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Virtual Economics

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Lesson 6 - What Is a Bond?
Learning, Earning and Investing: High School
In this lesson the students learn what bonds are and how bonds work. They learn the basic terminology related to bonds and participate in a simulation activity aimed at showing that bonds are certificates of indebtedness, similar to an IOU note. Finally, the students explore credit ratings and calculate average coupon rates for various bond ratings in order to determine the relationship between ra...
Grade(s): 6-8, 9-12
Concepts: Bond, Bond rating, Coupon, Coupon bond, Coupon rate, Default, Face value, Maturity date, Par value, Risk, Zero-coupon bond

Lesson 12 - Building Wealth over the Long Term
Learning, Earning and Investing: High School
The students are introduced to the case of Charlayne, a woman who becomes, accidentally, a millionaire. Charlayne's success, the students learn, was unexpected, but not a miracle. It can be explained by three widely understood rules for building wealth over the long term: saving early, buying and holding, and diversifying. The lesson uses Charlayne's decisions to illustrate each of these rules. It...
Grade(s): 6-8, 9-12
Concepts: Compound interest, Diversification, Forms of saving and investing, Reward, Risk

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 7- The Great Tulip Boom
World History: Focus on Economics
The teacher displays a transparency comparing the prices of many goods in the 1600s in the Netherlands to prices paid for rare tulip bulbs during the Great Tulip Boom of the 1630s. Students perform a simulation of the boom and write a short essay expressing their personal feelings about the relationship between risk and rates of return.
Grade(s): 9-12
Concepts: Financial Investment, Rate of Return, Risk, Speculation

Theme 3: Lesson 9 - There Is No Free Lunch in Investing
Financial Fitness for Life: Bringing Home the Gold - Grades 9-12 - Teacher Guide
Risk is inherent in all investments. In investing, there are risks you cannot control. However, other risks can be controlled. The key is to develop a risk-reward ratio with which you are comfortable. The higher the risk, the greater the potential reward. This is why there is no free lunch in investing. In this lesson, students learn about five types of risk and then compare the risks and re...
Grade(s): 9-12
Concepts: Money management, Real vs. Nominal, Risk, Investing, Savers, Saving, Investment

Lesson 14 - Savings and Personal Investments: If You're So Smart, Why Aren't You Rich?
Personal Decision Making: Focus on Economics
Students view a transparency showing the difference between economics definitions and personal finance definitions of the terms capital and investment. They read and discuss a handout listing four basic rules for wise investment decisions.
Grade(s): 9-12
Concepts: Capital, Investment, Savings, Opportunity cost, Securities, Stocks, Bonds, Mutual funds, Savings accounts, Certificates of deposit, Risk versus return, Liquidity,

Lesson 16 - What We've Learned
Learning, Earning and Investing: High School
This lesson features a game in which the students review key vocabulary words and concepts presented in earlier lessons. The game is called Flyswatter Review. The teacher divides the class into two teams. Using transparencies, the teacher projects financial terms from the visuals onto a screen or wall. The teams compete to select the correct definition.
Grade(s): 6-8, 9-12
Concepts: Stock Market, Stock, Mutual Fund, Risk, Liquidity, Liquidity Risk

Lesson 2 - Investors and Investments
Learning, Earning and Investing: High School
In this lesson the students explore different types of investments, some of which are unconventional, in order to grasp the basic idea that investment involves trading off present benefits for future satisfaction. The students also apply the criteria of risk, return and liquidity to define more precisely the meaning of investing.
Grade(s): 6-8, 9-12
Concepts: Investing, Investment, Liquidity, Return, Risk

Lesson 7 - What Are Mutual Funds?
Learning, Earning and Investing: High School
The students form class investment clubs that work much in the way mutual funds do. They invest $3,000 (300 shares at $10 a share) in up to six stocks. One year later they revalue their shares and determine whether a share in their class investment clubs has increased or decreased in value. Finally, they read about mutual funds and learn that the concept behind mutual funds is similar to the conce...
Grade(s): 6-8, 9-12
Concepts: Diversification, Liquidity, Load, Mutual fund, Net asset value, Risk and reward

