[close window]
Virtual Economics

PRINT LESSONS:

Lesson 14: Borrowing decisions and expected returns
Master Curriculum Guide: Economics and Entrepreneurship
Entrepreneurs must possess or have access to funds to start their businesses. They may use their own funds; get others to give them funds for a share of the business and claims on future profits (equity financing); or they may borrow money from others (debt financing) with the contractual obligation to pay back the amount of money borrowed plus additional dollars called interest payments.
Grade(s): 9-12
Concepts: Interest, Interest Rates, Investment, Expected Returns,

Theme 4: Lesson 11 - What Is Credit?
Financial Fitness for Life: Bringing Home the Gold - Grades 9-12 - Teacher Guide
Credit decisions are among the most important choices that young people will make. This lesson provides an overview of what credit is and some of the advantages and disadvantages of using credit. Students examine various types of loans including home mortgages, car loans, college loans, personal loans, and credit card loans.
Grade(s): 9-12
Concepts: Credit, Risk, Interest

Lesson 22: Cash Flow and the Successful Entrepreneur
Entrepreneurship in the U.S. Economy: Teacher Resource Manual
In this lesson, students will identify the opportunity costs of various alternatives available to entrepreneurs for maintaining or improving cash flow; based on the data provided, determine the causes and consequences of cash flow problems experienced by entrepreneurial enterprises; recommend actions hypothetical entrepreneurs should take to maintain or improve cash flow.
Grade(s): 9-12
Concepts: Inventory, Accounts receivable, Cash flow, Inventory control, Opportunity cost (review), Credit, Line of credit

Lesson 19: Financing the Entrepreneurial Enterprise
Entrepreneurship in the U.S. Economy: Teacher Resource Manual
In this lesson, students will explain why entrepreneurs need adequate financing to be successful; identify possible sources of financing for entrepreneurs; cit factors that influence the cost of financing an entrepreneurial enterprise; compare alternative methods of financing and entrepreneurial enterprise; evaluate alternatives for financing an entrepreneurial venture and decide which alternative...
Grade(s): 9-12
Concepts: Credit worthiness, Debt, Fixed interest rates, Flexible interest rates, Prime interest rate, Federal Reserve System, Equity

Lesson 18: Entrepreneurs Choose Different Types of Business Organization
Entrepreneurship in the U.S. Economy: Teacher Resource Manual
In this lesson, students will identify characteristics of the following forms of business organization: sole proprietorship, partnership, and corporation; compare forms of business organization to decide which is most appropriate for a given set of circumstances; evaluate relative advantages of starting a new business, buying an existing business, or purchasing a franchise; decide the form of busi...
Grade(s): 9-12
Concepts: Sole proprietorship, Collateral, Unlimited liability, Partnership, Corporation, Stock, Limited liability, Franchise

Lesson 7: Why Middlemen Matter: The Role of Financial Institutions in a Market Economy
From Plan to Market: Teaching Ideas for Social Studies, Economics, and Business Classes
Students participate in a simulation and analyze two case studies emphasizing the importance of the development of financial institutions in the transition economies.
Grade(s): 9-12
Concepts: Banks, Financial Institutions, Interest Rates, Investment, Search Costs, Middlemen

Theme 4: Lesson 12 - Making Credit Choices
Financial Fitness for Life: Bringing Home the Gold - Grades 9-12 - Teacher Guide
Individuals face many credit choices. Students in this lesson act as financial advisors providing advice on when it may or may not be appropriate to use different forms of credit.
Grade(s): 9-12
Concepts: Credit, Decision making

Theme 4: Lesson 17 - Shopping for an Auto Loan
Financial Fitness for Life: Bringing Home the Gold - Grades 9-12 - Teacher Guide
Consumers must shop for credit just as they do for a car or a computer. In this lesson, students learn the skills they need to shop for credit by filling out a credit comparison chart for a hypothetical loan. Then, using the same techniques, they shop online for a loan. Finally, students compare the cost of the same loan at local lending institutions.
Grade(s): 9-12
Concepts: Credit, Decision making

Unit 3: Lesson 18 - Credit Management
Capstone: Exemplary Lessons for High School Economics - Teacher's Guide
This lesson is designed to help students make good consumer-credit decisions. Although using credit is beneficial at times, it often carries higher costs than many people realize. This lesson discusses the costs of credit in a manner that helps students calculate those costs and integrate them in short- and long-term decisions.
Grade(s): 9-12
Concepts: Choice, Debt, Economic wants, Income, Interest, Secured debt, Unsecured debt

