Grade 03 Unit 11 Exemplar Lesson 01: The Language of Economics Grade 3 Unit: 11 Lesson: 01 Suggested Duration: 3 days This lesson is one approach to teaching the State Standards associated with this unit. Districts are encouraged to customize this lesson by supplementing with district-approved resources, materials, and activities to best meet the needs of learners. The duration for this lesson is only a recommendation, and districts may modify the time frame to meet students needs. To better understand how your district may be implementing CSCOPE lessons, please contact your child s teacher. (For your convenience, please find linked the TEA Commissioner s List of State Board of Education Approved Instructional Resources and Midcycle State Adopted Instructional Materials.) Lesson Synopsis Students learn about Mary Kay Ash, an example of an entrepreneur who found great success in the free-market system. Students learn how economic concepts are related. TEKS The Texas Essential Knowledge and Skills (TEKS) listed below are the standards adopted by the State Board of Education, which are required by Texas law. Any standard that has a strike-through (e.g. sample phrase) indicates that portion of the standard is taught in a previous or subsequent unit. The TEKS are available on the Texas Education Agency website at http://www.tea.state.tx.us/index2.aspx?id=6148. Skills TEKS 3.6 Economics. The student understands the purposes of earning, spending, saving, and donating money. The student is expected to: 3.6A Identify ways of earning, spending, saving, and donating money. 3.6B Create a simple budget that allocates money for spending, saving, and donating. 3.7 Economics. The student understands the concept of the free enterprise system. The student is expected to: 3.7A Define and identify examples of scarcity. 3.7B Explain the impact of scarcity on the production, distribution, and consumption of goods and services. 3.7C Explain the concept of a free market as it relates to the U.S. free enterprise system. 3.8 Economics. The student understands how businesses operate in the U.S. free enterprise system. The student is expected to: 3.8B Explain how supply and demand affect the price of a good or service. 3.8C Explain how the cost of production and selling price affect profits. 3.8E Identify individuals, past and present, including Henry Ford and other entrepreneurs in the community such as Mary Kay Ash, Wallace Amos, Milton Hershey, and Sam Walton, who have started new businesses. 3.17 Social studies skills. The student applies critical-thinking skills to organize and use information acquired from a variety of valid sources, including electronic technology. The student is expected to: 3.17E Interpret and create visuals, including graphs, charts, tables, timelines, illustrations, and maps. 3.18 Social studies skills. The student communicates in written, oral, and visual forms. The student is expected to: 3.18A Express ideas orally based on knowledge and experiences. 3.18B Use technology to create written and visual material such as stories, poems, pictures, maps, and graphic organizers to express ideas. GETTING READY FOR INSTRUCTION Performance Indicators Grade 03 Unit 11 PI 01 Create a set of vocabulary cards (Frayer model) for economic terms. Choose 5-10 cards to arrange on a poster to show relationships between the words. Use the words as you explain your arrangement to a classmate. Standard(s): 3.6A, 3.6B, 3.7A, 3.7B, 3.7C, 3.8B, 3.8C, 3.17E, 3.18A, 3.18B ELPS ELPS.c.4D, ELPS.c.4G Key Understandings In an economic system a variety of factors work together and influence each other. How does supply and demand affect the price of a good or service? Last Updated 05/13/13 Print Date 06/20/2013 Printed By Karen Johnson, MIDLAND ISD page 1 of 11
