Related Lessons

Calendar Item: Philadelphia And Reading Railroad Hits The Skids on February 20, 1893

Banks & Credit Unions (Part I)

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

Grades: 9-12
Published: 05/24/2007

Airline Mergers, Software Industry Monopolies: Contestable Markets?

Mergers within industries such as banking, telecommunications, and airlines have created a stir among consumers who charge that economic freedom and efficiency are being sacrificed in favor of corporate profits. The theory of contestable markets postulates that firms in imperfectly competitive markets may act as though they operate in a purely competitive market when entry and exit are perfectly (or nearly) costless. Firms generate a normal profit when faced with the threat of additional market consumers can continue to enjoy the lower prices that accompany competition; the merger between firms and subsequent strengthening of business concentration may not have detrimental effects on consumers. The United States Department of Justice has used this theory on antitrust cases to rule in favor of the defendant. Students will read an overview of the contestable markets hypothesis and determine whether or not it is applicable to the airline mergers and to the Microsoft antitrust case. In this lesson, you will determine whether mergers and monopolies within certain industries have negative effects on consumers based on the theory of contestable markets.

Grades: 9-12
Published: 05/11/1998

Bank Mergers Lead to Greater Business Concentration

The recent merger between NationsBank and BankAmerica will create the USA's largest bank by the end of the year. This was the third merger in the banking industry within a week, and more are rumored to come. Includes the concepts of types of markets, oligopolies, competition, and business concentration.

Grades: 9-12
Published: 04/16/1998

Related Publications

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.

Advanced Placement Economics: Teacher Resource Manual

The teacher guide accompanies the student activities books in macro- and microeconomics for teaching college-level economics in AP Economics courses. The publication contains course outlines, unit plans, teaching instructions, and answers to the student activities and sample tests.

Grades: 9-12
Published: 2003

58 out of 58 lessons from this publication relate to this EconEdLink lesson.

Capstone: Exemplary Lessons for High School Economics - Teacher's Guide

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.

Grades: 9-12
Published: 2003

45 out of 45 lessons from this publication relate to this EconEdLink lesson.

Focus: Understanding Economics in U.S. History

Focus: Understanding Economics in U.S. History uses a unique mystery-solving approach to teach U.S. economic history to your high school students.

Grades: 9-12
Published: 2006

40 out of 40 lessons from this publication relate to this EconEdLink lesson.