3.9 OVERVIEW

The student will identify examples of making an economic choice and will explain the idea of opportunity cost (what is given up when making a choice).

SUGGESTED INSTRUCTIONAL STRATEGIES

• Explain to the class that you are going to demonstrate an economic condition by simulating a situation of scarcity. Review with the students the meaning of scarcity covered in second grade. Scarcity is not being able to meet all wants at the same time.
  -Pass out a limited number of cups to the students making sure you do not have enough for everyone.
  -When the student says I don’t have a cup, say, “I’m sorry. I don’t have enough to go around.”
  -Pour a drink in the cups, again making sure you do not have enough for every cup. Again, apologize and say, “I’m sorry. I don’t have enough to go around.”
  -Pass out popcorn, making sure some students are left out. Again, apologize and say, “I’m sorry. I don’t have enough to go around.”
• Lead a discussion about how some people did not receive items and how it made them feel. As the discussion slows, write the word scarcity on the board. Tell the students scarcity exists when there is not enough of something to go around. Ask what was scarce in each case in the classroom.
  -Pass out an activity sheet and ask students to color both sides. After they have finished the activity sheet, ask them to look at the two pictures and decide which picture they like the best and cut it out.
  -Guide the classroom discussion that they are making a decision about which picture they want to keep. -When the students have cut the picture out, write the words opportunity cost on the board with the definition as the next best thing given up.
  -Lead a discussion about how they decided which picture to cut out and what happened to the picture on the other side. The discussion should include how they felt about ruining one of the pictures. Tell the students that they had to make a decision about what to do.
  -Explain that people make decisions all the time when they are consumers. This is called economic choices. When a consumer has to decide between two goods or services, the choice they give up is called their opportunity cost.
  
• Create a chart with the following headings: Choices, Choices Made, and Choices Given Up (oportunity cost).
  -Post the Choices chart on the board. Tell the students that you are going to show them several different pairs of goods and that one of them will get to choose which item they want.
  -Set out the first two items out and ask students to write down their choices under the first category.
  -Call on a student to come forward and choose what they want. When the student has made his or her selection ask the other students to write that choice under the category Choices Made.
  -Solicit from students what was not chosen and write that choice in the column Choices Given Up (opportunity cost).
  -Continue this process for several more times.
  -Review the chart with students making sure they understand that a choice had to be made and what was given up was the opportunity cost.
  -Tell the students not only are items given up but also sometimes they have to make choices between activities. Give examples like choosing between playing baseball or going to the movies, watching TV, playing outside, going to school, or staying home.
  -Ask the students if they have ever had to make an economic decision. If they have, let them tell about their two choices. Describe how they made their decision what to choose and what was their opportunity cost.

WEB SITES

http://cob.jmu.edu/econed/Elementary.htm
Elementary economics lessons are available at this site.

http://www.mcps.k12.md.us/curriculum/socialstd/Econ_Geog.html
Sample elementary economic books and lesson plans are included at this site.

http://www.economicsamerica.org
National Council of Economic Education has many outstanding lesson plans.

http://www.pen.k12.va.us/VDOE/Instruction/info.pdf
The Primary Knowledge of Economics serves as a valuable resource.

http://www.vcu.edu/busweb/vcee
Click on the Resources section of the Virginia Council of Economic Education for lesson plans and other materials for teacher economics.

http://chumby.dlib.vt.edu/melissa/posters
This Web site has poster sets for the social studies curriculum.

http://www.fte.org
The Foundation for Teaching Economics has resources for teachers.

http://www.eduplace.com/graphicorganizer
A collection of graphic organizers to be used in the unit may be found at this Web site.

http://www.sdcoe.k12.ca.us/score/actbank/torganiz.htm
Here are more graphic organizers.

LITERATURE LINKS

Identify examples of making an economic choice and explain the idea of opportunity cost (what is given up to make a choice)

Wells, Rosemary.
Bunny Money. New York: Puffin, 2000.
Max and Ruby must make choices in order to purchase a birthday gift for Grandma.

Ziefert, Harriet.
A New Coat for Anna. Alfred A. Knopf, 1986.
Even though there is no money, Anna’s mother finds a way to make Anna a badly needed winter coat.

Williams, Vera B.
A Chair for My Mother. Mulberry Books, New York, 1988.
Economic choices are a common thread as the story develops.