Econo Teacher’This guide accompanies the cight programs in the Economix series. Economix is a co-production of the National Film Board of Canada and the Kativik School Board in co-operation with the Canadian Foundation for Economic Education. We wish to thank the Royal Bank of Canada and Canadian Pacific Ltd. for their financial support. ISBN: 0-7722-0686-4 ©1996 National Film Board of Canada P.O, Box 6100, Station Gentre-Ville Montreal, Quebec 3H5 ed in CanadaEconomix AN ECLECTIC APPROACH MIX n. A blend of different ingredients. An innovative and exciting pedagogical tool in the form of eight:video programs covering many of the major concepts in senior secondary economics courses. The series comes on four videocassettes, each containing two programs with a running time of approximately 20 minutes each.Volumé-1 - Program 1: Needs and Wanis Major Theme: As our unlimited needs and wants conflict with ‘our limited resources we must make responsible choices. ‘Major Concepts: Needs and wants, goods and services, types of fesources, trade, barter, money. Yolume.1 - Program 2: The Market Major’ Theme: Markets involve buyers and sellers exchanging goods and services at prices influenced by supply and demand. Major Concepts: Supply and demand, buyers and sellers, reventie and profit, market competition, prices, a marketplace, money. Volime:2 - Program 1: Production Major Theme: An enterprise must continuously improve its effi- clency and productivity in order to make a profit and face its competition. ‘Major Concepts: Private and public enterprises, multinationals, entrepreneurs, co-operatives, productivity, profits and costs. Volume 2 - Program 2: Consumption Major Theme: Consumers need to make informed choices concerning their personal finances. ‘Major Concepts: Consumer decisions, income, choices, trade- offs, advertising, credit, budgeting, consumer protection. Volume 3 - Program 1: The Banking System ‘Major Theme: Financial institutions play a key role in économies. Major-Concepts: Saving and borrowing, banks and credit unions, trust companies, interest rates, inflation, bank loans, bank deposits. Volume 3 - Program 2: The Role of Government ‘Major.Theme: Governmenis try to achieve many economic €oals, including growth and stability. Major:Concepts: Government programs and services, economic stability, economic cycles, fiscal policies, expansion, recession, debt. Volume 4 - Program 1: International Trade Major-Theme: In a global economy, freer trade brings both advantages and challenges to an economy. Major-Concepis: Specialisation, comparative advantage, inter- national competition, trade barriers, tariffs, quotas, free trade. Volume 4 - Program 2: Tomorrow's Challenges ‘Major Theme: Canada faces an uncertain future; the outcome vill depend on the actions and decisions taken now. Major-Goncepts: Government action, public opinion and atti- tudes;education, training, technology, public debt.THE PEDAGOGICAL APPROACH: eis dynamic, innovative, stimulating and humorous; * uses clear and simple language at the students’ level; * uses meaningful illustrations to support the content; ¢ depicts situations from teenagers’ daily lives. YEECONTENT A wou you can show the programs in any sequence, they were designed Lo be yiewed in their packaged order, with the exception of the eighth video, which can be shown al either the beginning or the end of the year. The first seven videos are all structured in the same way. Each program consists of three 3- or 4-minute clips sepa- rated by an animated question. The three clips are like three acts of the same play linking Logether the different economic concepts presented in each program. The eighth program consists of two clips offering two different visions of Canada’s socio-economic future. The open-ended structure of the programs allows the teacher lo intervene after each clip to provide additional details or to have students do specific activities. Each video has a central idea which can be represented graphically. For example, in the first video of Volume 1, Needs and Wants: TENSION (unlimited) (limited) RESOLUTION Since we have unlimited needs but only limited resources, we have to make choices,A MESSAGE FOR THE TEACHER: ¢ The series employs the latest image-processing véch- nology and an eclectic mix of genres and styles in order to capture and keep your students’ attention. The series can be used as an overview to introduce con- cepts or as a wrap-up, and can also serve as a review al the end of the term or year. ® TV stameilvira Kurt appears in a comedy sequence in eac, . The absurd stories she recounts and her reflection: the economy are based on situations from daily life and relate to concepts presented in the sled classroom Guide, we recom- pS 2 items al * In preparation for some of the s! activiti resented in this Teach mend a order class sels of 0 ing of Lhe lerm to have U 1. Application forms for am: the associated contract: 2. Information pamphlets from a a trust company detailing ty of services and their costs; 3. Information from your provincial consumer protection nian nde rights and laws; 4. Blank cheques ai ank deposil slips.Scenario Human beings have many needs and wants bul can- not satisfy all of themas we have limiled resources which are unequally distributed around the world. To better meet our needs and wants. we have to make choices regarding the allocation and use of our resources. TENSION (unlimited) — (limited) RESOLUTIONClassroom Activities 1) Have the students brainstorm a list of factors that influence our perceptions of our needs and wants. e.g. advertising, peers, parents. Why are these influences effective? 