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TEACHER'S RESOURCE GUIDE and enrichment activities

for

"The Invisible Hand" and "Fostering Prosperity"

Comments to: VanSloan@yahoo.com

TABLE OF CONTENTS

Section 1: THE BENEFITS OF THIS APPROACH TO ECONOMICS

Section 2: CORRELATION TO NCEE'S 22 CONCEPTS

Section 3: MAIN ECONOMIC CONCEPTS (listed by chapter)

Section 4: TEACHING WITH THESE TWO BOOKS

Section 5: ACTIVITIES for "The Invisible Hand" chapters

Section 6: ACTIVITIES for "Fostering Prosperity" chapters

(one of eight "real world" student activities)

ENRICHMENT FOR CHAPTER V of The Invisible Hand- LOCAL COMPANY PROFITS

A high school economics course provides an excellent opportunity for interaction between students and local companies. A typical interaction is for company officials to come to a school to explain what they do and what job opportunities they offer. Such programs can be useful, but students can benefit even more when they take the initiative to dig out information on companies. This activity, along with those suggested for "Fostering Prosperity" chapters IX and XI, provide a framework for students to do such digging.

Teachers could start the process by getting a list of the publicly owned companies with branches in the local area. The business editor of a large local newspaper typically can help with such a list. Each student in a class should select a different company on the list, excluding government groups or companies without public shareholders. Students who strongly want to choose the same company can select among non-local competitors in the same industry. During the semester, each student would be expected to become well informed on a different company. Incidentally, a student's efforts might lead to a worthwhile summer or permanent job.

To start getting informed, a student should contact the local branch to find out how to reach the company's public relations department. It will likely be in a different city, but many have toll free numbers. The student should ask for a copy of the most recent annual and quarterly reports to stockholders. In addition, the student might ask to receive other useful company information such as: copies of recent magazine articles, sales brochures, information given to new employees, etc.

The form on the next page should be completed by each student and kept in an alphabetic order file for the class. This file would be useful for the stock market simulation suggested as an activity with Chapter VII. Students may need help in identifying profit (earnings per share) and dividend figures from the company supplied information. Teachers should explain the difference between a firm's fiscal and calendar year and help students record the quarterly results in consistent, calendar quarter slots. Students are to write estimated data for future quarters.

Students should be encouraged to re-read the first two sections of chapter V before completing the bottom part of the following form. They should comment on the stated company goals, as compared to what is truly in the best interests of the stockholders. Teachers should emphasize that each student is an independent analyst. Objectivity, not necessarily acceptance of the full picture presented by company officials, is the mark of a good analyst.

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INFORMATION ON________________________________________COMPANY

PREPARED BY ANALYST________________________________DATE_________

MAJOR POINTS IN PRESIDENT'S LETTER TO STOCKHOLDERS:

STUDENT ANALYST'S OUTLOOK ON COMPANY'S PROSPECTS:

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Comments to: VanSloan@yahoo.com