Address: 1000 Peachtree Street NE | Office: 404-498-8061 www.frbatlanta.org

Federal Reserve Bank of AtlantaDOE Social Studies EOCT Workshop

Sherilyn Narker

Economic and Financial Education Specialist

Increasing scores on the Economics EOCT

• Teach the Principles of Economics (Economic Way of Thinking)

• Teach economics vocabulary

• Teach the standards interactively whenever possible

(Simulations, problem-based learning, role plays, etc.)

• Use assessments diagnostically and strategically

(Pre- and Post-Testing, Quick Quiz, Exit Cards, etc.)

Teaching the Principles of EconomicsExample: Gregory Mankiw’s Ten Principles of Economics

PRINCIPLE #1: People Face Trade Offs PRINCIPLE #2: The Cost of Something Is What You Give Up to Get It PRINCIPLE #3: Rational People Think at the Margin PRINCIPLE #4: People Respond to Incentives PRINCIPLE #5: Trade Can Make Everyone Better Off PRINCIPLE #6: Markets Are Usually a Good Way to Organize Economic Activity *PRINCIPLE #7: Government Can Sometimes Improve Market Outcomes *PRINCIPLE #8: A Country's Standard of Living Depends on its Ability to Produce Goods and Services *PRINCIPLE #9: Prices Rise When the Government Prints Too Much Money PRINCIPLE #10: Society Face a Short-Run Tradeoff Between Inflation and Unemployment

Ideas for Teaching the Macro Principles of Economics

PRINCIPLE #7: Government Can Sometimes Improve Market Outcomes

Fed Lesson: Government Spending and Taxes

Key Ideas:

1. Why does the government provide some goods and services even in a primarily market driven economy?

2. What market outcomes is the government trying to improve with specific transfer programs?

Ideas for Teaching the Macro Principles of Economics

PRINCIPLE #8: A Country's Standard of Living Depends on its Ability to Produce Goods and Services (Sub principle: An individual’s standard of living depends on the individual’s productivity within an economy.)

Fed Resource: Gini in a Bottle – Fed essay and student questionsOther Resource: Material World: A Global Family Portrait

Key Ideas:

1. What determines one’s income within a society?2. What leads to income inequality?3. What is the relationship between GDP and the standard of living

in a country?

http://www.npr.org/blogs/pictureshow/2010/08/10/129113632/picturingpossessions

Western Samoa GDP 1994 - $0.1849 Billion

Bhutan GDP 1994 - $0.271 Billion

Mali GDP 1994 - $1.8528 Billion

Mexico GDP 1994 - $420.7756 Billion

Japanese GDP in 1994 – $4,689.075 Billion

United States GDP 1994 – $6,946.975 Billion

Ideas for Teaching the Macro Principles of Economics

PRINCIPLE #9: Prices Rise When the Government Prints Too Much Money (Sub principle: Rising domestic prices lower domestic and international purchasing power of a currency.)

Fed Resource: The Fed Explained…InflationOther Resource: Quiz – Socrative.com; Foreign Exchange SimulationOther Related Fed Lesson: The Free Silver Movement and Inflation

Key Ideas:

1. What is and is not inflation?2. How can monetary policy help inflation?3. How are exchange rates determined?4. What happens to value of a currency when the country’s central

bank uses expansionary/loose monetary policy?

The Fed Explained…Inflation

http://www.frbatlanta.org/news/multimedia/12fedExplained_inflation.cfm

Using Socrative to Assess Student Understanding

Round Number of Auctioned “Bucks”

Price in Riyal

Change from Previous Buck Auctioned

Reason for Change

Round 1 Buck #1

Buck #2

Buck #3

Round 2 Buck #1

Buck #2

Buck #3

Round 3 Buck #1

Buck #2

Buck #3

Foreign Exchange Simulation with Monetary Policy

Follow-up Questions

1.Describe what you observed in round #1.

2. Who was the “supplier” of U.S. Dollars?

3. Who was the “consumer” of U.S. Dollars?

4. Why do we need a foreign exchange market?

5. Who facilitates the foreign exchange market?

6. Describe what you observed in rounds #2 and #3.

Vocabulary Building Activities

From Mazano Laboratories

• Describe how the Federal Reserve (Central Bank) uses monetary policy to promote price stability.

