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1 Please Complete FormThis will change once we have a new location for the participation form.
2 CommonSenseEconomics.com Workshop device readiness Is your device workshop ready?Visit: CommonSenseEconomics.comInstructor resource tab/Choose workshopComplete the participation formBrowse through the Instructor’s ManualAfter participants complete participation form at CSEd, we redirect them to CSE for the actual workshop and contents. Will probably want a screen shot here.
3 Common Sense: Economics for Life! Course Presenter 1Presenter 2Presenter 3Turn on the learning light!We may want this to be more generic. It depends on how easy it is to update the slides on the web site. If it’s easy, each workshop will be updated with the names of the presenters. If it’s hard, then we keep this generic.
4 Common Sense: Economics for Life! Course Workshop OverviewAgendaIntroductions around the roomTurn on the learning light!Insert link to agenda
5 Turn on the learning light Focuses on what students need to know to make sound decisions as individuals and citizensAddresses how markets and political processes workAddresses personal finance and economicsUses technology to excite and motivate the multi-media generation of students to learnTawni: This is a unique part of this course.
6 Revealed Preferences: Multi-media Generation of Students (8-18) TV remains the dominant type of media content consumed, at 4:29 a day.It is followed by:Music/audio at 2:31;Computers at 1:29;Video games at 1:13;Print at 0:38, andMovies at 0:25 a day.
7 Multi-media Generation (8-18) Time spent with every medium other than movies and print increased over the past five years:0:47 a day increase for music/audio0:38 for TV content0:27 for computers, and0:24 for video games. Reference: Rideout, V. J., Foehr, U. G., & Roberts, D. F. (2010). Generation M2 : Media in the lives of 8 to 18 year Olds. Retrieved from Kaiser Family Foundation at
8 This course is fun!Common Sense Economics (2010) by Gwartney, Stroup, Lee and Ferrarini, St. Martin’s PressEconomical (Hardback $15.95 and Kindle $10.99)ConciseDivided into four parts: key elements of economics; institutions for prosperity; economics of political decision-making; personal financeJim
9 Learning light, cont.Stresses reasoning rather than mechanicsUser-friendly, well-organized, and easy to understandThe package is ready to go! It contains everything the instructor needs to teach economics and personal finance.Mark
11 History behind the package U.S. is a nation of many economic and personal finance illiterates.Six master teachers came together to help change this.They decided to focus on those students who may take only one economics/personal finance course.For over five years, the specialized expertise and dedicated work has been used to design, implement and improve on this successful course package.Tawni
12 Yes!It’s easy for instructors and administrators to say “Yes” to Common Sense: Economics for Life! for high school and college students.The course is now offered successfully at universities, community colleges, and high schools.The course connects to national standards and benchmarks.It just so
13 Sample Adoptions Florida State University Northern Michigan University Florida Department of EducationWake Forest Community CollegeDetroit Public SchoolsMacomb Intermediate School District
14 Offered in a variety of classroom settings Face-to-face (F2F)OnlineBlendedSatelliteWhat is “satellite”?
15 F2F Classroom Activities Classroom lessons have been identified for each core module.Support is provided by the Council on Economic education and the Fraser Institute.Most lessons are selected from Virtual Economics which may be purchased through your state council or the Council on Economic Education
16 Overview: The Core Package Pre- (and-post) test of economics and survey attitudes toward markets and government15 learning modules built around key concepts15 sets of discussion board questions and answer keysHigh quality videos, podcasts and classical and contemporary readings15 practical assignments4 supplemental units10 controversies in economics2 comprehensive test banks for randomly generated quizzes and tests of 60 conceptsSupplements: (A) supply and demand in more depth, (B) national income and employment statistics, (C) monetary and fiscal policy, and (4) important historical economic episodes (e.g. Great Depression of the 1930s and the recent financial crisis);
17 Each module providesHigh quality pre-learning questions to get students thinking about relevant issuesKey concepts and learning objectivesPower Point learning guideRead, watch and listenPractical assignmentAct: Quiz or examAct: Post-learning responses using the economic way of thinking to improve initial reply. References expected.Act: A transition to bring students immediately into the next moduleInvite participants to go to Module O and introduce themselves. Then ask them to move into Module 1 and review the module prototype.
