Submitted By:Michael Ryan Moore, University of Pennsylvania, GSE
Date:June 3, 2011
Subject(s):Economics, Personal Finance
Grade Level(s):9, 10, 11, 12
In this lesson, we will add the concept of uncertainty to our previous discussions of utility and opportunity costs. Using the article “Driver Alert: Car Insurance Will Cost You,” students will look at how economists model risk. In particular, students will consider risk by taking on the role of a small business owner, cataloguing potential business risks and enumerating ways to manage those risks.