Overview
The lecture emphasizes the importance of engaging students with active learning activities on the first day of economics, using a negotiation exercise to introduce key market concepts.
First Day Engagement Strategy
- Avoid covering the syllabus on the first day to get students excited for the course.
- Start with an interactive activity, such as a buyer-seller negotiation, to illustrate economic concepts.
- Encourage teachers to share photos or videos of students engaged in such activities.
Economic Negotiation Activity
- Two students simulate a cell phone sale: one is assigned a maximum price ($300), the other a minimum selling price ($20).
- Students negotiate a price, and the result highlights strategies used by buyers (lowballing, criticizing product) and sellers (emphasizing value).
- The concept of consumer surplus (difference between buyer’s max and sale price) and producer surplus (sale price minus seller’s minimum) is introduced.
- Emphasize that both parties benefit in voluntary exchanges, illustrating the principle of free markets.
Expanding the Activity to the Whole Class
- Split the class into buyers and sellers with random price limits and have them negotiate trades.
- Sellers report sale prices to the teacher, and results are discussed.
- Repeat with students switching roles to observe market price patterns and reduction of outliers.
- Introduce a supply shock (fewer sellers) and have students predict and observe its effect—prices increase due to higher demand versus supply.
Takeaways and Learning Outcomes
- Doing interactive activities helps students internalize economic concepts more effectively than passive learning.
- Understanding economic principles, like surplus and market equilibrium, improves decision-making skills.
Key Terms & Definitions
- Consumer Surplus — The difference between what a buyer is willing to pay and the actual price paid.
- Producer Surplus — The difference between the price received by the seller and their minimum acceptable price.
- Equilibrium — The point at which quantity supplied equals quantity demanded in a market.
- Free Market — An economic system where prices are determined by voluntary exchange between buyers and sellers.
Action Items / Next Steps
- Teachers: Try an active learning economic negotiation activity on the first day.
- Students: Prepare for more interactive activities in economics class.
- Teachers: Submit pictures or videos of class activities for a compilation video.
- Optional: Explore additional resources and review packets on ACDC econ.com.