Learning about economics using peanut butter and cupcakes…

St Louis Fed has these interesting lessons to learn economics. They are meant for class 1-3 but don’t see why they cant be used for senior classes as well. It is far better to learn economics using these methods than the boring books which emphasize algebra over common sense.

Students hear a story about Peanut Butter, a slice of bread with peanut butter, who is looking for a friend. They hear about examples of complement and substitute goods and participate in an activity where they are given a good and they find a partner with a substitute or a complement for that good. They conclude by singing a song about complements and substitutes. The lesson provides the basis for understanding that a change in the price of one good affects the demand for goods that are complements to or substitutes for that good.

Detailed pdf is here. The songs go like this:

♫ What are complements? What are complements? Goods we use together Goods we use together Can you name some complements? Yes, I can, no problem Peanut butter and jelly Peanut butter and jelly

♫ What are substitutes? What are substitutes? Goods we use instead Goods we use instead Can you name some substitutes? Yes, I can, no problem Crayons and colored pencils Crayons and colored pencils

Good stuff.. 🙂


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