UNDERSTANDING ECONOMICS IN UNITED STATES HISTORY

UNDERSTANDING ECONOMICS IN UNITED STATES HISTORY

A WORKSHOP SPONSORED BY:

PRESENTED BY BRETT BURKEYFLORIDA ATLANTIC UNIVERSITY CENTER FOR ECONOMIC EDUCATIONUNDERSTANDING ECONOMICS IN UNITED STATES HISTORY-OVERVIEWCreated by the Council on Economic Education39 Lessons that show how economics can be taught in U.S. history39 Lessons are grouped into 10 units

THE UNITSUnit One: Three Worlds MeetUnit Two: Colonization and SettlementUnit Three: Revolution and the New NationUnit Four: Expansion and ReformUnit Five: Civil War and Reconstruction

THE UNITSUnit Six: The Development of the Industrial United StatesUnit Seven: The Emergence of Modern AmericaUnit Eight: The Great Depression and World War IIUnit Nine: Postwar United StatesUnit Ten: Contemporary United States

EACH LESSON INCLUDESStandards in Economics and HistoryCEE Standards in EconomicsNational Standards in HistoryWebsite: http://ushistory.councilforeconed.org/visuals.phpAssessmentMultiple choiceEssay

AGENDAINTRODUCTIONS / FUNDAMENTALS OF ECONOMICSTHE GREAT EPIZOOTIC / A LESSON ON SUPPLY & DEMANDTHE CIVIL WAR / LESSONS 18 & 19FREE SILVER & MONEY PANICS / LESSONS 27 & 28 WITH REFERENCES TO THE WIZARD OF OZ AND 1907-2007LUNCHTHE GREAT DEPRESSION & NEW DEAL / LESSONS 30 & 31THE NO GOOD 1970s / LESSON 36USING MACROECONOMIC DATA TO PREDICT PRESIDENTIAL ELECTIONSCONCLUSION AND EVALUATION FORMGOALS FOR THE DAYIntroduce basic economic concepts Economic way of thinking / mysteriesDemonstrate some lessonsPlay along for the funSee how lessons are doneWhisper to neighbor about how you will do a better jobExpress dismay over my lack of knowledge about U.S. historyForum for discussion

What Can Economics Contribute?Economics stresses the idea that all people make choices.But, they dont know at the time what the consequences of their choices will be.All social phenomena emerge from the choices that individuals make in response to expected costs and benefits to themselves.Paul Heyne

Guide to Economic Reasoning1. People choose.2. Peoples choices involve costs.3. People respond to incentives in predictable ways.4. People create economic systems that influence individual choices and incentives. 5. People gain when they trade voluntarily.6. Peoples choices have consequences that lie in the future.

BUT LIMITED OR SCARCE RESOURCES!SOCIETY HAS VIRTUALLY UNLIMITED WANTS...THE FOUNDATION OF ECONOMICS10

Dealing With Scarcity - When There Is NotEnough For Everyone - Someone Suffers

11

Do the Benefits outweigh the cost?Scales of EconomicsExpected marginal benefitsExpected marginal costsChoices are primarily marginal not all or nothing.Economic Way of Thinking12

There Is No Such thing As A Free Lunch.TINSTAAFLEverything has a cost.This cost [opportunity cost] is one of themost important concepts of the PPC.

FoodComputers100405020

Gained food, gave up computers, opportunity cost was computers.Gained computers, gave up food, so opportunity cost was food.

ScarcityChoicesOpportunity CostsOpportunity BenefitOpportunity Set[what is possible for $10,000]Opportunity Cost

The Opportunity Cost is the "Opportunity Lost"14 Action or policy that encourages individuals to act in a particular way by increasing the benefits of their actions

INCENTI VE Action or policy that discourages individuals to act in a particular way by increasing the costs of their actions

DISINCENTIVEIf you want people to do more of an activity, change the incentives by increasing the marginal benefit or decreasing the marginal cost of the activity. If you want people to do less of an activity, change the incentives by decreasing the marginal benefit and increasing the marginal cost of the activity. Policy ImplicationsUsing incentives and disincentives, design a policy to: induce teachers to teach well induce support for warinduce able-bodied welfare recipients to go to workinduce people to change their spending habitsinduce farmers to leave farminginduce a housing boom