2) Ask the students lo generale two lists under the following headings: e needs of a typical Lleenager; « wants of a Lypical teenager. Did the students agree on all of the items on the two lists: Ask the students to justify their decisions as to. what is a need or a want. 3) Over the cenlurics money has been made of many things: gold, bronze. silver, paper, copper. How did people decide what lo use for money? Additional Resources From the Canadian Foundation for Economic Educ: i Article: Keanomics: The Subj in Vogue But What fs It? Booklet: The Big Picture (How our economy fits logether)Scenario To satisty their needs, people make exchanges. This takes place in markets where buyers and sellers interact Lo exchange goods and services. The market prices of goods and services are based on the relationship between the demand expressed by the buyers and the supply as determined by the producers. The market price, which reflects a balance between supply and demand, promotes exchanges. ee RESOLUTION Classroom Activities READING A MARKET ENVIRONMENT 1) The enclosed mall is an example of a market situation where people are encouraged to exchange their money for various goods and services. The sellers try to create an environment where people will spend time and money. How is this accomplished? Discuss such things as:2) 3) ® the shopping atmosphere — physical and psychological; ® the entertainment factor; * available conveniences; e geographical location in the community; « layout of the shopping environment; © variety of the goods and services offered for sale; * how it appeals to your five senses: slent, sound, taste, smell, touch; the gender factor: what attracts men and women to the mall? What factors influence the price of a good or service in the marketplace? ¢.g.: * tomatoes in Canada in February; © CDs in Lodgepole, Alberta; * car wheel alignment in Vancouver, British Columbia; « dental filling in Charlottetown, Prince Edward Island. — Ask the students to suggest two items they would. normally buy within. a week. Overa period of afew days have them survey their community to determine all of the locations where these items are sold and what the selling prices are in the multiple locations. Was there a price variation either over time and/or over geography? Why or why not? Additional Resources From the Canadian Foundation for Economic Education: Canada’s Labour Market - A Teaching KitScenario Goods and services are produced by different types and sizes of businesses. Businesses are created by people with initiative and leadership who are willing to take risks. They have to manage natural, capital and human resources effectively and efficiently in order Lo compete in the marketplace and earn prof- ils. By improving their productivily and efficiency, businesses can improve their market performance. ; ; wa : , RESOLUTION Classroom Activities 1) How could a rock band use the concepts of efficiency, productivily and cost-effectiveness in order to increase its success and profits? Role-playing: You are a member of the board of directors of a business that makes vegelable-based hair dyes which3) are very popular al Halloween. However, there are supply problems since some of the plants that go into these products are facing extinction. The business is facing a big challenge, (a) What is this challenge? (b) What can the business do to meet the challenge and continue to be successful in the future? Have the students define and provide examples of the following types of enterprises: * sole propriclorships; * partnerships; ® corporations: multinationals; * co-operalives; public corporations; * nol-for-prolil organizations; * franchises. Discuss how these types of businesses might be appro- priate for different industries, products or services. Additional Resources Videos from the National Film Board of Ganada: “We're the Boss!” 0189 112 Cold Pizza 0172 092 Blowhard 0178 075 From the Canadian Foundation for Keonomic Education: Booklet: Lnatrepreneurship: A Primer for Canadians Video and CD-ROM: Planning for Success (\ project of The Canadian Bankers’ Ass sjation)Scenario Our desire to endlessly consume to salisfy our wants is restrained by our limited