Instructor’s Manual – Chapter 2
Nickels/McHugh/McHugh Understanding Business 12e
Opportunity International Activity Summary: This video case features the micro-lending organization Opportunity International. This organization provides small loans for individuals who want to start a business in developing countries. It highlights the Invisible Hand Theory, and it describes how the ideas of Adam Smith are confirmed when an economy increases as a result of individuals being free to economically prosper. The video pauses periodically to ask the student questions throughout the activity. Topics include capitalism, socialism, communism, Adam Smith, Invisible Hand Theory, entrepreneurship, lending, risk, capital, and factors of production. Concept Review (Learning Goals, Difficulty, Blooms, and AACSB) Learning Goals: Learning Goal 02-01: Explain basic economics. Learning Goal 02-02: Explain what capitalism is and how free markets work. Difficulty: 2 = Medium Blooms: Remember AACSB: Knowledge Application Follow-Up Activity: Instructors could have students research other micro-lending organizations, and then ask students to list the various business ventures that have been created with these small financial loans. Students could also be asked to describe different ways that a person could obtain money to start businesses outside of the micro-lending realm. This would lead to a conversation about capitalism versus socialism and communism.
Economic Systems Activity Summary: This iSeeit! short video describes how one’s economic life would be under the three major economic systems of the world: capitalism, socialism, and communism. Concept Review (Learning Goals, Difficulty, Blooms, and AACSB) Learning Goals: Learning Goal 02-02: Explain what capitalism is and how free markets work. Learning Goal 02-03: Compare socialism and communism. Learning Goal 02-06: Contrast fiscal policy and monetary policy, and explain how each affects the economy. 51
Instructor’s Manual – Chapter 2 | Nickels/McHugh/McHugh Understanding Business 12e | © 2019 by McGraw Hill Education