18 Common Sense Economics: Four Themes Part I. Twelve Key Elements of Economics Part II. Seven Major Sources of Economic Progress Part III. Economic Progress and the Role of Government Part IV. Twelve Key Elements of Practical Personal Finance
20 The Twelve Key Elements of Part I will… Provide a bridge between common sense and basic principles of economics.Help you begin to think economically.Provide important insights regarding how the world really works.
21 Part I. Twelve Key Elements of Economics 1. Incentives matter.2. There is no such thing as a free lunch.3. Decisions are made at the margin.4. Trade promotes economic progress.5. Transaction costs are an obstacle to trade.6.Prices bring the choices of buyers and sellers into balance.
22 Part I. Twelve Key Elements of Economics 7. Profits direct businesses toward activities that increase wealth. 8. People earn income by helping others. 9. Production of goods and services people value, not just jobs, provides the sources of high living standards.
23 Part I. Twelve Key Elements of Economics 10. Economic progress comes primarily through trade, investment, better ways of doing things, and sound economic institutions. 11. The “invisible hand” of market prices directs buyers and sellers toward activities that promote the general welfare. 12. Too often long-term consequences, or the secondary effects, of an action are ignored.
25 Part I. Module 1 Watch Slice of Life Read Listen and/or Read CSE pages 5-13 (Sections 1.1, 1.2, and 1.3)3 videosListen and/or Read4 items
26 Watch Slice of Life videos We believe this series will help keep students focused on the key points, stimulate their interest in the readings, videos, and audios of each module, and illustrate why it is important to integrate the economic way of thinking into our lives. Plus, it will help make economics more exciting in both seated and online classes, which will enhance the learning of our students.Need to make sure video, reading, and audio lists are posted at CSE
28 Read CSE pages 5-13 (Sections 1.1, 1.2, and 1.3) What are incentives? Why are examples of how changesin incentives change behavior?Is free medical care or free education “free?”What are marginal decisions?Can you think of a new example of a marginal decision?Need to make sure video, reading, and audio lists are posted at CSE
29 Watch 3 videos: CSE 1.1 Freakonomics- Potty training incentives (3:33) CSE 1.2 Solman- Opportunity cost (5:45)CSE 1.3 Learn Liberty- Thinking at the Margin (3:52)Need to make sure video, reading, and audio lists are posted at CSE
30 WatchAll videos are made available to instructors as stand-alone files that can be played directly from a computer in the classroom (Apple and PC) or streamed from Critical CommonsAll videos are captioned for ADA complianceNeed to make sure video, reading, and audio lists are posted at CSE
31 Need to make sure video, reading, and audio lists are posted at CSE
32 Listen to and/or Read 4 items: CSE 1.1 “The Power of Incentives” by Dwight Lee (Audio 8:19 minutes)CSE 1.2 “The Road Not Taken” by Robert Frost (Audio, 1:39 minutes)CSE 1.2 “Opportunities and Costs” by Dwight Lee (Audio, 8:45 minutes)CSE 1.3 “Markets and Marginalism” by Dwight Lee (Audio, 7:58 minutes)Need to make sure video, reading, and audio lists are posted at CSEActually play Road not taken in workshop
33 Act Practical assignment Quiz (or exam) Discussion board Get ready for the next moduleNeed to make sure video, reading, and audio lists are posted at CSE
34 Let’s take a closer look Visit: CommonSenseEconomics.comInstructor Resources TabWorkshops TabEnter the demo site.Look at Modules 1, 5, 8 and 12Turn to your right and left. Offer assistance or seek help.Make sure instructions are correct at new site
44 Part II. Seven Major Sources of Economic Progress Jim
45 Part II. Seven Major Sources of Economic Progress Legal SystemCompetitive MarketsLimits on Government RegulationAn Efficient Capital MarketMonetary StabilityLow Tax RatesFree Trade
46 Per Capita Income: The last 1000 years Income stagnated for the 800 years following year 1000, but growth has exploded during the last 200 years.(Measured in 1990 dollars) world per capita income was $667 in 1820 – only about 50% higher than year By 2003, however, income had risen to $6,516 – 10 times the level of 1820.During the past 200 years, the income growth of the high-income industrial countries (West) has grown even more – nearly 20 fold.$25,000GDP Per Capita2003: $23,710$20,000West GDP per capita$15,0002003: $6,516$10,000World GDP per capita1820: $1,202$5,0001820: $66710001100120013001400150016001700180019002003