Lesson 23: How Entrepreneurs Use Credit
Entrepreneurship in the U.S. Economy: Teacher Resource Manual
In this lesson, students will distinguish between consumer credit and commercial credit; give examples of ways entrepreneurs may use credit as a marketing tool; compare the costs and benefits of the different practices entrepreneurs use for extending credit to their customers; compare the costs and benefits of various types of commercial credit available to entrepreneurs for financing their busine...
Grade(s): 9-12
Concepts: Consumer credit, Commercial credit

Theme 4: Lesson 13 - Applying for Credit
Financial Fitness for Life: Bringing Home the Gold - Grades 9-12 - Teacher Guide
This lesson explains what a credit report is and how to read one. The students play the role of loan officers and review excerpts from the credit reports of loan applicants. They evaluate each applicant's credit history and use the information to determine whether to grant the loan request.
Grade(s): 9-12
Concepts: Credit

Lesson 14 - Credit: Your Best Friend or Your Worst Enemy?
Learning, Earning and Investing: High School
The students do an exercise that shows how credit can be their worst enemy. They learn how quickly credit card balances can grow and how long it can take to pay off a credit-card debt. They also learn that credit can be their best friend. Working in small groups, they consider seven scenarios and decide in each case whether it would be wise for the people involved to use credit. They discuss their...
Grade(s): 6-8, 9-12
Concepts: Choice, Costs and benefits, Credit, Debt, Interest, Revolving credit

Lesson 11- Japan's Economic Miracle
World History: Focus on Economics
Students are introduced to a mystery about Japan's economic growth. They read a passage about economic growth and take part in a group discussion of how several facts of Japanese history are related to Japan's economic growth after World War II.
Grade(s): 9-12
Concepts: Economic Growth, Productivity, Capital, Human Capital, Interest Rates

Unit 6: Lesson 1 - Raising Inflation on the Farm
United States History: Eyes on the Economy - Through the 20th Century
This lesson examines the financial situation of a hypothetical U.S. farmer in the 1890s. It begins by posing an economic mystery about why farmers in the 1890s wanted inflation. It proceeds by defining inflation, deflation, debtor, and creditor. Then students complete a worksheet on farm finances during inflationary and deflationary times. Finally, they draw conclusions on how inflation and de...
Grade(s): 9-12
Concepts: Deflation, Inflation, Debtor, Creditor,

Macroeconomics Unit 6: Lesson 3 - International Finance
Advanced Placement Economics: Teacher Resource Manual
International trade and the methods of limiting trade are extremely important to understanding much of the current discussions about the World Trade Organization (WTO) and the North American Free Trade Agreement (NAFTA). This lesson explains and uses for analysis the concepts of balance of payments and foreign exchange markets. In Activity 52, the students apply their understanding of the balance ...
Grade(s): 9-12
Concepts: Current account, Capital account, Balance of trade, Balance of payments, Debit, Credit,

Unit 5: Lesson 1 - Problems Under the Articles of Confederation
United States History: Eyes on the Economy - Through the Civil War
This lesson begins with discussion of the economic problems facing the new nation. Students read and discuss information in a handout; then they make predictions abo9ut effects on economic growth.
Grade(s): 9-12
Concepts: Debt, Tax, Tariff, Trade, Currency,

Macroeconomics Unit 5: Lesson 5 - Macroeconomic Theories
Advanced Placement Economics: Teacher Resource Manual
Listening to and reading analysis of the various policy proposals can confuse students who are learning economics for the first time. Here the current issues and sources of disagreement among economists should be presented. The students should recognize that most economists hold views that cannot be cat-egorized into a particular school of thought but are a combination of different schools. Activi...
Grade(s): 9-12
Concepts: Crowding-out, Interest rates, Consumption spending, Business investments,

Lesson 23 - Investing Involves Decision Making
Learning, Earning and Investing: High School
This lesson provides an overall review and an opportunity for students to apply many of the concepts stressed in earlier lessons. The students examine different sorts of risk that come with investments. They are introduced to a fivestep decision-making model. After practicing with it, they apply the model in a simulation activity in which they act as financial advisors, offering financial advice i...
Grade(s): 6-8, 9-12
Concepts: Bonds, Capital gain, Certificate of deposit, Dividend, Diversification, Liquidity, Money market account, Mutual funds, Principal, Rate of return, Risk, Savings account, Stocks

Lesson 10 - Consumer Credit: Buy Now, Pay Later, and More
Personal Decision Making: Focus on Economics
Through group activity, students analyze the costs and benefits of using credit cards to purchase goods and services.
Grade(s): 9-12
Concepts: Credit, Consumer credit, Decision making, Opportunity cost, Interest,