Unit: 11 Lesson: 01 Suggested Duration: 3 days How does the cost of production and selling price affect profits? Why is entrepreneurship important to creating a business? Why donate? Vocabulary of Instruction interdependence economy free enterprise system scarcity production distribution entrepreneurship consumption donating Materials Refer to Notes for Teacher section for materials. Attachments All attachments associated with this lesson are referenced in the body of the lesson. Due to considerations for grading or student assessment, attachments that are connected with Performance Indicators or serve as answer keys are available in the district site and are not accessible on the public website. Handout: Mary Kay Ash (1 copy per student) Teacher Resource: Mary Kay Ash KEY Handout: Money in the Free Market (from Unit 10 Lesson 1) Handout: Frayer Model Templates (3 copies per student) Teacher Resource: Frayer Model KEY Handout: Connecting Concepts Arrows Resources None identified Advance Preparation 1. Become familiar with content and procedures for the lesson, including economic concepts and proper use of technology to display concepts. 2. Refer to the Instructional Focus Document for specific content to include in the lesson. 3. Select appropriate sections of the textbook and other classroom materials that support the learning for this lesson. 4. Preview materials and websites according to district guidelines. 5. Prepare materials and handouts as necessary including an Anchor Chart of economic terms. Background Information In previous lessons students have learned about basic economic concepts and the free enterprise system. Additionally, students gained an understanding of economic concepts at work within the free market system. The teacher will need to be familiar with the significant individual, Mary Kay Ash, as she will be the focus of this lesson. GETTING READY FOR INSTRUCTION Teachers are encouraged to supplement and substitute resources, materials, and activities to meet the needs of learners. These lessons are one approach to teaching the TEKS/Specificity as well as addressing the Performance Indicators associated with each unit. District personnel may create original lessons using the Content Creator in the Tools Tab. All originally authored lessons can be saved in the My CSCOPE Tab within the My Content area. INSTRUCTIONAL PROCEDURES Instructional Procedures ENGAGE Starting a Business 1. Students brainstorm about a business they would like to start someday. 2. In pairs, students create a list of things an entrepreneur would have to consider to start a successful business. 3. Facilitate group discussion with questions such as: Notes for Teacher NOTE: 1 Day = 50 minutes Suggested Day 1 10 minutes TEKS: 3.6A, 3.6B; 3.7A, 3.7B, 3.7C; 3.8B, 3.8C; 3.17E; 3.18A Instructional Note: Consider scribing student response as a guide for their group discussion. How would I decide pricing? Last Updated 05/13/13 Print Date 06/20/2013 Printed By Karen Johnson, MIDLAND ISD page 2 of 11
Unit: 11 Lesson: 01 Suggested Duration: 3 days How would scarcity affect pricing? How would I advertise to reach consumers? What would be the cost? What would be the profit? If I made a great deal of money, how would I choose a charity? Why donate? What are the steps in creating a business? 4. Students write out their suggested steps for starting a new business. They can refer to information from the last lesson to describe steps. EXPLORE Mary Kay, Cosmetics Entrepreneur 1. Explain to students the four factors of production land, labor, capital, and entrepreneurship needed to begin a business. 2. Read the Handout: Mary Kay Ash. Ask students to listen for the four factors of production in the story as they follow along. EXPLAIN Mary in the Middle 1. Students explain how and why Mary Kay Ash was successful in business by drawing a picture of Mary Kay in the center of a piece of blank paper and labeling it with her descriptive attributes. 2. Facilitate a discussion on the factors that contribute to a successful business by asking questions such as Why is entrepreneurship important to creating a business? Why did a free market contribute to Mary Kay Ash s success? Suggested Day 1 (continued) 15 minutes Attachments: Purpose Handout: Mary Kay Ash (one copy per student) TEKS: 3.6A; 3.7A, 3.7B, 3.7C; 3.8B, 3.8C; 3.8E; 3.18A Suggested Day 1 (continued) 15 minutes Attachments Teacher Resource: Mary Kay Ash Attributes KEY (one for teacher as class example) TEKS: 3.6A, 3.6B; 3.7A, 3.7B, 3.7C; 3.8B, 3.8C; 3.8E, 3.17E; 3.18A, 3.18B Instructional Note Avoid students copying the image of Mary Kay Ash. Make sure they do their own thinking. Especially encourage students to draw a better picture representing Mary Kay than a stick figure. EXPLORE/EXPLAIN Teaching Economic Terms 1. Students review the chart from Lesson 1, Unit 10: Handout: Money in the Free Market. 