56 Afternoon Good afternoon! Are you ready? Engaged? Any thoughts to share?
57 Part III. Economic Progress and the Role of Government
58 Part III. Economic Progress and the Role of Government Government promotes economic progress by protecting the rights of individuals and supplying a few goods that are difficult to provide through markets.Allocation through political voting is fundamentally different from market allocation, and economic analysis indicates that the latter is more consistent with economic progress.The costs of government are not only taxes.
59 Part III. Economic Progress and the Role of Government Unless restrained by constitutional rules, special-interest groups will use the democratic political process to fleece taxpayers and consumers.Unless restrained by constitutional rules, legislators will run budget deficits and spend excessively.Government slows economic progress when it becomes heavily involved in providing favors to some at the expense of others.The net gain to those receiving government transfers is less, and often substantially less, than the amount they receive.
60 Part III. Economic Progress and the Role of Government Central planning replaces markets with politics, which wastes resources and retards economic progress.Competition is just as important in government as in markets.Constitutional rules that bring the political process and sound economics into harmony will promote economic progress.
62 Part III. Module 8 Watch Slice of Life Read Listen and/or Read CSE pages (Sections 3.1, 3.2, and 3.3) and “The Economics of Market Failure”5 videosListen and/or Read1 itemCreate link to “The Economics of Market Failure”
63 Economic EfficiencyEconomists use the standard of economic efficiency to judge economic outcomes.Both governments and markets have problems with efficiently allocating resources.
64 Two Key Roles for Government Protection of property rightsProduction of public goods - - goods that if they are available to one person, they are available to everyone and it is impossible to restrict consumption to only those who pay.Break link between beneficiaries and costs.
65 Market FailureMarkets fail due externalities - - Costs or benefits imposed on a non-consenting third party.Negative externalities: Pollution, traffic, noise, over-fishing, and so forth.Positive externalities: A freshly painted home or a scientific breakthrough.There may be a role for government in reducing negative externalities.
67 Government FailureNobel Laureate James M. Buchanan introduced the idea of “government failure.”Government failure occurs when a government intervention causes a more inefficient allocation of goods and resources than would occur without that intervention.
68 How Governments Fail Special interest group effect Shortsightedness effectGovernment does not allocate based on mutual consent;Voters makes choices based on a “bundle” of positions held by a candidate
69 Let’s Go Shopping! Political vs. Market Allocation Demonstration lessonAllocation through voting is fundamentally different than market allocationProvide handout
70 Rate the Items in Carts 1 and 2 Rate your cart:10 = You really desire the item; gain a lot if you pay the price.-10 = You would be extremely unhappy being forced to purchase the item at any price.0 = You are indifferent to having the item.
71 And the Winner Is?Which cart had the highest value?Everyone receives the items in the winning cart!That’s the democratic solution!How do you feel about that?What might we be able to conclude?Decisions made using democratic processes do not always make individuals better off.
