Teacher's Guide - The Curriculum Project

Inflation (cont’d)Pairwork1. Put the students into pairs. Ask them to think about answers to the threequestions and write down their ideas. Give them about 15 minutes.Answers:Question 1: The price of oranges will rise. There will be more dollars per orange in theeconomy. Also, oranges will be more scarce so people will be willing to pay more for them.Question 2: The price of oranges will fall. There will be more oranges per dollar. Orangeswill be less scarce, so people will want to pay less for them.Question 3: The price of oranges will rise. There will be more dollars per orange than before.People will have more dollars, but there are not more oranges to buy.Ask student to read through examples A, B, C and D (on pages 43 and 44)on their own. Give them about 15 minutes. Elicit any words that they don’tknow. See if the class can guess them. If not, provide a dictionary and askone student to look up the word and tell the rest of the class.Pairwork2. Put the students into pairs. Ask them to write down what they think arethe cause(s) of inflation in each case. Give them about 20 - 30 minutes. Thenelicit ideas from each group.A. Aung Kyaw - this is an example of inflation caused by too much demand, or too littlesupply. The market wants more goods and services than can be produced. Therefore, scarcitycauses prices to rise.The Curriculum Project ECONOMICS: an introduction - Teacher’s Guide20