Grades 9-12
China – Where will they fit in the world economy?
Standard
Standard: 3
- Students will understand that: Different methods can be used to allocate goods and services. People acting individually or collectively must choose which methods to use to allocate different kinds of goods and services.
- Students will be able to use this knowledge to: Evaluate different methods of allocating goods and services, by comparing the benefits to the costs of each method.
Standard: 9
- Students will understand that: Competition among sellers usually lowers costs and prices, and encourages producers to produce what consumers are willing and able to buy. Competition among buyers increases prices and allocates goods and services to those people who are willing and able to pay the most for them.
- Students will be able to use this knowledge to: Explain how changes in the level of competition in different markets can affect price and output levels.
Standard: 15
- Students will understand that: Investment in factories, machinery, new technology, and in the health, education, and training of people stimulates economic growth and can raise future standards of living.
- Students will be able to use this knowledge to: Predict the consequences of investment decisions made by individuals, businesses, and governments.
Standard: 7
- Students will understand that: Markets exist when buyers and sellers interact. This interaction determines market prices and thereby allocates scarce goods and services.
- Students will be able to use this knowledge to: Identify markets in which they have participated as a buyer and seller and describe how the interaction of all buyers and sellers influences prices. Also, predict how prices change when there is either a shortage or surplus of the product available.
Standard: 16
- Students will understand that: There is an economic role for government in a market economy whenever the benefits of a government policy outweigh its costs. Governments often provide for national defense, address environmental concerns, define and protect property rights, and attempt to make markets more competitive. Most government policies also have direct or indirect effects on people's incomes.
- Students will be able to use this knowledge to: Identify and evaluate the benefits and costs of alternative public policies, and assess who enjoys the benefits and who bears the costs.
Standard: 1
- Students will understand that: Productive resources are limited. Therefore, people cannot have all the goods and services they want; as a result, they must choose some things and give up others.
- Students will be able to use this knowledge to: Identify what they gain and what they give up when they make choices.
Standard: 6
- Students will understand that: When individuals, regions, and nations specialize in what they can produce at the lowest cost and then trade with others, both production and consumption increase.
- Students will be able to use this knowledge to: Explain how they can benefit themselves and others by developing special skills and strengths.
Concepts
With its, emerging middle class, its new markets, and a new emphasis on increasing its technology base, where is China going to fit in the world economy?
Introduction
[NOTE: The students should have an understanding of supply and demand, human and physical capital, and competition prior to working with this lesson].
In this lesson the students will use a variety of print, video, and electronic media to learn about China’s place in world economy. They will examine how China is fast becoming a giant consumer of the worlds factors of production. They also will look at China’s population and determine how many resources China will need in the future to sustain its growth. Explain that China is fast becoming an economic super power. This lesson will explore the reasons for China’s economic growth. When the stdudents have completed this lesson, they will have a better understanding of China’s current position in the world economy. They also will see how the rise of China may impact the United States.
Learning Objectives
- List several examples that show how China is developing from a socialist/communist country to a country with a mixed economic system.
- Identify ways in which China will compete with the United States for resources.
- Define these terms: purchasing power, factors of production, economic growth, disposable personal income, and standard of living.
Resource List
- AmosWEB: This site provides a large amount of economics information, including an economics dictionary.
www.amosweb.com/cgi-bin/awb_nav.pl?s=awb - China Boasts the Worlds Fastest – Growing Economy: This 2005 PBS Newshour article discusses the exploding Chinese economy.
www.pbs.org/newshour/bb/asia/july-dec05/china_10-04.html - Video Guide for “China’s Rising Economy”: This worksheet helps students to recognize the most important aspects of the in-class video.
Student Version
Teacher Version - CIA World Factbook: China: This page provides information related to the chinese economy.
https://www.cia.gov/the-world-factbook/countries/china/ - World Factbook Economy Overview: China: This article provides a summary of the Chinese economy.
China’s Economy Overview - Assessment Activity: This interactive quiz tests students’ understanding of the Chinese Economy lesson.
Multiple Choice Quiz
China Statistics
Process
The students should use the economics resource AMOSWeb to define the following terms: purchasing power, factors of production, economic growth, disposable personal income, and standard of living .
Assign the students to visit the PBS NewsHour article China Boasts the World’s Fastest Growing Economy and either watch the video or listen to the pod cast about China and its economic progress. Have the students fill in the video guide as they watch/listen to the segment. Here is the answer sheet for the video guide.
Tell the students to use the CIA World FactBook to learn what the positive and negative aspects of China’s economy are.
The students can visit this site to get an Overview of China’s Economy.
Conclusion
China is becoming a dominant force in the world economy. China’s purchasing power is on the rise, compared to that of the United States and other countries. China is not only exporting more goods and services; increasingly, China is exporting high-tech goods like computer chips.
Also, China is becoming a more consumer-oriented society. Chinese incomes are on the rise. The Chinese people are purchasing more cars, and in China today there are several Wal-Mart stores. China’s growth is unprecedented in the history of economics. With children in China learning English and China competing with the United States for production resources, China is no longer a poor communist country trying to survive. China is emerging as an economic superpower ready to compete the world economy.
Extension Activity
Assume that you are a journalist, Write a short article (three to five paragraphs) on China ‘s economy. Explain the recent changes in China ‘s economy. Also explain where the Chinese economy seems to be headed. [Answers will vary]
Assessment
List three factors of production that China is using to help its economy grow. Give an example of each from the video or from your reading in this lesson. [Possible answers: land to build new houses and factories, labor to make a variety of goods and services for export and for in-country consumption, and capital used to finance new growth for housing and factories.]
Give two reasons or indications that show why or how China is becoming more consumer oriented within its own economy. [Possible answers : More cars are being purchased; personal incomes are on the rise; corporations like Wal-Mart are opening up in China everyday, selling more and more consumer goods.]
Related Resources
Grades K-2, 3-5
Curious George Economics
Grades 3-5, 6-8
Did You Get the Message?
Grades K-2, 3-5