In Part I, two high school students are researching their homework online when they come across a lecture on free market economy given by Nobel Prize winner Milton Friedman. Friedman uses "I, Pencil," a short story by Leonard Read, to explain how a free-market economy operates, stating there is nobody in the world who knows how to make a pencil. He explains that thousands of people worldwide manufacture the various components of a pencil. For example, the wood comes from United States, the graphite from South America, rubber from Malaysia, etc. And even though these people do not speak the same language and have very different backgrounds, they are able to cooperate peacefully to produce a pencil. The transaction is voluntary, has no central control and all parties involved are able to benefit.
Part II focuses on the mechanism that makes a free-market economy so successful: The Price System. Milton explores how The Price System has enabled the United States to develop. For example, producers use it to note a change in demand of product by taking cues from price fluctuations. The higher profit margins serve as an incentive to produce more and indicate which mode of distribution to use for the product. Because of this, people around the world "some who may have never even seen or used a pencil" know to produce more of the component of the pencil in which they specialize. Milton concludes that in this way, millions of people are able to cooperate peacefully on a daily basis.
What's Included in a Lesson:
Discover the comprehensive resources included in our The Price System lesson:
Our carefully designed lesson components work together to create an engaging and immersive learning experience, promoting critical thinking, and academic growth. From thought-provoking preview questions and informative video lessons to interactive activities and assessments, each element supports your students' understanding of key concepts and encourages meaningful discussions. Explore the richness of our Virtual International Field Trip lessons and inspire your students to embark on an exciting educational adventure that will broaden their perspectives and ignite their curiosity.
Lesson Resources:
Our comprehensive Lesson Resources section includes an Educator How-To-Use Guide, providing step-by-step instructions and strategies for seamless lesson implementation. Engage your students with the Student Viewing Guide, which focuses their attention on key concepts and promotes active learning during the video lesson. Extend the learning experience with Lesson Activity One and Lesson Activity Two, offering interactive exercises that reinforce understanding and encourage critical thinking. With these carefully crafted resources at your fingertips, you'll have everything you need to create a dynamic and immersive educational journey for your students.
Online Formative Assessment:
Each lesson has an 11-question formative assessment, ten multiple choice questions, and one written response that will test your students' general understanding of the video. This can be done in class with technology or issued for homework.
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