Students serve as an Economic Advisor to the President, who must increase military spending out of political necessity, but needs to reduce spending in other programs to limit the deficit. Conflicting goals create a need for compromise and tradeoffs to create a national budget, while trying to remain under deficit limits.
This lesson introduces students to three basic economic indicators: real GDP, the inflation rate, and the unemployment rate. The students work in small groups to develop an economic forecast, using the three basic economic indicators. They participate in a simulation activity involving a fictional economic forecasting firm. The firm has taken on a client who wishes to start a new business and wants to know whether this is a good idea, given the current economic climate. To advise the client, the students produce a report based on research they conduct about the state of the economy, according to the three economic indicators.
Students apply a particular model for making decisions in exercises that call for choosing a college and buying a personal computer. The model focuses on explicit identification of problems, alternative possibilities for solving problems, criteria for evaluating those possibilities, and the opportunity cost of the decisions arising from the process. The need to make decisions is shown to be based in the condition of scarcity.
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.
11 out of 45 lessons from this publication relate to this EconEdLink lesson.
Use this DVD program to show students how to live healthy, wealthy and risk-free.
10 out of 12 lessons from this publication relate to this EconEdLink lesson.
This publication helps students analyze energy and environment issues from an economics perspective.
6 out of 10 lessons from this publication relate to this EconEdLink lesson.