Introduction to Economics Free Enterprise & Property Rights

Goals & Objectives

Students will analyze the characteristics of a market economy
Students will observe how property rights affect behavior
Students will compare how resources are used when property rights are clearly
defined and when they are not
Students will explain the basic principles of the U.S. free enterprise system
Students will identify the role of the consumer in the U.S. free enterprise system
Students will describe the role of the government in the U.S. free enterprise system

California State Content Standards
12.1.4 Evaluate the role of private property as an incentive in conserving and improving
scarce resources, including renewable and nonrenewable natural resources.
12.1.5 Analyze the role of a market economy in establishing and preserving political and
personal liberty (e.g., through the works of Adam Smith).
12.2.3 Explain the roles of property rights, competition, and profit in a market economy.

Common Core Literacy Standards
CCSS.ELA-Literacy.WHST.11-12.10 Write routinely over extended time frames (time for
reflection and revision) and shorter time frames (a single sitting or a day or two) for a
range of discipline-specific tasks, purposes, and audiences.
CCSS.ELA-Literacy.RH.11-12.7 Integrate and evaluate multiple sources of information
presented in diverse formats and media (e.g., visually, quantitatively, as well as in words)
in order to address a question or solve a problem.
Lesson Introduction (Anticipatory Set/Hook/Accessing Prior Knowledge) Time:
Ill engage the class in a short discussion about what they think The Land of Opportunity
means and to share any examples of people they know whove started their own business
and their reasons for doing so. Ill also ask them to think of any famous examples of
someone taking a small idea and creating an empire.

Vocabulary (Content Language Development) Time:
The vocabulary terms will be written into PowerPoint slides which will be projected on the
screen so all students can see them. I will also verbally explain their definitions and use
some examples to help students more clearly understand the concepts. The students will
write the vocabulary terms and formal/simplified definitions and examples in their notes.
Terms include: profit motive, open opportunity, private property rights, free contract,

voluntary exchange, competition, interest group, public disclosure laws, and public
interest

Content Delivery (Method of Instruction) Time:
I will give a brief PowerPoint lecture on the topic of the basic principles of free enterprise
and the key characteristics that make up free enterprise. I will also explain the consumers
role in free enterprise as well as the governments role through public disclosure laws and
public interest.
I will go over vocabulary as it arises within the lecture and will elaborate on all vocabulary
and concepts with several real world examples in order to connect it with the students
lives. I will also ask comprehension questions throughout the lecture in order to monitor
student progress.

From there I will begin an activity to demonstrate property rights in a market economy. I
will review the characteristics of a market economy (which the students have previously
learned) and ask the students to identify for me what makes a market economy different
from a command economy like Cuba. Then I will ask for 10 students to volunteer to get up
to help participate in the activity and instruct the rest of the students to pay close attention
to their behavior during the activity and to make any pertinent notes. I will explain that in
round 1 I will scatter 50 paper clips which will represent natural resources such as fish,
trees, or whales. In the first 30 seconds, students will receive 1 point per paper clip they
pick up. In the second 30 seconds they will receive 2 points per paper clip they pick up.

After round 1 is finished I will tally up their points. In round 2, only 9 students will be
needed to participate in the activity. I will ask each student to stand in one of the boxes
outlined in tape on the ground. I will explain that I am going to scatter the paper clips again,
only this time the students are only allowed to gather the paper clips that fall within the
boundaries of their box. Any paper clips that fall directly on boundary lines or outside of
the clearly defined boundary lines are fair game for any student to pick up. The same rule
applies for the first 30 seconds they will receive 1 point per paper clip and in the second 30
seconds they will receive 2 points per paper clip. I will tally their points once the round is
over and ask the students to sit back down.

Finally, I will display some follow-up questions based on the activity on the PowerPoint
and ask all the students to record their responses as Assignment #1 for their unit packet.
Once they are finished recording their answers, we can discuss them as a whole class.

Student Engagement (Critical Thinking & Student Activities) Time:
The students will take notes during the lecture, making sure to record examples and
vocabulary. In addition, they will respond to any comprehension questions given during
the lecture. The 10 student volunteers will participate in the property rights activity while
the rest of the students will observe how the 10 students behave in the activity and will jot

down any pertinent notes about what they do. Once the activity is over, all the students will
answer some follow-up questions and we will discuss their responses as a class.

Lesson Closure Time:
To wrap up the lesson I will explain that people have different incentives when property
rights are clearly defined and that resources are used in a manner most valued by society
when there are property rights. Ill also explain that people have incentives to act in their
self-interest, which usually works to societys benefit. However, when property rights are
not clearly defined, the government may pass laws that decide who has the right to the
property.


Assessments (Formative & Summative)
Student responses during discussion/question portions will serve as an informal
formative/progress monitoring assessment. I will also be roaming around the room to
informally assess student responses to their activity; this will also serve as a progress
monitoring assessment.

Accommodations for English Learners, Striving Readers and Students with Special Needs
These students will be provided with a printed copy of the lecture notes and a graphic
organizer of the vocabulary.

Resources (Books, Websites, Handouts, Materials)
Ch. 3 Sect. 1 of Prentice Hall Economics: Principles in Action, paper clips, PowerPoint