Students engage in a simulation to explore how productivity influences the distribution of income and how government policy influences the redistribution of income. They calculate measures of central tendency for the entire class, their group's percentage of total classroom income, and graph the Lorenz curve as a representation of the income distribution using an online graphing tool. Students simulate government policies to explore the impact on income distribution and income inequality. Students measure income inequality by interpreting the shape of the Lorenz curve, calculating the Gini coefficient by estimating the area under the Lorenz curve, and comparing the measures of central tendency. Students learn about the Temporary Assistance to Needy Families (TANF) welfare program in the United States and apply what they have learned about the income distribution and income inequality to examine TANF’s effect.
Is the distribution of income in the United States becoming more unequal? Does the average American today have a higher or lower standard of living than the average American of a generation ago? Will the next generation have a higher or lower standard of living?
What determines a person's salary? Why do professional athletes make so much money? People who work as firefighters, police officers or teachers are clearly more important to our society, yet they make much less money than jocks. What explains this?
The following lessons come from the Council for Economic Education's library of publications. Clicking the publication title or image will take you to the Council for Economic Education Store for more detailed information.
This publication contains complete instructions for teaching the lessons in Capstone. When combined with a textbook, Capstone provides activities for a complete high school economics course. 45 exemplary lessons help students learn to apply economic reasoning to a wide range of real-world subjects.
8 out of 45 lessons from this publication relate to this EconEdLink lesson.
Focus: Understanding Economics in U.S. History uses a unique mystery-solving approach to teach U.S. economic history to your high school students.
8 out of 40 lessons from this publication relate to this EconEdLink lesson.
This revised edition features simulations, role plays, small-group discussions and other active-learning instructional activities to help students explore economic concepts through real-life applications.
7 out of 21 lessons from this publication relate to this EconEdLink lesson.