According to science, for every action there is an equal and opposite reaction. Is that also true in our economy?

When policymakers and other leaders are faced with decisions, it's often easy to think something along the lines of "just do something!" But when policy is enacted to help achieve a certain outcome, it's possible that there might be unintended consequences. This interactive game from Marginal Revolution University will demonstrate to students when taking action to solve a problem, you also have to think about what ripple effect that action might have. Some of the outcomes might be a little silly (emus declaring victory over the army), but students will get a good feel for thinking about the consequences of their actions.

Questions:

• What were the initial policy decisions you made in the game? Describe your thought process behind these choices.
• Reflect on the immediate and long-term outcomes of your decisions. Were there any unintended consequences that surprised you? Why or why not?
• Consider the various stakeholders (e.g., consumers, businesses, government, environment) affected by your policy decisions. Which group do you think was most positively impacted, and which was most negatively affected? Why?
• Reflect on how different economic systems (e.g., capitalism, socialism) might approach the issues you encountered in the game. Which system do you think would best address these issues, and why?
• Choose one policy decision you made and discuss an alternative approach you could have taken. Predict the potential outcomes of this alternative approach.

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Be sure to check out NGPF's Econ Collection unit for more activities!

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Looking for more interactive resources? Be sure to check out the NGPF Interactive Library. 

About the Author

Ryan Wood

Ryan is the Partnerships and Adoption Manager for Next Gen Personal Finance’s midwest region. He brings his experience as a former teacher, curriculum designer, and sales and marketing professional to state organizations and school districts in supporting the implementation of their personal financial education efforts. He graduated from the University of Wisconsin-Green Bay and earned his teaching credential from Saint Mary’s University in Winona, Minnesota. He proudly taught at two rural high schools in Wisconsin before transitioning to curriculum design at NGPF, and is now excited to be on the front lines in delivering the best possible financial education in the midwest. He and his wife have three beautiful daughters, each of which inspire him to share the impact of being sound financial stewards both at home and as lifelong learners.