Download EFL Lesson 3 Guide Show
EFL Lesson 3 Slides IntroductionIn this lesson students reflect on their experience in the “In the Chips” activity and connect it to their real-world interactions in markets to better understand the role competition and prices play in guiding market outcomes. Fun video clips and a mini-activity where-in students play an additional round of “In the Chips” help them discover the how open competitive markets can promote economic growth. Mini Activity
ObjectivesAt the end of this lesson students will be able to:
Economic Concepts
National Content Standards AddressedStandard 7: MarketsMarkets exist when buyers and sellers interact. This interaction determines market prices and thereby allocates scare goods and services.
Standard 8: The Price SystemPrices send signals and provide incentives to buyers and sellers. When supply or demand changes, market prices adjust, affecting incentives.
Standard 9: Role of CompetitionCompetition among sellers lowers costs and prices, and encourages producers to produce more of what consumers are willing and able to buy. Competition among buyers increases prices and allocates goods and services to those people who are willing and able to pay the most for them.
Key IdeasDownload full lesson guide for procedures and teaching tips. 1.Review:
2. Open markets are a key institution for fostering economic growth and improving standards of living.
3. Competition regulates market activity with profits acting as a motivator for sellers.
4. Economists conceptually organize the apparent chaos of markets by using the supply and demand model.
5. Equilibrium (market clearing) prices emerge from the interactions of demanders and suppliers in markets and provide incentives that shape buyers’ and sellers’ future choices.
6. Markets function most effectively when prices move freely in response to changes in supply and demand. Institutional support for markets, in the form of clearly defined property rights and the rule of law, facilitate the free movement of prices. 7. Market power results from successful efforts to reduce competition.
Ideas To Take Away From This Lesson
When two goods serve similar enough purposes for a consumer the two goods are?Substitutes occur when there are at least two products that can be used for the same purpose, such as an iPhone vs. an Android phone.
When individuals come together to buy and sell goods and services they form a N?A market transaction may involve goods, services, information, currency, or any combination of these that pass from one party to another. In short, markets are arenas in which buyers and sellers can gather and interact. Two parties are generally needed to make a trade.
When there are many buyers and sellers and none can influence prices this is called _____?The most fundamental is perfect competition, in which there are large numbers of identical suppliers and demanders of the same product, buyer and sellers can find one another at no cost, and no barriers prevent new suppliers from entering the market. In perfect competition, no one has the ability to affect prices.
What happens when there is an increase in prices for goods and services combined with a reduction in the value of money?In economics, inflation is a general increase in the prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money.
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