ECONOMICS 1 THE MODERN BUSINESS WORLD

This lesson introduces students to the world of economics using simple stories and fun illustrations. Students are made aware of the basic concepts of bartering and purchasing, and are shown how these concepts affect their everyday lives.

"Setting the Stage" - Before starting the program, ask the students: How are the toys they own acquired? Where does their food come from? How do they get new clothes?

"The Cave Family"
This lesson starts with a short introduction to a cartoon cave family. This illustrates how people have always needed food, shelter and clothing, and the early ways humans acquired these goods.

"From Modern Cities To Prehistoric Times"
Touch-screen game - On the Learning Station, illustrations depicting a busy city appear. Students 'touch' modern buildings, vehicles and homes one by one as directed. As these items are touched, they disappear. As they disappear, talk about how many of these items and services are really needed and how, sometimes, we expect something to always be there and 'take it for granted'. Discuss things they may 'take for granted' and choices they might make if circumstances changed. Encourage role playing as the cave family - as directed by the accompanying narrative.
Hands-on activity - Using the preprinted handouts (on the disk), students circle the items they currently have/use that were not part of the life of a cave family.

"The Start of Trade"
By introducing the students to activities performed by farmers, ranchers and fishermen, they are made aware of the origin of some food and clothing products. Students are shown that when food crops and other goods are abundant, they can be traded by the owners for some other product which is needed or wanted. Students then participate in role playing and discussions to ensure their understanding of this concept.

"Trading For Clothes"
The word 'barter' is introduced and illustrated by humorous images. The wives of the farmer, rancher and fisherman admire each other's goods and eventually trade amongst themselves; each acquires 'new' and 'different' clothing from the others.

"Trading For Pizza"
To make the bartering lesson more relevant, this activity encourages students to barter with each other for pizza.
Hands-on activity - The teacher divides the class into four groups for this bartering exercise. Each group will have a product needed by the other groups to create a pizza. Students must barter with each other in order to obtain all of the ingredients for their pizza. Some students may not want all of the items available, others will. Encourage discussion during this activity. Would their individual food items be as tasty alone? Would their pizza be tastier with multiple food items? How did bartering for items help the student get what he/she wanted on their pizza?
Videotape activity - This activity can be either in the form of individual reports - after 'pizza' is completed - or a collective presentation during the process of bartering. If individual reports, have the student explain the meaning of 'bartering,' its importance in acquiring goods/services and how they used this process to make the pizza of their choice. If you video as a collective presentation, encourage discussion on the same topics while the students are engaged in the process:
Group 1 - 'pizza dough' - tan-colored round paper (or paper plates)
Group 2 - 'pizza sauce' - red tissue paper or construction paper
Group 3 - 'cheese' - shredded yellow or white paper
Group 4 - 'pepperoni' - round cutout circles of construction paper

"Bartering to Money"
Students are shown that bartering was very successful for trade years ago. But, over time, this process became cumbersome and inconvenient. To replace bartering, another exchange system had to be designed - this new exchange system was called 'money.' This segment encourages discussion about solving problems involved in the bartering system and how a newer process (money) may be a solution. This segment illustrates how exchange systems may change over time, but our need for food and other goods remains constant.

"What Can You Buy With Money?"
Using a multitude of images depicting all aspects of life, our need for food, shelter and clothing are illustrated. In this segment, students are introduced to the use of money in acquiring goods and services. They are also shown that recreational activities often require money in order for one to participate. Students discuss activities in which they participate which require money.

"The Exchange of Money For Goods"
Students are shown how a product is produced, transported, displayed, purchased and used by consumers. Using cartoon illustrations, the product - a child's blanket - is followed from the sheering of a sheep; to the blanket factory; to a truck transporting it to a store where it is displayed on a shelf, then, eventually, purchased. Encourage discussion as questions are asked throughout this segment. This process is designed to reinforce the learning of the sequence of events -from sheering to purchase - and allow for questions. Students will be asked to re-enact the sequence of events in the next segment.
Touch-screen activity- Images of the steps illustrating the product flow of the blanket are again presented on the Learning Station. This time they are out of order. Students must choose the appropriate images and put them in the correct order. The end result will resemble a comic strip.

"Shopping For Your Family"
Touch-screen game - This Learning Station grocery shopping game allows the student to make choices as he/she determines what to buy from the selection presented. As purchases are made, the displayed amount of coins is reduced. The student realizes there are not enough coins to buy all the items represented on the screen. Decisions must be made as to what can be bought with the given amount of coins. Divide the students into 'shopping teams', determined by the number of children in the class. Encourage discussion and teamwork as they determine what to buy and why.

To finish the lesson, reproduce the activity sheet (provided on disk) with the comic strip panels from "The Exchange of Money for Goods" blanket story. Students must remember the sequence of events and put them in the correct order by numbering them. Some students may need assistance from the teacher, or other students, to write the numbers. Students will take this sheet home to help describe what they learned from this lesson to their parents.

Before Students Go Home - Review
Why do we need money?
What did people do before there was money? (Barter)
How did bartering help you create the pizza you wanted?
Talk about the teamwork and negotiations required in bartering and how everyone may benefit.
What do you do that requires money?
Review the sequence of the production of the blanket.

Supply List for Activities
"Today I Discovered" - parents handout
Supplies to make paper pizzas - construction paper or paper plates for pizza shell, shredded paper or tissue for sauce, shredded paper, tissue or yarn for cheese, scissors & glue
Preprinted handout to color - comic strip sequence of blanket production
Preprinted work-sheet of food, shelter and clothing items
Videotape

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