Unit 2 → Subtopic 2.11
Conducting a “Cost of Living” Expriment
The cost of living varies significantly between cities, regions, and countries, impacting individuals' ability to afford basic necessities like housing, food, healthcare, and transportation. While some areas have high wages but also high living costs, others offer lower wages with more affordable expenses. This project challenges students to conduct an experiment exploring how different income levels impact living conditions and create a short video summarizing their findings.
Students will research the cost of essential goods and services in different locations, comparing how much money individuals need to earn to maintain a basic standard of living. They should simulate a budget for someone earning minimum wage, a middle-income worker, and a high-income professional, analyzing how much each can afford in different areas. By comparing the purchasing power of income in different economic settings, students will illustrate how income inequality and regional price variations affect people's financial well-being.
A key part of this experiment is understanding the role of government intervention, such as minimum wage policies, housing assistance, or tax credits, in reducing the gap between low-income earners and the actual cost of living. Students should explore how people adjust their spending habits based on income levels and economic constraints.
The final output will be a short video summarizing the experiment, featuring comparisons of cost-of-living data, income levels, and government policies. The goal of this project is for students to visually demonstrate how income redistribution and economic policies affect financial stability and quality of life across different income groups.
Recommended Procedure:
Research Cost of Living in Different Locations – Gather data on expenses such as rent, groceries, healthcare, transportation, and utilities in various cities or countries.
Simulate Different Income Levels and Budgeting Scenarios – Create hypothetical budgets for individuals at different wage levels (minimum wage, middle-income, and high-income earners).
Analyze the Impact of Government Policies on Affordability – Examine how policies like minimum wage laws, social welfare programs, and tax credits affect people’s ability to afford necessities.
Create a Short Video Presenting Findings – Use visuals, charts, and real-life data to explain how income levels impact cost-of-living challenges in different regions.
Edit and Finalize the Video for Clarity and Engagement – Ensure the video is clear, engaging, and under five minutes, making the economic concepts easy to understand.
Suggested Sources:
Understanding Cost of Living and Wage Gaps:
Investopedia: What Is Cost of Living? – https://www.investopedia.com
Khan Academy: Income and Wealth Distribution – https://www.khanacademy.org
2. Global Cost of Living Comparisons:
Numbeo: Cost of Living Database – https://www.numbeo.com
The Balance: How Inflation Affects Purchasing Power – https://www.thebalancemoney.com
3. Government Policies and Economic Interventions:
World Bank: The Role of Minimum Wage in Reducing Inequality – https://www.worldbank.org
OECD: Government Assistance and Income Distribution – https://www.oecd.org
4. Video Editing and Presentation Tools:
Canva: Free Animation & Video Creation – https://www.canva.com
iMovie or Adobe Premiere for Video Editing
Grading Rubric:
Total Points: __ /20
