Unit 3 → Subtopic 3.2
Conducting the “Cost of Living” Experiment
The cost of living varies significantly across countries, cities, and even neighborhoods, affecting how individuals spend, save, and manage their financial well-being. Economic indicators such as inflation, wage levels, housing costs, and purchasing power determine how much people need to afford basic necessities like food, healthcare, transportation, and housing. This project challenges students to conduct an experiment on the cost of living in different locations and present their findings in a short video.
Students will collect data on the cost of essential goods and services in different cities or countries, comparing how wages and price levels influence standard of living. They should analyze how inflation erodes purchasing power and explore why certain locations have higher costs despite similar wage levels.
A key aspect of this experiment is understanding economic inequality—why some people struggle to meet their needs despite working full-time, while others have greater financial flexibility. Students should explore factors such as rent prices, healthcare expenses, taxes, and currency strength to determine how different economies provide for their citizens.
The final product will be a short video summarizing their findings, using charts, interviews, or visual comparisons to explain how economic conditions shape financial realities. The goal of this project is for students to connect economic indicators to real-world financial struggles and learn how policies influence affordability and quality of life.
Recommended Procedure:
Research Cost of Living Data for Different Locations – Gather information on housing, food, transportation, healthcare, and wages in various cities or countries.
Analyze How Inflation and Wages Affect Purchasing Power – Compare cost-of-living expenses to average salaries, minimum wage, and economic growth rates.
Examine the Impact of Government Policies on Affordability – Investigate how subsidies, tax policies, and labor laws influence the financial stability of citizens.
Create a Short Video Presenting Findings – Use visual comparisons, statistics, and real-life examples to demonstrate how economic indicators affect everyday life.
Edit and Finalize the Video for Clarity and Engagement – Ensure the video explains key economic concepts in an engaging and easy-to-understand format.
Suggested Sources:
Understanding Cost of Living and Purchasing Power:
Investopedia: How Cost of Living Is Measured – https://www.investopedia.com
Khan Academy: Inflation and Real Wages – https://www.khanacademy.org
2. Comparing Cost of Living Across Countries:
Numbeo: Cost of Living Database – https://www.numbeo.com
The Balance: How Inflation Affects Household Budgets – https://www.thebalancemoney.com
3. Government Policies and Economic Well-Being:
World Bank: The Role of Minimum Wage in Reducing Inequality – https://www.worldbank.org
OECD: Government Assistance and Wage Policies – 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