Unit 6: Lesson 33 - Gross Domestic Product (GDP) and How to Measure It
Capstone: Exemplary Lessons for High School Economics - Teacher's Guide
Students examine GDP. They distinguish between nominal and real GDP. They study how GDP is comprised of household spending on consumption goods and services (C), business investment spending (I), government spending on goods and services (G), and net exports (X-M). They participate in a simulation in which they classify economic events into the categories C, I, G, or (X-M), and predict whether ...
Grade(s): 9-12
Concepts: Consumption, Exports, Gross domestic product (GDP), Government spending on goods and services, Imports, Investment, Net exports

Lesson 7: Places and Production
Geography: Focus on Economics
Students calculate United States GDP and GDP per capita, use of choropleth map to acquire information, and create choropleth maps of GDP per capita in South America. They identify regions with high and low DGP per capita and suggest reasons why the well-being of people may be overestimated in countries with high GDP per capita and underestimated in countries with low GDP per capita.
Grade(s): 9-12
Concepts: Gross Domestic Product, Choropleth Map, Measure of Value, Double Counting, Final Goods and Services, Flow of Product Approach, Earnings and Cost Approach, Consumer-Spending, Investment Spending, Government Spending, Exports, Imports, Gross Domestic Product Per Capita

Unit 6: Lesson 15 - Halloween Treats and Nonrenewable Resources
Economics and the Environment
Students are introduced to the "when" question with a Halloween variation of the "cake-eating" problem. The snacks described in the problem are then used to demonstrate how a market for a nonrenewable resource works.
Grade(s): 9-12
Concepts: Nonrenewable Resources, Assets, Interest Rate, Price, Rate-of-return, Capital Gain,

Lesson 10: Why Are Some Nations Wealthy?
Focus: Economic Systems
Students work in pairs to examine data from several nations regarding size, natural resources, and population. Using these data they make predictions about which nations are likely to be below, at, or above the world average of per capita Gross Domsetic Product (GDP). GDP is the basic economic measure of national income, so per capita GDP is a key measure of a nation's per person income. Studen...
Grade(s): 9-12
Concepts: Economic Growth, Productivity, Property Rights, Saving and Investment, Physical Capital and Human Capital, Natural Resources, Trade

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,

Unit 3: Lesson 16 - Making Choices About Saving and Investing
Capstone: Exemplary Lessons for High School Economics - Teacher's Guide
This lesson introduces the distinction between savings and the investment. It demonstrates how the price of money --the interest rate--is critical to making the right savings and investment choices. It explains when, under various conditions, it is or is not in people's best interest to save.
Grade(s): 9-12
Concepts: Choice, Inflation, Interest, Investment, Loanable funds market, Purchasing power, Real interest, Savings

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

Unit 7: Lesson 1 - Saving and Investing in Razorback
United States History: Eyes on the Economy - Through the Civil War
In this saving and investment simulation small groups of students decide how they would invest $3,000, given a list of 10 possibilities. They learn how much they earned on their investments, taking into account not only the rate of returns on the savings but also the financial consequences of investments that were not made.
Grade(s): 9-12
Concepts: Incentives, Profit, Savings, Investment,

Unit 6: Lesson 6 - What is Investment?
United States History: Eyes on the Economy - Through the Civil War
Students read an activity about a fictitious farmer of the early 1800s who used earnings from his labor to buy a farm and then used income from the farm to increase his wealth in the future. Students then answer questions about the farmer's decision.
Grade(s): 9-12
Concepts: Productive resources, Investment,

Theme 1: Lesson 1 - How to Really Be a Millionaire
Financial Fitness for Life: Bringing Home the Gold - Grades 9-12 - Teacher Guide
This lesson is designed to get students interested in personal finance. Financial planning may seem dull and laborious, but finding out how to become a millionaire is an activity that tends to stir up considerable interest. This lesson shows the students that they are unlikely to achieve wealth without self-discipline. Achieving personal wealth involves planning and making sound choices, such a...
Grade(s): 9-12
Concepts: money management, saving, investing, compound interest

