Activity: The Wheat Activity

Lesson Description:

In this simulation students are workers producing wheat.  The students will use their available capital (pencils) to produce wheat by writing the word “w-h-e-a-t” as many times on the piece of paper (land) as possible in a given time period.  Each round more students are added to each team which will slow down production and show how even as total product increases the marginal productivity of workers does not increase at that same rate.  Students will use this activity and marginal decision making to understand how companies make decisions to hire based on marginal productivity.

Time Required: 

10 – 15 minutes

Materials:

• 10-15 pieces of plain 8.5 x 11 paper (land)
• Students divided up into 2+ teams (labor)
• Pencils (capital)
• Tape
• Prize of some sort for the winning team (Extra credit, candy, etc.)

Concepts:

• Diminishing Marginal Productivity
• Productive Resources
• Productivity
• Scarcity

Lesson created by Dr. Jamie Wagner
© Foundation for Teaching Economics, 2018.  Permission granted to copy for educational use