Econ 101

1. Set Focus 
Pose this essential question: What role does the economy play in your life?

2. Read and Discuss 
Have students read the article, marking key ideas and questions. Then ask them to answer the following questions, citing text evidence:

• What is one advantage that big businesses have that small businesses do not? Which is more affected by an economic slowdown? Explain. (Big businesses often can raise money from investors and usually have more cash on hand. Small businesses are often more affected by economic slowdowns because they usually don’t have a lot of extra cash as a cushion.)

• What does it mean to buy a stock? How do investors make and lose money from stocks? (Buying a stock means you’re buying a small piece of ownership in a company. If the company does well, the value of the stock increases. If the company does poorly, the resale value of the stock decreases.)

• What is a “budget deficit”? What is the relationship between the budget deficit and the national debt? What do you think could happen if the nation were to default on its debts one day? (A “budget deficit” is the amount of money that the government spends beyond what it takes in from taxes. The government has to borrow money to cover the deficit, which adds to the national debt. Students’ answers about debt default may vary, but might include the possibility that the government could have trouble borrowing money in the future, might have to raise taxes, or might have to deeply cut spending on important programs.)

3. Core Skill Practice
Assign, print, or project the activity Find the Evidence. Have students use it to answer questions by citing textual evidence.

4. Writing Prompt
Select a section of the economy and write a brief essay on how your actions can affect it. 

5. Quiz
Assess comprehension with the quiz.

6. Interactive Game
Challenge students (either individually or in groups) to create a sustainable federal budget and avoid winding up with a deficit by playing The Fiscal Ship (fiscalship.org).