Exploring How Institutions Shape Prosperity
Unit 4 · Lesson 4.2 · Last updated June 2026
A 45-minute lesson where students evaluate policy proposals, participate in a card-based simulation to experience how institutional rules shape economic outcomes, and connect those findings to real-world research on institutions and prosperity.
Overview
Students evaluate policy proposals aimed at economic development, then participate in a whole-class simulation using a standard deck of cards to experience how the "rules of the game" — effective or ineffective institutions — shape a firm's ability to prosper. Following the simulation, students connect their experience to real-world research through a short reading and a podcast excerpt tied to the 2024 Nobel Prize in Economics. Note: Read the Simulation Overview before teaching this lesson — but do not share information about the countries or institutional effectiveness with students before or during the simulation.
Learning Objective
- Describe the relationship between the efficacy of institutions and standard of living.
Materials
- Instruction Slides (display during class period)
- Policy Proposals pp. 5–6 (1 copy per student — collected and held until Lesson 4.14)
- Unit 4 Overview p. 7 (1 copy per student — consider printing on colored paper for easy reference throughout the unit)
- Simulation Overview p. 8 (1 copy for educator reference)
- 1 standard deck of 52 playing cards (spades and face cards removed)
- Student Handout pp. 9–10 (1 copy per student)
Optional
- Suggested Responses p. 11 (1 copy for educator reference)
- Unit 4 Key Terms (digital access or 1 copy per student)
Lesson Sequence
Slides 2–7
- Display Slide 2 and distribute 1 copy of Policy Proposals to each student. Tell students they will revisit their responses at the end of the unit and reflect on how their thinking has changed. Allow approximately 5 minutes to individually complete the instructions. (Additional educator tips and suggested answers are in the notes section throughout Instruction Slides.) Collect and hold all Policy Proposals until Lesson 4.14.
- Advance to Slide 3 to debrief the activator. Click to reveal factors that contribute to differences in rankings.
- Progress through Slides 4–5. Reinforce that although economists generally agree on which factors determine national wealth, there is no universal agreement on which are most important — a successful approach for one country cannot simply be replicated in another.
- Display Slide 6 and distribute 1 copy of Unit 4 Overview to each student. Explain that it serves as a roadmap for the unit, containing all learning objectives and summative assessment descriptions. Distribute Unit 4 Key Terms if using. Draw attention to the summative assessment — throughout the unit students will learn more about key determinants underlying the policies they just evaluated, and at the end they will apply the principles of economic thinking to make policy recommendations. Encourage students to keep Unit 4 Overview in an accessible location.
- Proceed to Slide 7 and identify the learning objective for the lesson.
Slides 8–38
- Advance to Slide 8. Tell students they will participate in a simulation. Place students into pairs (groups of 3 if needed) and randomly distribute 1 playing card to each pair. Pro Tip: Ensure variety by distributing approximately equal numbers from each of the 3 suits and a mix of even and odd-numbered cards. Ideally, pairs with different suits are seated near one another. Do not tell students what the suits represent.
- Display Slide 9 and distribute 1 copy of Student Handout to each student. Allow approximately 2 minutes to complete the instructions on the slide.
- Proceed to Slide 10 and read the scenario aloud.
- Advance to Slide 11 to reveal outcomes for odd-numbered firms in each country group. Students should read their outcome closely, skim others, and make a quick prediction of the impact on prosperity points. Click to reveal the points gained or lost. Note: Reading outcomes aloud is recommended when time permits — the debrief will clarify differences between countries regardless.
- Advance to Slide 12 and repeat for even-numbered firms.
- Display Slide 13. Instruct students to record their reactions, points gained or lost, and running total on their handouts. Remind students to subtract if there is a minus sign and add if there is a plus sign.
- Advance through Slides 14–33, repeating Steps 8–11 for each scenario.
- Proceed to Slide 34. Ask firms in each country to report their final prosperity points and how they felt about the "rules of the game," starting with Heart Country.
- Display Slide 35. Allow approximately 3 minutes for pairs to discuss the debrief questions.
- Progress through Slides 36–38. Call on students from relevant countries to share examples from the simulation. Click to reveal additional information. Emphasize the differences in institutional rules across countries and their systemic effects on firms.
Slides 39–43
- Progress through Slides 39–40. Tell students they will connect the simulation to the real world. Direct students to answer the question on Slide 40 with a peer (~30 seconds), then call on volunteers from different countries. Clarify as needed and emphasize the connection between effective institutions, economic health, and standard of living. (Reference the "Connection" section of Suggested Responses as needed.)
- Display Slide 41. Direct students to discuss the question on the slide. After ~30 seconds, click to reveal correct responses. Note the correlation between countries' standard of living and institutional efficacy.
- Proceed to Slide 42. Emphasize that businesses can succeed or fail in any country, but firms in countries with ineffective institutions face greater systemic challenges.
- Advance to Slide 43. Tell students to follow the instructions on the slide. Allow approximately 6 minutes, then debrief. Pro Tip: It is helpful to point out that because property rights are so strong in the U.S., most students can't imagine a system in which ownership of a car or home might be challenged — but that is not the case everywhere. Reference the "Reading" section of Suggested Responses as needed. If tight on time, assign the reading and summarizer as out-of-class activities.
Slides 44–46
- Progress through Slides 44–45. Use the 2024 Nobel Prize in Economics as evidence of ongoing research into why some countries are richer than others — the prize was awarded to three economists whose work directly addresses Unit 4's essential question.
- Display Slide 46. Allow students a moment to read the "Summarizer" question on Student Handout. Tell them to consider it as they listen to a ~4-minute audio clip of The Indicator from Planet Money. Direct students to discuss and then write their responses on Student Handout.
- Collect handouts and review summarizer responses for misconceptions or gaps. Address at the start of the next lesson. (Reference the "Summarizer" section of Suggested Responses as needed.)
Aligned Standards
Voluntary National Content Standards in Economics
What Educators Are Saying
It was fun hearing pairs within groups moan or cheer when the points were revealed. I appreciate the emoji reactions as well because it further engaged the students. I love that teachers just need a deck of cards for this simulation.
Students enjoyed this simulation. I was nervous because it was after their midterm and a few days before spring break. Fortunately, no one complained that I was making them "do work."
My students were 100% engaged. Some of my most outspoken students received the hearts cards and were VERY upset with their situations — that played into the storyline even more than I anticipated. I loved the approach and the slow play of learning. Brilliant!