• Explain why government provides public goods and services and redistributes income

Vocabulary Building Activities

Vocab Snatch Game

Fed Tools for Economics

• Econlowdown• Spider Chart• Economic Outlook• Jobs Calculator• Federal Reserve Education

Economics Courses Offered• Opportunity Cost• Comparative Advantage• Supply and Demand• Fiscal Policy• GDP and Pizza• Great Inflation• Inflation• Monetary Policy• Currency Crusaders of Justice• The Story of Unemployment

Aligned Sample Items from EconlowdownGross Domestic ProductIn measuring Gross Domestic Product, market value refers to:

a. the number of goods and services sold during a year.

b. the prices of goods produced but not services provided.

c. the price at which a good or service sells in the market place.

d. the value of sales at all shopping malls, grocery stores and retail outlets throughout the country.

Which of the following is a final good produced by a bakery?

a. cake

b. flour

c. sugar

d. eggs

Currency and Exchange RatesWhich of the following events could cause a currency to depreciate?

a. A country's interest rate falls relative to the interest rates in other countries.

b. A country's interest rate increases relative to the interest rates in other countries.

c. A country's interest rate increases at the same pace of interest rates in other countries.

d. None of the above, because interest rates have no affect on exchange rates.

Monetary PolicyIf inflation were high and rising, the Federal Open Market Committee (FOMC) would likely respond by doing which of the following?

a. Increasing the federal funds target rate and selling government securities

b. Increasing the federal funds target rate and buying government securities

c. Decreasing the federal funds target rate and selling government securities

d. Decreasing the federal funds target rate and buying government securities

Supply and DemandIf producers expect the price of a good to decrease in the future, what will happen to the current equilibrium price and quantity of that good?

a. The equilibrium price and quantity will both decrease.

b. The equilibrium price and quantity will both increase.

c. The equilibrium price will increase and equilibrium quantity will decrease.

d. The equilibrium price will decrease and equilibrium quantity will increase.

Personal Finance Courses Offered• Cards, Cars, and Currency• Credit Cred• It’s Your Paycheck• Opportunity Cost• Paying and Receiving

Interest• Soar to Savings• Time Value of Money• Predicting the Future

Aligned Sample Items from EconlowdownInterest and Credit CardsWhat happens if you pay more than the minimum balance on your credit card each month?

a. The total amount of interest paid will decrease, and the amount of time required to pay off the balance will decrease.

b. The total amount of interest paid will decrease, and the amount of time required to pay off the balance will increase.

c. The total amount of interest paid will increase, and the amount of time required to pay off the balance will increase.

d. The total amount of interest paid will increase, and the amount of time required to pay off the balance will remain unchanged.

Credit WorthinessYour credit score is determined through the following five factors:

a. Age, gender, race, income, and high school GPA

b. Age, level of education, income, length of time with current employer, and ZIP code

c. Payment history, debt amounts, length of credit history, new credit, and credit mix

d. Payment history, income, debt-to-income ratio, years at current address, and criminal record

Risk vs. RewardThe risk-reward relationship says:

a. Risky behavior deserves an award.

b. Investors who choose less risky investments are rewarded by earning higher interest rates.

c. There is an indirect relationship between risk of loss of principal and expected rate of return.

d. There is a direct relationship between risk of loss of principal and expected rate of return.

e. Investors who choose risky investments always make more money than investors who choose less risky investments.

Investment in Human Capital Human capital includes which of the following?

a. The knowledge that people possess.

b. The talent that people possess.

c. The skills that people possess.

d. a, b and c are all correct.

Visually appealing SMART Boards, Print Guides, and Mobile Apps!

Topics Addressed

• Budgeting• Net Worth• Banking• Stocks• Bonds• Credit Worthiness• Debt Management• Entrepreneurship• Risk vs. Return

Katrina’s Classroom Topics

• Investing in Education and Human Capital

• Budgeting/Delayed Gratification

• Emergency Savings• Debt Management &

Credit• Financial Recordkeeping &

Document Storage• Insurance/Risk

Management• Goal Setting

advisorfinancial

Address: 253 Main Street, #169, Matawan Office: 732-591-9131 | Fax: 732-441-7344www.financialadvisor.com

Call today to find your financial future.800-555-5555

advisorfinancial

Address: 253 Main Street, #169, Matawan Office: 732-591-9131 | Fax: 732-441-7344www.financialadvisor.com

Model Lesson: Teen Unemployment – What’s the Real Story?

Program Title URL

Building Wealth http://www.dallasfed.org/educate/pfe.cfm?tab=1##dallastabs

Econlowdown https://bts.stlouisfed.org/econ_ed/online_learning/index.php?page=class&cid=7743

Katrina’s Classroom http://www.frbatlanta.org/edresources/classroomeconomist/

Personal Finance 101 Chats http://www.stlouisfed.org/education_resources/personal-finance-101-chats/

It’s Your Paycheck! http://www.stlouisfed.org/education_resources/its-your-paycheck-curriculum-unit/

Fed Personal Finance Programs for High School