Economic Enigmas Activity Analyzing Enigmas Get into pairs Each student will need a copy of Student Handout A In this activity you and your partner will use the principles of economic thinking to help analyze several economic enigmas ID: 274972
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Slide1
Thinking Like An Economist
Economic EnigmasSlide2
Activity: Analyzing Enigmas
Get into pairs. Each student will need a copy of Student Handout A.
In this activity, you and your partner will use the principles of economic thinking to help analyze several economic enigmas.
enigmas = puzzles or riddles
Some economists study economic enigmas and have written books, such as
Freakanomics
and
The Economic Naturalist,
to explain them.Slide3Slide4
Activity: Analyzing Enigmas
Economic Enigma 1
Step 1: Carefully consider the economic data shown
on the next slide.
After analyzing the graphs, table, and photograph, identify the economic enigma you think these data lead to.
When asked by your teacher, share your economic enigma with the class.Slide5Slide6
Activity: Analyzing Enigmas
Economic Enigma 1
Record the actual enigma (see below) in the appropriate place on Student Handout
Why do people pay for bottled water when it is so much more expensive than tap water?Slide7
Activity: Analyzing Enigmas
Economic Enigma 1
Step 2: On your handout, list any principles of the economic way of thinking that help explain this enigma.
Principles of Economic Thinking
Principle 1: Scarcity Forces Tradeoffs
Principle 2: Costs Versus Benefits
Principle 3: Thinking at the Margin
Principle 4: Incentives Matter
Principle 5: Trade Makes People Better Off
Principle 6: Markets Coordinate Trade
Principle 7: Future Consequences CountSlide8
Activity: Analyzing Enigmas
Economic Enigma 1
Step 3: Choose the
one
principle that you believe best explains this enigma. On your handout, describe why.Slide9
Activity: Analyzing Enigmas
Think back to your response for the Preview question:
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?
How might your response have been different if you had applied the principles of economic thinking to this Preview question?Slide10
Activity: Analyzing Enigmas
Economic Enigma 2
Step 1: Carefully consider the economic data shown
on the next slide.
After analyzing the statistics, graph, and other information, identify the economic enigma you think these data lead to.
When asked by your teacher, share your economic enigma with the class.Slide11Slide12
Activity: Analyzing Enigmas
Economic Enigma 2
Record the actual enigma (see below) in the appropriate place on Student Handout
Why are there so many Starbucks
so close together?Slide13
Activity: Analyzing Enigmas
Economic Enigma 2
Step 2: On your handout, list any principles of the economic way of thinking that help explain this enigma.
Principles of Economic Thinking
Principle 1: Scarcity Forces Tradeoffs
Principle 2: Costs Versus Benefits
Principle 3: Thinking at the Margin
Principle 4: Incentives Matter
Principle 5: Trade Makes People Better Off
Principle 6: Markets Coordinate Trade
Principle 7: Future Consequences CountSlide14
Activity: Analyzing Enigmas
Economic Enigma 2
Step 3: Choose the
one
principle that you believe best explains this enigma. On your handout, describe why.Slide15
Activity: Analyzing Enigmas
Think back to your response for the Preview question:
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 product? Why?
How might your response have been different if you had applied the principles of economic thinking to this Preview question?Slide16
Activity: Analyzing Enigmas
Economic Enigma 3
Step 1: Carefully consider the economic data shown
on the next slide.
After analyzing the statistics, graph, and other information, identify the economic enigma you think these data lead to.
When asked by your teacher, share your economic enigma with the class.Slide17Slide18
Activity: Analyzing Enigmas
Economic Enigma 3
Record the actual enigma (see below) in the appropriate place on Student Handout
Why don’t more people carpool?Slide19
Activity: Analyzing Enigmas
Economic Enigma 3
Step 2: On your handout, list any principles of the economic way of thinking that help explain this enigma.
Principles of Economic Thinking
Principle 1: Scarcity Forces Tradeoffs
Principle 2: Costs Versus Benefits
Principle 3: Thinking at the Margin
Principle 4: Incentives Matter
Principle 5: Trade Makes People Better Off
Principle 6: Markets Coordinate Trade
Principle 7: Future Consequences CountSlide20
Activity: Analyzing Enigmas
Economic Enigma 3
Step 3: Choose the
one
principle that you believe best explains this enigma. On your handout, describe why.Slide21
Activity: Analyzing Enigmas
Think back to your response for the Preview question:
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?
How might your response have been different if you had applied the principles of economic thinking to this Preview question?Slide22
What Tools to Economists Use?Slide23
What Tools to Economists Use?
Graphs: Two-dimensional representations of a three-dimensional world.Slide24
What Tools to Economists Use?
Economic Models: Simplified Representations of RealitySlide25
Activity: The Power To Choose
Consider your opinion on the following statement:
Everyone should attend college.
Then, go stand in the corner of the classroom that best represents your viewpoint.
Strongly
Agree
Strongly
Disagree
Somewhat Agree
Somewhat DisagreeSlide26
Activity: The Power To Choose
With the other students in your corner, briefly discuss your rationale.
Then, one student from each group will share the group’s opinion.
Strongly
Agree
Strongly
Disagree
Somewhat Agree
Somewhat DisagreeSlide27
Activity: The Power To Choose
Read the handout entitled “The Power to Choose,” then be prepared to discuss the following questions:
What reasons does Ryan Allis give for deciding to attend college?
Do you think he made the right decision? Why or why not?Slide28
Activity: The Power To Choose
Complete the Costs and Benefits of Going to College table on the back of the handout by filling in your preferences according to the instructions.Slide29
Activity: The Power To Choose
After completing your cost-benefit table, be prepared to discuss the following questions:
Was your score consistent with the decision you think you will make (or have already made) about attending college?
Why might college be a better decision for some people than for others?Slide30
Now it is your turn.
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.
List
and explain
any economic principles that help explain your enigma.
Choose the one principle that you believe best explains your enigma. Explain
why
this principle provides the
best
explanation.Slide31
Choose an Enigma to Analyze
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?
OR
Come up with your own.