Nearpod version available
Grade 9-12
,
Lesson
Distribution of Income
Objective
Students will be able to:
- Explain why more productive workers usually earn more income.
- Identify at least one government policy that might influence the distribution of income.
- Analyze the impact of a government intervention in a market on the distribution of income.
- Compare measures of central tendency to analyze the distribution of income.
- Construct a Lorenz curve using an online interactive.
- Calculate the Gini coefficient to analyze income inequality.
Standard
National Standards in Economics
Income
Standard: 13
- Students will understand that: Income for most people is determined by the market value of the productive resources they sell. What workers earn primarily depends on the market value of what they produce.
- Students will be able to use this knowledge to: Predict future earnings based on their current plans for education, training, and career options.
Role of Government and Market Failure
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.
Scarcity
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.
![](https://preview2.econedlink.org/wp-content/uploads/legacy/EconEdLink-350-distribution-of-income.jpg 1w)
In this personal finance lesson, students will learn how productivity and government policy influences the distribution of income.
Resources
Procedure
Click NEARPOD VERSION: DISTRIBUTION OF INCOME PART 1 and NEARPOD VERSION: DISTRIBUTION OF INCOME PART 2 to access an interactive version of the lesson powered by Nearpod: students interact and respond to questions on their device, and teachers will see their responses in real time!