12 Pages Posted: 26 Jul 2010
Date Written: June 29, 2010
This article describes a model that can be used to introduce basic economic concepts to children at the K-8 grade levels and lay a foundation for the later study of markets and prices. The model focuses on non-market environments, such as homes and schools, where people first experience economic decision making. In the model sunk costs provide an explanation for the observation of non-scarcity situations which are seldom considered and more rarely explained in textbooks and K-12 teaching lessons. In fact, non-scarcity situations often occur in non-market environments. The utility of the non-scarcity economics model is magnified by the commitment most states have made to establishing economics standards at the K-8 grade levels.
JEL Classification: A21, I20
Suggested Citation: Suggested Citation