Unit 2: The Economy of Michigan

In this unit students explore the principles and concepts of economics through the lens of Michigan today. Students use what they have learned in the previous unit about Michigan’s natural resources to explore how natural, human and capital resources combine to influence the types of businesses in our state today. Student then focus on the economic principles of scarcity, choice, and opportunity costs. Using a simulation model, students experience the impact of scarcity on their choices and the opportunity costs that result. In doing so, students are also introduced to the concept of incentives. They learn that people respond to incentives in predictable ways. Students then apply these principles to business decisions. After identifying Michigan’s current economic activities, students explain the reasons for their location. Using fruit as an example, students are introduced to how geography affects specialization and interdependence. The concept of interdependence exposes students to Michigan’s connection with the national and global economies. Finally, students explore the role of government with respect to goods, services, and incentives.

How have the geography and economy of Michigan shaped our past?