72 Imagine Cart 3 What did cart 3 cost? Pretend you have $75 and a new, empty cart 3.Browse the items in cart 1 and 2 that you placed a high value on -- 5 or 10 rating.Total up the value (not the prices) of your items.Purchase the ones you want by circling the price. Don’t spend over $75.Total up what you paid.What did cart 3 cost?What might we conclude from your cart 3 choices?
73 So which method of choice is most economically efficient? The market method of choice appears to be the most economically efficient in that gives us the greatest value at a lower cost. Is this an unusual result?
81 Part III. Module 11 Watch Slice of Life Read Listen and/or Read CSE pages (Sections 3.9 and 3.10)4 videosListen and/or Read0 items
82 Part IV. Twelve Key Elements of Practical Personal Finance
83 Part IV. Twelve Key Elements of Practical Personal Finance Discover your comparative advantage.Be entrepreneurial. In a market economy, people get ahead by helping others and discovering better ways of doing things.Use budgeting to help you save regularly and spend your money more effectively.Don't finance anything for longer than its useful life.
84 Part IV. Twelve Key Elements of Practical Personal Finance Two ways to get more out of your money: Avoid credit-card debt and consider purchasing used items.Begin paying into a "real-world" savings account every month.Put the power of compound interest to work for you.Diversify- don't put all of your eggs in one basket.
85 Part IV. Twelve Key Elements of Practical Personal Finance Indexed equity funds can help you beat the experts without taking excessive risk.Invest in stocks for long-run objectives, but as the need for money approaches, increase the proportion of bonds.Beware of investment schemes promising high returns with little or no risk.Teach your children how to earn money and spend it wisely.
87 Part IV. Module 12 Watch Slice of Life Read Listen and/or Read CSE pages (Sections 4.1, 4.2, and 4.3)7 videosListen and/or ReadThere are no additional audios or readings in the personal finance part of this course. You are now asked to put your new knowledge to work. So expect an increase in the number of assignments. Plan accordingly.
89 Act Assignment 12.2 “Zero-based Budgeting Guide” Trade-offs, opportunity costs, spend, save and invest for now and the future
90 Budgeting Basics (1) Gross annual income: $40,000 Federal income taxes: $940 a yearPayroll tax deductions: $3060 a year (7.65%)What your net annual take-home pay?Monthly net take-home pay?Bi-weekly or net take-home pay every two weeks?
92 Scavenger Hunt with Your Neighbor: CSE Demo Site Find Paul Solman- Opportunity Cost in Module 1. (Watch)Find Running Out of Agricultural Land in Module 5. (Listen)Find Assignment Budget Basics in Module (Assignment)
101 Ten Controversies Kidneys Cash for Clunkers Oil Supplies Price Gouging SweatshopsGender Wage GapEminent DomainNeedy or Greedy Seniors?Spending, Taxes, and the Role of GovernmentHow Not to Help the Poor
102 Ask students to consider the following as they watch each video… What is the controversy?What is the economic argument?What element of economic thinking is involved?What is the non-economic argument?What appeals are being made in the non-economic argument?
103 Supplemental Modules Economics Going Deeper A. Supply, Demand, Dynamic Change, and Price ControlsB. GDP, Inflation, and UnemploymentC. Fiscal and Monetary PolicyD. The Economics of the Great Depression , Great Recession, and Unemployment
104 Supplemental Modules Economics and Values E. Economics, Work, and HappinessF. Economics, Markets, and MoralityG. The Economics of PovertyH. The Economics of the Environment
105 Supplemental Modules Personal Finance I. Smart Choices for Earning More IncomeJ. Smart Choices for Saving and InvestingK. Smart Choices for Managing CreditL. Smart Choices for Insurance
106 CSE Wrap Up and Cooperative Relations Complete workshop evaluationLearning Management SystemsInstructor’s ManualRegister for upcoming coursesNeed link or insert details of upcoming courses- open access, MOOC, etc.
107 How to stay connected Join the CSE Open Access Course us- see brochure.new videos, class activities, and ideas toFriend us on Facebook.