EARNING A LIVING SIMULATION

BUSINESSES AND HOUSEHOLDS Goal: end the simulation with more resources than you started Businesses vs. businesses Households vs. households

BUSINESSES Goal: make money How? The more you have, the happier you’ll be! How? Buy various factors of production (land, labor, capital) from households Once you have one of each factor of product, you may come to me and trade the three of them for one econo Sell econos back to households for money

HOUSEHOLDS Goal: make econos How? The more you have, the happier you’ll be! How? Sell your factors of production to the businesses for money Buy econos from the businesses

TRADING Trading may ONLY occur in the marketplace You cannot rip your $100 – you must sell in increments of $100 (but, you can buy four labor resources for $300…) When you are finished trading, you may return to your desk You will have 15 minutes to trade in the marketplace

OTHER RULES You MUST trade. If you do not trade, you will receive a 60% for this exercise Speaking of grades… BUSINESSES – BASED ON MONEY ONLY HOUSEHOLDS – BASED ON ECONOS ONLY 100% Highest profit Highest amount of econos 95% Profit Above average 90% Break even Average 80% Loss Below average 60% Bankrupt/no transaction No econos

DEBRIEF: EXIT TICKETS What did you do well? What did you not do well? If you could play the game again, what would you do differently? Explain “economic interdependence” in your own words, based on what you learned in the game. Predict: what would happen if you improved the ‘life’ of businesses? How would that effect households?