Unit 2: Lesson 13 - How Markets Allocate Resources Students read I, Pencil, by Leonard Read, to gain an understanding of Adam Smith's concept of the invisible hand of the marketplace. Students see that a system of market prices brings about cooperation without coercion. Then students use supply and demand analysis to explain how a change in one market tends to affect related markets. Concepts: - Markets
- Supply
- Complements
- Invisible Hand
- Secondary Effects
- Substitute
Standards: - Standard #7: Markets and Prices
- Standard #8: Role of Prices
 Unit 2: Lesson 7 - A Silver Market Students participate in a simulation activity that shows how a competitive market works. Although most markets for goods and services are not as competitive as the silver commodity market, the example helps students gain an understanding of how prices are set in any market. Concepts: - Choice
- Competition
- Demand
- Incentive
- Markets
- Supply
- Consumer Surplus
- Producer Surplus
- Consume
Standards: - Standard #4: Incentives
- Standard #7: Markets and Prices
Unit 7: Lesson 44 - World Environmental Issues: Is the Market at Fault? Students study for short case studies. They identify similarities and differences across these five case studies. After noting this information, they assess several environmental policy solutions. They must decide which policies set up incentives that encourage good stewardship of the resources. Concepts: - Incentive
- Markets
- Scarcity
- Tragedy of the Commons
Standards: - Standard #1: Scarcity
- Standard #4: Incentives
- Standard #8: Role of Prices
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