incomes and assets. In order to increase Lheir sales. businesses improve the quality and attractiveness of their prod- ucts, ry to forecast trends in consumption, create hew wants, and advertise, By drawing up a budget, managing their finances effectively and informing themselves, consumers can make wise choices and avoid falling into debt. TENSION (limited) (unl RESOLUTION Classroom Activilies !) How can consumers directly or indirectly exert pressure on businesses Lo gel them to improve the qualily of their products? (e.g. boycotts, negative publicity, dealing through the Office of Consumer Affairs or the Better Business Bureau, other provincial ministries or organisations.)2) 3) Many consumers are seduced by the “buy now, pay later” slogans in the marketplace. How easy is it to get a major credit card? Examine both an application form and a contract with the students. What exactly is involved in acquiring and keeping a credit card? How much does it really cost to buy a compact disc player on credit and to pay it off on the credit card over six months? [Lave the students do the mathematics and compare the cost over lime. What are Lhe advantages and disadvantages of credit? Markel research project: The school has been given $1.500 to buy new equipment for the physical education department. The school administration has asked the student council lo make recommendations on how to spend this money. To add weight lo ils recommendations, the student council has asked the economics slLudents to conduct a market survey of the student body. Specifically, they want Lo know the answers to the following questions: e What equipment would the students like to have? e Do the male and female students express different needs and wants in equipment? If so, what are they? ¢ Do students in different grades have different needs and wants in equipment? Make purchase recommendations based on the results of the survey and the budget of $1,500. Don't forget to make allowances for taxes and delivery charges. Additional Resources Video from the National Film Board of Canada Where Credit Is Due 9190 012 From the ©. an Foundation for Keonamic Education: Booklet: Money and YouthScenario Money saved by individuals can be safely deposited in financial institutions to carn interest. ‘The financial institutions use these savings to offer loans to individuals and businesses, Investments are the driving force of economic growth and development, When the economy is booming, and borrowing and spending levels are high, large amounts of money end up in circulation, thus spurring inflation. The Bank of Canada may intervene to reduce inflationary pressures by raising interest rales in order Lo slow down consumption and business spending, and ease inflation. TENSION ™. RESOLUTIONClassroom Activities 1) Savings are a key source of funds for the investments that boost a country’s economic growth and development. Describe how financial institutions act as intermedi $s between savers and borrowers. Why do financial institutions need lo be regulated? Who does it and how? How do financial institutions create profits for their stockholders? Using promotional material from the banks and trust companies in your community, compare the costs of services such as maintaining a chequing account, paying ulilily bills, or writing cheques on a combination chequing/savings account. 2) Through their interior and exterior architecture, the business environment that they create, and the personnel thal they hire, financial institutions (banks, co-ops, trust companies, credit unions) make a stalement about their enterprises. What image and role do they project? Which segments of sociely scem particularly attractive to banks? (You can refer to Volume 1, Program 2, Activity #1 for some crilcria for this activity. | Film Board of Ganada: nancial Career 0162 010 Future Block 0187 010 From the Canadian Foundation for economic Education: Booklet: Money and Monetary Policy in CanadaScenario Since the Greal Depression of the 1930s, governments have tended to intervene in the economy, Today governments collect taxes, which they use for a wide range of services and programs. The federal government implements fiscal and monetary policies to stabilize fluctuations in economic activity. Rapid changes in the economy are challenging traditional government programs and policies. Governments are further hindered by high levels of debt and thus they are actively looking for new ways Lo respond. a ae ~ RESOLUTION> Comment ™ «In this video, more — than a minute is spent parodyving government Classroom propaganda designed Lo get Activilies ‘Canadians to be more productive, in order to pull the country out of an oe 1) The govern- | eeonomic depression. The text, visuals © ment funds and soundtrack call on the citizens’ social pro- national pride, solidarity and unity. grams from the ‘this passage should be viewed as a taxes we pay