Activity 01
Simulation Game: The Island Economy
Small groups are 'stranded' on an island with a limited set of resources (tools, seeds, water). They must decide how to allocate their labor and resources to survive, experiencing the 'opportunity cost' of every decision they make.
Explain why scarcity is the fundamental problem of economics.
Facilitation TipDuring the Island Economy simulation, circulate and ask groups to explain their resource allocation decisions in terms of scarcity.
What to look forProvide students with a scenario: 'You have $50 and want to buy a video game, a new pair of shoes, and go out for pizza with friends.' Ask them to: 1. Identify the scarcity they face. 2. List two possible trade-offs they could make. 3. State the opportunity cost of their chosen purchase.