2. Teacher will create blank copies of Frayer model vocabulary cards using the Handout: Frayer Model Templates. (Run two to a page.) Each student will need four models, or two sheets. 3. Teacher provide the following list of vocabulary terms on an anchor chart: Entrepreneurship Profit Cost of production Free enterprise Market EconomicsInterdependence Trade Labor Capital Private property Competition Suggested Day 1 and Day 2 30 minutes Materials: Textbooks or other approved resources to help with definitions and information about the economic terms. Attachments: Make available the chart from Lesson 1, Unit 10: Handout: Money in the Free Market. Handout: Frayer Model Templates (2 copies per student) Teacher Resource: Frayer Model Example KEY (1 copy for the teacher) TEKS: 3.6A, 3.6B; 3.7A, 3.7B, 3.7C; 3.8B, 3.8C; 3.17E; 3.18A, 3.18B Instructional Note: Create an anchor chart chart with the vocabulary words. 4. Student trios will choose four economic words from the anchor chart to fill in on the Frayer model blanks. (12 words, each student trio gets 4 words) 5. Ensure all the terms are addressed by the trio. 6. Students discuss and conduct research for showing and understanding of the terms. 7. Trios will teach each other about the words on each of their Frayer organizers. 8. Student trios will share and explain their word choices with another trio. ELABORATE Connecting Concepts 1. Distribute the Handout: Connecting Concepts Arrows 2. Students use the arrows to create a reason that connects two of their concepts. This prepares the student for the Performance Indicator. Suggested Day 2 (continued) 25 minutes Attachments: Handout: Connecting Concepts Arrows Last Updated 05/13/13 Print Date 06/20/2013 Printed By Karen Johnson, MIDLAND ISD page 3 of 11
Unit: 11 Lesson: 01 Suggested Duration: 3 days 3. Students can conduct research with classroom resources if needed. TEKS: 3.6A, 3.6B; 3.7A, 3.7B, 3.7C; 3.8B, 3.8C; 3.17E; 3.18A, 3.18B 4. Facilitate connections by asking questions such as: How does supply and demand affect the price of a good or service? How does the cost of production and selling price affect profits? EVALUATE Grade 03 Unit 11 PI 01 Create a set of vocabulary cards (Frayer model) for economic terms. Choose 5-10 cards to arrange on a poster to show relationships between the words. Use the words as you explain your arrangement to a classmate. Standard(s): 3.6A, 3.6B, 3.7A, 3.7B, 3.7C, 3.8B, 3.8C, 3.17E, 3.18A, 3.18B ELPS ELPS.c.4D, ELPS.c.4G Suggested Day 3 50 minutes Instructional Notes: Consider approaching this Performance Indicator by combining student groups to create a hybrid set of connections among their terms. Additionally, consider saving this Performance Indicator to facilitate the Lesson 3 Performance Indicator of this unit. Last Updated 05/13/13 Print Date 06/20/2013 Printed By Karen Johnson, MIDLAND ISD page 4 of 11
Mary Kay Ash Grade 3 "People are a company's greatest asset." Mary Kay Ash Mary Kay Ash understood the American free market. She knew if an entrepreneur had an innovative idea and good sales skills, they would have a good chance at successful sales of their product and therefore, make a great deal of profit. Before she married, Mary Kay Ash was Mary Kathlyn Wagner. She was born in Texas in 1918. In 1939, she began working in sales for the Stanley Home Company. Stanley was a company that took their products into homes to sell them directly to consumers. Mary Kay was so good at home sales that by 1952 she had been hired away by another company, World Gifts, where she was also in sales. She was successful and she enjoyed it. Even though she did well at salesmanship, she left that company after watching a man whom she had trained get a promotion over her. She knew that was not equitable to her or to women, so she left the company. In 1963 as she was writing a book about how to start an ideal business, she decided to start her own ideal business. She started a cosmetics company called Mary Kay. Starting with her idea, $5000.00 and a little store in Dallas, Mary Kay invested in her own entrepreneurial idea. It was her dream to create a market for selling cosmetics and creams by distributing the products to consumers in their homes rather than in stores. Mary Kay s idea was to make a product that women would enjoy, to train other women to sell directly to the consumer, and to train her sales people in a way that would make them become financially successful, as well. Using incentive programs and other economic strategies with her employees, she designed a system to give her employees the chance to benefit from their own achievements. 2012, TESCCC 05/13/13 page 1 of 2