caricature of the government's — 2) 3) Additional Resources From the Canadian Foundation for Economic Education: Booklet: The Big Picture ‘Teacher's Kil: ( yone has lo ; use of information share” (first be media. clip). Set up a class =<) debate on the public’s perceived unequal sharing of the tax burden belween individuals and businesses. Have the students play the following roles ful small business; © the owner of a suece: ea bank president: «a welfare recipient: ea middle manager in a multinational corporation: * a homemaker: ¢ an opposition party politician. What government programs, goods and services does your school benefit from? Does your school pay any laxes — properly, sales, GST? Why or why nol? How did Canada accumulate its current national debt? What are the consequences of this debt on the country as a whole and on Canadians as individuals? How is the federal government responding to the challenges posed by the debt level? da/L.S. BORDER ProjectScenario Kach country takes advantage of its available resources by specializing in specific types of production based on its areas of comparative advantage. Producers and governments in countries try to make rational and effective use of resources lo produce goods and services at competitive prices for markets around the world. All countries benefit from participating in international trade. Some countries and groups favour freer world-Lrading conditions with fewer or no trade barriers. Others favour more protectionist measures. In a global economy, trade can stimulate economic development and can help improve some of the weaker economies. TENSION \ RESOLUTIONClassroom / Activities giudenis by giving them a brief summary of - 1) 2) 3) Comment * The video takes the form of an investigation, whic! ~ students will have to watch clos _ inorder to understand the reasoning — and to follow the central idea. Before the “screening, the teacher could prepare the plot: an investigator has to determine Imagine | atime “whettier Canada would do better by adopting when a freer trade policy, He is not convinced by the arguments of his colleague Helena, — "who is sure that free trade is a good | exchange with idea. He checks things out. ie foreign countries _ and decides for : and exists as an “a tlimeelt autarchy (self-sufficient nation). What habils, services or consumer products would you have Lo give up in the short term? What habits, services or consumer products would you have lo give up in the long term? What impact would this have on Canada’s economy and the lives of individual Canadians? Canada halts all How have Canada’s major imports and exports changed since 1850? How have technological advances as well as international geopolitical changes affected the products and services that Ganada trades wilh other countries? Have the students research the trade barrier tariffs that exist between the Canadian provi Divide the class into groups so that there is a leam representing each of the provinces al a National Trade Conference. The provincial delegations must negotiate with each other to reduce trade barriers and increase their advantages in the area of interprovincial trade. sand Additional Resources From the Canadian Foundation for Reonomice Education: Booklet: The Canadian Econonty; Teaching Kil: The BRIDGES Project Adjusting to Global Changeiid Volume 4 = Tomorrow's Ck Scenario This video presents (WO scenarios describing Ganada’s socio-economic situation in the year 2010. The first scenario is pessimistic. The major Canadian cities are racked by riots. The country is crushed by debt and has to make drastic cuts in government services fo avoid being taken over hy the World Bank. A grim flashback shows what led fo this crisis. The second scenario is optimistic. Canada has embraced the global economy and overcome its debt problems, Students completing the economic education curriculum in the year 2010 have four minutes to consult a data- base on the Internet and answer a question that constitutes their final exam: “Will: Canada bea member of the new.G7?”Classroom Activities !) 2) 3) Knowledge will be one of the main resources of the 21st century, Explain what this means and identify specific production sectors that will be affected. Given the potential changes in Canada’s resources for the 21st century, what. recommendations do the students have for Canadian education and training needs? Have the students prepare an advertising campaign that will encourage Canadians to buy domestic products and spend their vacation dollars in Canada in order to boost the economy. Should the advertising campaign succeed, what will the economic consequences be for individual Canadians? Additional Resources Videos from the National Film Board of Canada: AL the Crossroads 0187 087THE FILM CONTENT: ® covers major concepts in senior secondary economics courses; e helps students understand the interaction of economic phenomena.