Lesson 6
Making Rational Choices
--how do we make our choices?
-Positive statements are facts
-Normative statements-“no right answer”; individual values
e.g. going to war or paying for education
-Social values and choice---result in conflicting normative statements

Objectives:
Students will be able to:
1)recognize and explain differences between positive and normative statements
2)explain the meaning of rational choice-taking the things with greater value and giving up those with lesser values (very similar in understanding opportunity cost) and show understanding of how to evaluate it.

Materials:
Newspaper articles about a current event

Activities:
1)Warm Up

a)Definitions and Examples of Positive Statements, Normative Statements, and Rational Choice.

b) Students are asked to write down a list of five facts about themselves, and five value statements (opinions) about themselves.

c) Understanding Differences in Positive and Normative statements

Two students will read a role play out. The class will then discuss and answer some questions about how the story demonstrates the economic terms of positive statements, normative statements, and rational choice.

d) Making Rational Choices

for individuals…
After I read a list of my top ten goals/dreams for life, students will be asked to list major goals/dreams for their lives. I will introduce the topic of rational choice and give them the definition. Students will be asked why they feel that their goals are rational choices. Do other students agree? How do different goals reflect different values? How is it possible for a decision to be a rational choice for one person but not for someone else?

for groups…
Students will be divided into teams of three or four students. Each team will pretend their school has received a gift of $5,000 to improve the quality of education in their school. Teams must establish and rank a list of four possible uses for the large amount of money. Each team will have to explain their choices to the rest of the class. Discuss whether or not they have made rational choices. Why is it harder to make a rational choice that affects many people than to make one just for yourself?

2) Main Activity- Putting Rational Choices to the Test
a) Students will be asked to individually and then as a group evaluate historical choices that may or may not been rational choices [students will be given a worksheet with descriptions and years of historical choices]. Students will discuss why the decisions were made and whether or not they were rational choices. What positive and normative statements were or could be used to support the rational choices made? This activity will close with a discussion on how we can evaluate rational choice after the fact. Did the benefits outweigh the costs? Is there a consensus or a difference of opinions evaluating rational choice? [our social values affect our evaluations, opinions]

e.g. the Boston Tea Party or other acts during the American Revolution, the Holocaust, Rosa Parks refusing to give up her seat on the bus during the Civil Rights Movement, space exploration, U.S. Bombing Hiroshima and Nagasaki, suicide bombers in Israel, the current war against Terrorism, possible war with Iraq…

b)Students will find a newspaper article concerning an important decision made recently or will be made by the federal government [e.g. war with Iraq].

Students will answer each of the following:

a)describe the decision made (or the decision that might be made)
b)identify a particular person or group of people who will be better off because of this decision. In what way will they benefit?
c)identify a particular person or group of people who will be worse off because of this decision. In what way will they be hurt?
d) On the current issue, students should 1)describe the controversial issues of the proposal 2)clearly state the decisions you have reached 3) explain why you think your choice is the best one [consider the positive and normative statements used in making your choice]. Students will write an essay and some may present it in class for a possible debate.

3) Closing Activity

Students will share a comment or question about today's class.

Evaluation:
1) Classroom participation/work
2) Homework: Students will finish up classwork

On worksheet:

People make rational choices using positive and normative statements. Students will be given definitions of each type of statement as well as presented with examples of them from newspapers. Students will then be given a list of six statements. Students must explain why each one is a positive or a normative statement.
-There were about 238,000,000 people living in the US in 1985.
-The unemployment rate was highest in the state of West Virginia in February 1986.
-The President of the US is the most important man in the world.
-Watching television is a waste of time
-Most prices went up in 1987.
-It is wrong for Americans to buy Japanese cars.