“The Wheat Game.”

Unit Three: Learning Objectives: North Clackamas School District Social Studies Priority Standards: Econ 51 (B): Define economic terms and identify examples of them in a current economy.

Daily Learning Target I CAN…. participate as a buyer or seller in a simulation that shows how a competitive market works.

The Wheat Game Simulation

Daily Learning Target I CAN…. participate as a buyer or seller in a simulation that shows how a competitive market works.

It’s the Holiday Season! What’s on your wish List?

. I would like my two front teeth Santa and to win The “Wheat Game” Today!

The Wheat Game [Turn to your “Entrance Slip” Now!]

An economic system that permits the conduct of business with minimal government intervention is called free enterprise.

The Market  The most important economic institution in a market economy is, not surprisingly, the market.  In a market economy PRICES allocate goods and services.

The Wheat Game [Starting in 30 minutes]

The Market  Prices are established through the inter- action of buyers and sellers in the market- place.

Key Terms to Know  Commodity: A product such as petroleum, milk, wheat or corn that is considered the same no matter who produces or sells it.  Futures: Contracts to buy or sell commodities at a particular date in the future at a price specified today.

The Market Simulation Rationale for Todays Simulation:   By participating in this simulation, YOU will experience how markets work and how the forces of supply and demand establish prices.

The Market Simulation WORK TO BE TURNED IN TODAY! (PROOF OF PARTICIPATION):   ENTRANCE SLIP (20 POINTS)   ACTIVITY 7.3 PACKET FILLED OUT COMPLETELY (40 PTS.) Game Score sheet Supply and Demand graph Debriefing questions answered in complete sentences (1-10) YOUR PROFITS WRITTEN ON THE FRONT AND CIRCLED   TOTAL POINTS: 60-Formative

Rules of Engagement  Each of you has a packet with a score sheet in it.  Let’s take a look at it now!  It is VERY IMPORTANT to receive points for this activity to record every transaction you make. This will document your PROFITS OR LOSSES.

Rules of Engagement  You CANNOT trade beyond your means. You can’t buy without any $$$ (duh…).  This means you must keep track of your trades. You can’t “Go in the hole (red)!”  If this happens, your “record sheet” is null and void and does not count.

Rules of Engagement: Help Wanted (3 positions needed)!  Buyers record each transaction on your own record sheet at your desk. Pick up a new card from my desk- (The “Buyer’s Broker ”). Don’t look at the card-automatic DQ.  Seller will record each transaction on your own sheet and report to The “Recorder” OR IT IS NOT an OFFICIAL TRANSACTION. Pick up another card from the “Seller’s Broker.”

Rules of Engagement  There will be six rounds of trading.  Each round is 5 minutes.  The first round is a “practice round” to get your “feet wet.”  Rounds 2-6 will count towards your total score.

Rules of Engagement  ONCE YOU HAVE AN OFFER AND AN ACCEPTANCE (A DEAL) ………..  RAISE YOUR HAND AND I WILL VERIFY THE DEAL AS THE “COMMODITIES MARSHALL” by saying “SOLD.”  NO APPROVAL…. NO DEAL!

Who Will be Crowned Champion of the World?  There will be a winner-no- THREE winners from each side: the 3 buyers who makes the largest profits and the 3 sellers who makes the largest profit!  Show Prizes Now!

Completing and signing your entrance slip(Read the fine print!): I have completed the “Entrance ticket” completely and understand the “Rules of Engagement” for today’s WHEAT MARKET GAME! I will follow the rules and play fairly in conjunction with the rules and procedures established by the FTC, CHS, the FFA, the NBA,WNBA, NFL, MLB, Wonder Bread, Franz Bread, Dave’s Killer Bread and the American Wheat Trading Federation. Sign and Date Now Please!!!

“A Market in Wheat” Pre- Game Show (Tips/Strategy) Good Afternoon ladies and gentleman. My name is Jimmy “The Geek” your expert trading analyst with some answers and advice to the most common questions asked regarding the wild, weird and whacky world of Commodities trading.

“A Market in Wheat” Pre- Game Show Q : To make a large profit, should you be making many or few transactions? A: Often the students who make the most transactions also make the largest profit.

“A Market in Wheat” Pre- Game Show Q: Should you let other students see the information on your card? A: No, you will lose the power to negotiate if the other party knows the point at which you will drop out of the negotiating process.

“A Market in Wheat” Pre- Game Show Q: Do you have to make a profit on every transaction to have a profit at the end? A: No. Again, more transactions generally garner more profit. Taking a loss on a particular transaction may be wise because the player will get a new card.

“A Market in Wheat” Pre- Game Show Q: Should you watch the classroom tally sheet on the overhead during the trading rounds? A: Yes, it allows you to know at what prices transactions are being made as well as the prices where negotiation would be fruitless.

“A Market in Wheat” Pre- Game Show Good Luck and Happy Trading My Cool New Friend !

Let’s Get Ready to Ruuuumble!  We will divide the class in half NOW and have each group line up on opposite sides of the room.  One group will be buyers and the other group will be sellers.  Take note of those standing across the room, as these will be the students with whom YOU will be able to negotiate.

Let’s Get Ready to Ruuuumble!  Everyone will start out with one Trading Card. BROKERS READY!  Buyers draw now.  Sellers now draw.  You can only buy or sell ONE bushel of wheat at a time. Once you buy or sell your bushel, draw another card.  Final advice from the Commodities Marshall ….

The Wheat Game [Round 1: Practice]

At the sound of the bell….. Come Out Trading!!!

The Wheat Game [Round 2]

At the sound of the bell….. Come Out Trading!!!

The Wheat Game [Round 3]

At the sound of the bell….. Come Out Trading!!!

The Wheat Game [Round 4]

At the sound of the bell….. Come Out Trading!!!

The Wheat Game [Round 5]

At the sound of the bell….. Come Out Trading!!!

The Wheat Game [Round 6]

At the sound of the bell….. Come Out Trading!!!

Who Will be Crowned Champion of the World?  There will be a winner from each side: the buyer who makes the largest profit and the seller who makes the largest profit!  Please Total Your Scores Now!  Two winners will be crowned shortly!

And the winner is …!!! Add Your Scores Now!

The Market Simulation WORK TO BE TURNED IN TODAY! (PROOF OF PARTICIPATION):   ENTRANCE SLIP (20 POINTS)   ACTIVITY 7.4 PACKET FILLED OUT COMPLETELY: Game Score sheet Supply and Demand graph Debriefing questions answered in complete sentences (1-10) YOUR PROFITS WRITTEN ON THE FRONT AND CIRCLED