Unit 6: Lesson 3 - Lowell Workers and Producers Respond to Incentives
United States History: Eyes on the Economy - Through the Civil War
This lesson includes class discussion of a handout on the Boston Manufacturing Company and the examination of primary source materials taken from the contemporary writings of female workers in textile mills.
Grade(s): 9-12
Concepts: Division of labor, Productivity, Income, Increased supply, Competition,

ONLINE LESSONS:

online Calculating Simple Interest
How do banks calculate the amount of interest paid on a loan? In this lesson, students will view a Livescribe Pencast to learn how to find the dollar amount in interest that is due at maturity. This lesson uses different time periods such as days, months, and years in the calculation as well as varying interest rates.
Grade(s): 6-8, 9-12
Concepts: Interest Rate,Interest,Principal,Simple Interest

online The Early 1980s: A Tough Time For Home Builders and Mortgage Bankers
Have you ever thought of how much it might cost you to finance the purchase of a home? The home's purchase price is likely to be many times the yearly income of the typical household. If families waited until they had accumulated enough savings to use cash to pay for a home, they would be denied the benefits of homeownership for many years. Instead, most families go to a mortgage banker o...
Grade(s): 9-12
Concepts: Banking,Credit,Federal Reserve Structure,Housing,Inflation,Interest Rate,Mortgage,Deflation,Federal Reserve

online The Credit Card Mystery
Credit Cards are a risky business these days, especially for students and those holding multiple cards. Interest rates on credit card balances have always been high relative to other rates, for several reasons. Despite this, there is still a demand for the "plastic money" that many people see as convenient and ideal with the increasingly technological world economy. This lesson explores ...
Grade(s): 9-12
Concepts: Choice,Consumers,Credit,Interest Rate,Benefit,Costs,Interest

online Getting and Using a Credit Card
Students will read the "Credit Counselor" guide to learn about the costs and benefits of credit cards; the C's of credit; credit history; credit application evaluation; and become familiar with some useful formulas. They will need to complete the reading in order to make the best choice from a series of credit profiles and to answer a series of questions during the simulation.
Grade(s): 6-8, 9-12
Concepts: Credit, Interest rate

online How Expensive are Payday Loans?
Students will learn how a payday loan works by watching a video. They will learn that payday loans are an expensive form of borrowing and then calculate the total cost of a payday loan using several methods (table, graph, and formula). Students will learn what makes payday loans an expensive form of quick cash and how to evaluate offers. They will learn the effect rolling over a payday loan can ha...
Grade(s): 9-12
Concepts: Interest,Annual Percentage Rate (APR),Finance Charge

online The Costs of Credit
"Will that be cash, check, debit, or credit?" This lesson plan explores the difference between these. What is the difference? Is using credit the same as paying with cash? Or by check? Or by debit card? Some young people believe that using credit is the same as paying with cash. In fact, some young people believe that all you need to make purchases is a credit card. It seems as if a cred...
Grade(s): 9-12
Concepts: Credit,Decision Making,Interest Rate,Characteristics of Money

online Loan Amortization - Mortgage
How to amortize a loan using an Excel spreadsheet.
Grade(s): 9-12
Concepts: Interest Rate,Mortgage,Interest,Compound Interest,Debt,Financial Planning,Annual Percentage Rate (APR),Principal

online Your Credit Card
Students will compare credit cards by looking at the amount of interest they will incur when paying off the balance on their purchases. Students will discuss times when they will need to use a credit card, rewards programs, and disadvantages of the use of plastic.
Grade(s): 9-12
Concepts: Decision Making,Incentive,Costs,Credit Card,Finance Charge

online Earning Credit
Students participate in a series of activities that provide them with a simulated credit score and an auto loan interest rate based on their credit score. Then they learn to use compound interest and amortization schedules to calculate the real cost of buying a car, and they compare the total cost of buying a car for individuals with high and low credit scores. At the conclusion, students have a s...
Grade(s): 9-12
Concepts: Credit,Interest Rate,Risk,Compound Interest,Credit Report,Principal,Simple Interest

online Q T Pi Fashions - Learning About Credit Card Use
Credit cards are convenient, user friendly, and at times dangerous. In this lesson students learn the joys and dangers of using credit as they help Credit, the main character in this activity, solve her credit problems.
Grade(s): 6-8, 9-12
Concepts: Choice,Consumer Economics,Consumers,Credit,Decision Making,Incentive,Interest Rate,Money Management

top ^