Activity 01
Budget Simulation: Allocate the Federal Pie
Provide groups with a simplified Australian federal budget of $600 billion and pie charts of sectors. Students discuss needs, vote on allocations, then compare to real budget data. Reflect on opportunity costs in a class share-out.
Analyze the opportunity costs associated with different government spending priorities.
Facilitation TipDuring Budget Simulation, provide a fixed total budget and require students to justify cuts before reallocations, forcing explicit trade-off discussions.
What to look forPose the question: 'If the government has an extra $1 billion to spend, should it go to improving aged care services or upgrading national highways?'. Ask students to prepare a one-minute argument for their chosen priority, citing at least one opportunity cost of not funding the other.