Unit 2 takes students deeper into microeconomic principles, including supply and demand, market structures, market failure, labor markets, and income inequality. These high school economics lesson plans use simulations, real-world data, and collaborative activities to help students understand how markets work and what happens when they don't. Lessons build sequentially on Unit 1 concepts throughout.
How to use this unit
Lessons build on one another and are designed to be taught sequentially. They can also be used as standalone lessons.
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2.1 Coffee Market
Engaging in a coffee market simulation, students learn how buyer-seller interactions determine prices in a perfectly competitive market. Watch a short video tutorial.
"My students loved this lesson. They came up with in-depth observations and made connections to real world markets." — Julie A., AZ
2.2 Law of Demand
Using data from the Coffee Market Simulation, students explore the law of demand and practice illustrating changes in quantity demanded.
"There is a lot of practice embedded throughout the lesson. This seemed to help them grasp the concept that price changes don't change overall demand." — Sara H., Alabama
2.3 Introduction to Firms
Students operate a competitive hat firm to prepare for mastering the law of supply.
"Students had fun, and all kinds of learning came up. Seniors at 7:20 am, so that is huge." — Sue M., WA
2.4 Law of Supply
Students explore how prices affect the quantity supplied and practice illustrating changes in quantity supplied.
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2.5 Shifts in Demand
Students identify factors that increase or decrease demand and practice shifting the demand curve, explaining the resulting change in market equilibrium.
"The relevant, realistic examples of shifters of demand. So often examples are generic and can make it difficult for students to see the real-life relevance of the concepts." — Sharon S., WI
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2.6 Shifts in Supply
Students identify factors that increase or decrease supply and practice shifting the supply curve, explaining the resulting change in market equilibrium.
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2.7 Review To Date
Through station rotations, students review key concepts from Units 1 and 2 to prepare for an assessment.
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2.8 Assessment Preview
Students prepare for a Unit 2 summative assessment by scoring two samples using the rubric.
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2.9 Analyzing a Product Market
In this summative assessment, apply key microeconomic concepts to analyze a product market model.
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2.10 Introduction to Market Failure
Through a simulation on the tragedy of the commons, students explore market failure and the government's role in addressing it.
"Students definitely understood the tragedy of the commons following this lesson, and were discussing it well when answering questions throughout the class!" — Lianne K., NJ
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2.11 Public Goods
Students learn about public goods, the free-rider problem, and how the government provides public goods to address market failure.
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2.12 Externalities
Exploring positive and negative externalities, students discuss possible government interventions to remedy these market failures.
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2.13 Market Structures
Students compare four market structures and the outcomes for consumers and firms in each structure.
"The lesson was a really helpful way to have students understand/apply the different types of market structures that exist. [Students] liked it, especially the sorting part." — Erica S., GA
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2.14 Government Interference or Intervention?
Students explore different perspectives on government involvement in markets through a simulated social media conversation.
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2.15 Labor Markets
Students study factors influencing wages and how labor market supply and demand shifts affect equilibrium wage rates.
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2.16 Exploring the Minimum Wage
Through interactive activities, students analyze arguments surrounding the federal minimum wage and assess their opinions. Watch a short video tutorial.
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2.17 Income Inequality
Using manipulatives and data analysis, students explore income distribution and government redistribution programs. Watch a short video tutorial.
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2.18 Connections Across Units: Part 1
Students link concepts from Units 1 and 2 to an economic issue of their choice, preparing for the summative assessment.
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2.19 Connections Across Units: Part 2
Continuing to link concepts from Units 1 and 2 to current economic issues, students prepare for the summative assessment.
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2.20 Economics in Plain Sight
Students complete an in-class assessment identifying and analyzing economic concepts from real-world sources. Watch a short video tutorial.
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