Mary Kay had two key philosophies: 1. Treat others as you would have them treat you. 2. Keep your priorities straight Mary Kay s combination of marketing skills and her commitment to treating her employees well, soon led the Mary Kay Company to become an enormous success. The company made almost one million dollars by the second year it was in business, partly because she sincerely valued her employees. She called her employees consultants. In 1996, Mary Kay established the Mary Kay Charitable Foundation which supports cancer research and the efforts to end domestic violence. In the year 2011, the Mary Kay Foundation, the employees and friends, all donated a total of $4.7 million to charities. Mary Kay s expertise in business attracted a great deal of interest. She was admired for her enthusiasm and her results. In the last few years the company had annual sales that exceeded $2 billion. In 2000, she was named the most outstanding woman in business in the 20th century by Lifetime Television. By 2001, the company she created had become a worldwide business enterprise with representatives in more than 30 markets. She began the business in her home state of Texas, and across 50 years time, she broadened sales to a world-wide market. Mary Kay Ash is best remembered for building a profitable business from scratch that created new opportunities for other women to also achieve financial success. Image Source: Mary Kay [Print Photo]. Retrieved from http://texashistoricalfoundation.org/mary-kay-museum/ 2012, TESCCC 05/13/13 page 2 of 2
Mary Kay Ash KEY Grade 3 Supportive teacher of sales people Rich and respected business woman Entrepreneur Donated to cancer research Successful Built a huge cosmetic company called Mary Kay Cosmetics Created a local, national and world market for cosmetics sold in the home. Looked out for others Texan Donated to help stop violence against women Maintained her priorities 2012, TESCCC 05/08/13 page 1 of 1
Money in the Free Market Grade 3 Unit: 10 Lesson: 01 Simple Free Market Economy Model (Free Enterprise, Capitalism) Businesses and the Community Government Spend Earn Save Taxes Donate Based on supply and demand Individuals control production, manage the use of resources, and make their own decisions about prices: 1. Freedom to choose your own business 2. Right to private property 3. Right to make a profit 4. Right to competition 5. Right to choose what to buy Free choice how to use private property Pay a portion of money earned to taxes (approximately 1/4 of earnings) Photo credit (all): Microsoft. (Designer). (2010). Clip art [Web Graphic]. Retrieved from http://office.microsoft.com/en-us/images/ 2012, TESCCC 04/03/13 page 1 of 1
Frayer Model Templates Definition Characteristics or description Concept or word: Examples Non-examples Definition Characteristics or description Concept or word: Examples Non-examples 2012, TESCCC 11/13/12 page 1 of 1
Frayer Model Example KEY Definition: -Free enterprise -Based on supply and demand -Producers and consumers have the right to choose -Private ownership or private property Characteristics or description: -Government does not interfere except to regulate -Private companies and businesses based on the owners ideas or entrepreneurship Examples: -Fast food chains -Grocery stores -All stores and businesses in America, owned by individuals or private businesses Concept or word: Free Market Non-examples: -Government owned businesses like stores and gasoline stations in a command economy such as Cuba or North Korea 2012, TESCCC 05/08/13 page 1 of 1
Connecting Concepts Arrows Grade 3 2012, TESCCC 11/11/12 page 1 of 1