Understanding the Free Market through 'I, Pencil'

Understanding the Free Market through 'I, Pencil'

Assessment

Interactive Video

Economics, Business, Social Studies

10th - 12th Grade

Hard

Created by

Mia Campbell

FREE Resource

The video explores the concept of 'I, Pencil' to illustrate the complexity and cooperation involved in producing a simple pencil. It highlights the role of the free market and the invisible hand in facilitating global trade without central direction. The discussion debunks the zero sum game myth, emphasizing voluntary trade as mutually beneficial. The price system is shown as a mechanism for peaceful cooperation among diverse individuals, leading to economic and personal freedom.

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10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main idea behind the concept of 'I, Pencil'?

The role of government in pencil production

The simplicity of making a pencil

The history of pencil manufacturing

The complexity and cooperation required to make a pencil

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is it said that nobody knows how to make a pencil?

Because it is made by machines

Because it is a secret process

Because the process is too simple

Because it requires knowledge from many different fields

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which material mentioned in the video is incorrectly associated with its source?

Rubber from Malaysia

Graphite from South America

Wood from the Pacific Northwest

Steel from Africa

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the 'invisible hand' refer to in the context of the free market?

Self-interested entrepreneurs

Centralized planning

Random chance

Government regulations

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a zero-sum game in economic terms?

A situation where one party's gain is another party's loss

A situation where everyone wins

A situation where the government controls the market

A situation where resources are unlimited

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does the price system function as a mechanism for information?

By signaling demand and supply through price changes

By setting fixed prices for goods

By allowing government control over prices

By eliminating competition

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What happens when there is a higher demand for pencils?

Government steps in to regulate

Prices decrease

Production stops

Prices increase and signal producers to make more

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