video to find out more.

1. With your partner, choose a country in your assigned region of the world. Confirm your selection with your teacher.

Which country did you choose?

2. Research economic and quality-of-life indicators for your country to determine its economic status.

Write a brief statement on the economic status and development level of your country.

3. What supporting questions do you have about the economic and social effects of globalization in your country?

Use reliable sources to answer these questions. Record your sources.

Supporting Questions Answers Sources

4. You will represent your country at a meeting of the World Trade Organization and deliver a speech on globalization.

With your partner, create an outline of your speech. Be sure to address the following questions:

• How has globalization affected your country economically and socially?

• Have the effects of globalization been positive or negative for your country?

• Overall, is globalization good or bad?

5. Write your speech. Use your outline to organize your speech. Make sure to address the three questions covered in your outline.

When you deliver your speech, make sure that you

• clearly communicate your arguments

• speak at an appropriate volume

• make eye contact with the audience

• avoid simply reading your speech

Use evidence and reasoning to support your points.

As you listen to the speeches, take notes about the effects of globalization in each country, and indicate whether you agree with each pair’s assessment of globalization’s effects.

7. Based on the presentations and class discussion, is globalization good or bad overall?

Use evidence and reasoning to support your points.

Use this rubric to evaluate your inquiry project.

Proficient (2 points)

Research Asked thoughtful supporting questions about the economic and social effects of globalization in a country. Evaluated and recorded information about globalization. Evaluated sources for reliable information.

Analysis Used research to determine and evaluate the economic and social effects of globalization in a country and in general. Used research, presentations, and class discussion to assess the overall effect of globalization.

Public Product Wrote speech that clearly explained the economic and social effects of globalization and evaluated those effects on the country and in general. Spoke at an appropriate volume and made eye contact with the audience during speech.

Reflection Reflected on information about globalization to write speech. Reflected on research and presentations to actively participate in a class discussion about the effects of globalization.

Argument Used evidence and reasoning to support their assessment of the effects of globalization on a country and in general.

Emergent (1 point)

Asked supporting questions about the effects of globalization. Recorded information about globalization, but sources may not have been reliable.

Not Present (0 points) Score

Did not ask supporting questions about the economic and social effects of globalization in a country. Did not record information or use reliable sources.

Used minimal research to determine and evaluate the economic and social effects of globalization in a country. Used minimal research, presentations, or class discussion to assess the overall effect of globalization.

Wrote speech that explained the effects of globalization and evaluated those effects on the country or in general. Spoke at an appropriate volume but read speech without making eye contact with the audience.

Did not use research to determine and evaluate the economic and social effects of globalization in a country or in general. Did not use research, presentations, and class discussion to assess the overall effect of globalization.

Did not write speech that explained the economic and social effects of globalization or that evaluated those effects on the country and in general. Did not speak at an appropriate volume and read speech without making eye contact with the audience.

Reflected somewhat on information about globalization to write speech. Reflected somewhat on research and presentations to participate in a class discussion about the effects of globalization.

Used some evidence and reasoning to support their assessment of the effects of globalization on a country and in general.

Did not reflect on information about globalization to write speech. Did not reflect on research and presentations to participate in a class discussion about the effects of globalization.

Did not use enough evidence and reasoning to support their assessment of the effects of globalization on a country and in general.