simCEO and the CEE Standards
Introduction
One of the added benefits of simCEO is the degree of student engagement. Students truly "own" their decisions and it is within this authentic setting that they can show their application of the standards.
The lessons and worksheets below are not designed to be an economics curriculum. They are meant to provide an authentic manner in which students can reinforce and apply their understandings of the standards within the context of an authentic simulation where they see the value of mastering these concepts. We recommend their use in one of two ways.
As an introduction to a topic
Use the lesson to preview a topic within the simulation’s setting. Then follow up with the more academic, theoretical explanation of the concept(s), usually accompanied by other sources (ie. traditional textbooks)
As an application of a topic
After a topic has been introduced in theory, have students apply their understanding to their specific actions in simCEO.
The tables below provide connections for the Council of Economic Education(CEE) standards to the simCEO simulation. The final two columns of the table display all of these connections, each with a teacher and student version. Two of the examples of the student connections are available to preview. Registered teachers who have logged in will have access to all of the connections.
| CEE Standards | Connection to Standard Described | simCEO Resource | Teacher Version | Student Version |
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Standard 1 : Scarcity Productive resources are limited. Therefore, people can not have all the goods and services they want; as a result, they must choose some things and give up others. |
As both an investor and an entrepreneur, students must make choices with their resources (time, money, supplies, etc.) | Scarcity as an Investor | ||
| Scarcity as an Entrepreneur |
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Standard 2 : Marginal Utility Effective decision making requires comparing the additional costs of alternatives with the additional benefits. Most choices involve doing a little more or a little less of something: few choices are "all or nothing" decisions. |
As an investor, you have a myriad of choices with your investment dollars. What are the marginal costs and benefits associated with various investment choices. | Marginal Utility of Investments | ||
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Standard 3 : Allocation of Goods and Services Different methods can be used to allocate goods and services. People acting individually or collectively through government, must choose which methods to use to allocate different kinds of goods and services. |
As an entrepreneur, it is important to understand the characteristics of different economic systems. | Economic Systems | ||
| On a Path to Socialism- Article | ||||
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Standard 4 : Role of Incentives People respond predictably to positive and negative incentives. |
The federal government provides incentives to encourage/discourage investment in the stock market though monetary and fiscal policy. As an entrepreneur, you can offer positive and negative incentive that need not include money that will encourage productivity. | Compensation Plan | ||
| Government Monetary Policy Incentives | ||||
| Government Fiscal Policy Incentives |
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Standard 5 : Gain from Trade Voluntary exchange occurs only when all participating parties expect to gain. This is true for trade among individuals or organizations within a nation, and among individuals or organizations in different nations. |
Buying/Selling shares and hiring workers for wages/salaries connect the idea of “gain from trade” to the simulation. | Trade and Specialization | ||
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Standard 6 : Specialization and Trade 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. |
As an entrepreneur, hiring a worker to perform a task and dividing your employees into specialized roles represent connections to this standard. | Trade and Specialization | ||
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Standard 7 : Markets - Price and Quantity Determination Markets exist when buyers and sellers interact. This interaction determines market prices and thereby allocates scarce goods and services. |
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Standard 8 : Role of Price in Market System Prices send signals and provide incentives to buyers and sellers. When supply or demand changes, market prices adjust, affecting incentives. |
Share prices fluctuate to send immediate signals. Savvy investors (and entrepreneurs) will be able to predict how events will affect future profits. Share prices represent a near-immediate signal regarding these events. | Prices as Signals | ||
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Standard 9 : Role of Competition Competition among sellers lowers costs and prices, and encourages producers to produce more of 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. |
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Standard 10 : Role of Economic Institutions Institutions evolve in market economies to help individuals and groups accomplish their goals. Banks, labor unions, corporations, legal systems, and not-for-profit organizations are examples of important institutions. A different kind of institution, clearly defined and enforced property rights, is essential to a market economy. |
Institutions serve a distinct purpose in market economies. Explore the role of major institutions in your role as an entrepreneur. | The Role of Institutions | ||
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Standard 11 : Role of Money Money makes it easier to trade, borrow, save, invest, and compare the value of goods and services. |
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Standard 12 : Role of Interest Rates Interest rates, adjusted for inflation, rise and fall to balance the amount saved with the amount borrowed, which affects the allocation of scarce resources between present and future uses. |
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Standard 13 : Role of Resources in Determining Income Income for most people is determined by the market value of the productive resources they sell. What workers earn depends, primarily, on the market value of what they produce and how productive they are. |
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Standard 14 : Profit and the Entrepreneur Income for most people is determined by the market value of the productive resources they sell. What workers earn depends, primarily, on the market value of what they produce and how productive they are. |
Entrepreneurs are people who take the risks of organizing productive resources to make goods and services. Profit is an important incentive that leads entrepreneurs to accept the risks of business failure. Entrepreneurs are more than highly-skilled workers; they are factors of production. Entrepreneurs bring together land, labor, and capital in a unique way. | Entrepreneurs | ||
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Standard 15 : Growth Investment in factories, machinery, new technology, and in the health, education, and training of people can raise future standards of living. Business investment can raise future standards of living. |
As an entrepreneur, these investments often mean weighing short term costs versus long term benefits. | Business Growth and Investment | ||
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Standard 16 : Role of Government 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 redistribute income. |
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Standard 17 : Using Cost/Benefit Analysis to Evaluate Government Programs Costs of government policies sometimes exceed benefits. This may occur because of incentives facing voters, government officials, and government employees, because of actions by special interest groups that can impose costs on the general public, or because social goals other than economic efficiency are being pursued. |
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Standard 18 : Macroeconomy-Income/Employment, Prices A nation's overall levels of income, employment, and prices are determined by the interaction of spending and production decisions made by all households, firms, government agencies, and others in the economy. |
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Standard 19 : Unemployment and Inflation Unemployment imposes costs on individuals and nations. Unexpected inflation imposes costs on many people and benefits some others because it arbitrarily redistributes purchasing power. Inflation can reduce the rate of growth of national living standards because individuals and organizations use resources to protect themselves against the uncertainty of future prices. |
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Standard 20 : Monetary and Fiscal Policy Federal government budgetary policy and the Federal Reserve System's monetary policy influence the overall levels of employment, output, and prices. |
The federal government provides incentives to encourage/discourage investment in the stock market though monetary and fiscal policy. | Government Fiscal Policy Incentives | ||
| Government Monetary Policy Incentives |
| Other Economic Concepts | Connection to Economic Concept | simCEO Resource | Teacher Version | Student Version |
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| Determinants of Demand | As an entrepreneur, it is important to know what can influence consumer demand. Do these same determinants affect the stock market in similar ways? How can supply of a share be increased? What is the effect? | Determinants of Demand |