Lesson 17: Entrepreneurs and government intervention
Master Curriculum Guide: Economics and Entrepreneurship
All firms exist within the context of society and its governmental system. Business activity certainly can contribute to the goals of society. On the other hand, the interests of society sometimes can conflict with those of individual entrepreneurs and businesses.
Grade(s): 9-12
Concepts: Role of Government, Government Intervention, Cost of Government Regulation, Externalities, Laissez-faire, Minimum Wage,

ONLINE LESSONS:

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 Pop Goes the Housing Bubble
In this lesson, students will learn about a speculative bubble within the context of the U.S. real estate market.
Grade(s): 9-12
Concepts: Credit,Decision Making,Incentive,Investment,Risk,Debt,Borrow,Asset,Collateral,Lender,Real Estate

online Transportation: They Say We Had a Revolution (Part 1)
Advancements in transportation have played a key role in the growth of our nation. U.S.government policies have also had a considerable impact on the development of transport as we know it today. In this series of three lessons,the students examine transportation and its impact on our nation (and vice versa) since the United States declared its independence in 1776. Lesson 1 focuses on improvement...
Grade(s): 6-8, 9-12
Concepts: Economic Growth,Incentive,Inventors,Markets,Non-price Determinants,Price,Role of Government,Specialization,Supply,Technological Changes,Costs,Determinants of Supply,Gains from Trade,Investment,Standard of Living,Transaction Costs,Innovation

online Transportation: They Say We Had a Revolution (Part 3)
Advancements in transportation have played a key role in the growth of our nation. U.S. government policies have also had a considerable impact on the development of transport as we know it today. In this series of three lessons, the students examine transportation and its impact on our nation (and vice versa) since the United States declared its independence in 1776. Lesson 1 focuses on improvem...
Grade(s): 6-8, 9-12
Concepts: Competition,Incentive,Inventors,Profit Motive,Role of Government,Technological Changes,Investment,Profit,Property Rights,Innovation

online What's the Cost of Spending and Saving?
This lesson examines the benefits and opportunity cost of spending and saving. The students learn how compound interest makes savings grow. Compounding provides an incentive to save and invest early. The benefits of saving and investing when you are young can increase substantially over time when funds are allowed to compound.
Grade(s): 9-12
Concepts: Interest Rate,Opportunity Cost,Saving,Investment,Compounding,Rate of Return,Rule of 72,Spend

online Collecting for Fun . . . and Profit?
Art, baseball cards, coins, comic books, dolls, jewelry and stamps are just a few examples of the many things people collect. While some people collect for fun — others hope to profit. In this lesson, students explore how supply and demand influence the price of collectibles. They also evaluate speculation in collectibles as an investment option. They learn that collectibles are one ...
Grade(s): 6-8, 9-12
Concepts: Demand,Investing,Price,Supply,Investment,Risk

online President Jackson and the Veto of the Second National Bank
ESSENTIAL DILEMMA Could the conflict over the Second National Bank have been resolved in a way that supported the values advocated by both President Jackson and Congress?
Grade(s): 9-12
Concepts: Money Supply,Definition of Money,Monetary Policy,Money,Risk,Government Failure,Market Failures,Bank,Fraud Risk,Paper Money,Characteristics of Money

online Taxation and the National Debt
ESSENTIAL DILEMMA Is there a fair and efficient way to fund and maintain the public services we want?
Grade(s): 9-12
Concepts: Budget,Budget Deficit,Incentive,Taxation,Costs,Investment,Debt,Utility,Capital Gain,Revenue

online The History of Social Security
ESSENTIAL DILEMMA: Social Security Act of 1935: Did the creation of a federally administered old-age pension program support or threaten American values and traditions?
Grade(s): 9-12
Concepts: Economic Growth,Standard of Living,Government Spending,Savings,Depression

online Saving
Students take an interest inventory test that gives them a list of careers from which to choose. Once they select a career they are given the annual median wage for that career. Students are taught how to make a table, label a graph’s axes, title a graph, plot the first two points, and connect the points. Given their careers’ yearly salaries, students determine their monthly earned inc...
Grade(s): 9-12
Concepts: Budget,Income,Saving,Taxes,Savings,Disposable Income,Expenses

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