Unit 1 → Subtopic 1.2

Economy in a Box: The Mystery Simulation

Economies operate as intricate systems that allocate resources, manage production, and facilitate trade. While large-scale economies can seem complex, their core principles remain consistent across all levels of organization, from global markets to small communities. This project will challenge students to experience economic decision-making firsthand through a mystery simulation, in which they will be assigned to a fictional economy with limited resources and unique constraints. Their task is to analyze how their assigned economy functions, make strategic decisions to maximize efficiency and stability, and evaluate the outcomes using economic reasoning.

Each student or group will receive a randomly assigned economic scenario in a sealed box (or a digital equivalent), containing details about the available resources, population size, trade restrictions, production capabilities, and external challenges. These economies may represent different types of economic systems—such as command economies, market economies, or mixed economies—requiring students to adapt their decision-making accordingly. Over the course of the simulation, they will make choices about resource allocation, trade, labor, and investment, all while considering the opportunity costs and trade-offs involved.

As the simulation progresses, students will document their decisions, analyze their economy's performance, and compare their outcomes to those of other economies in the class. They will then write an analysis report detailing their experience, explaining the economic reasoning behind their choices, and reflecting on the successes and failures of their simulated economy. This report will assess how different economic models respond to resource constraints, competition, and policy changes, helping students connect theoretical economic principles to practical applications.

The project will not only enhance students' understanding of fundamental economic concepts but also encourage critical thinking, problem-solving, and strategic planning in a dynamic, real-world context.

Recommended Procedure:

  1. Receive and Analyze the Mystery Economy Scenario – Read through the assigned economy's characteristics, identifying available resources, constraints, and the overall structure of the system. Determine whether it follows a command, market, or mixed economy model.

  2. Develop an Economic Strategy – Decide how resources will be allocated, what goods and services will be prioritized, and how production and trade will be managed. Consider potential risks and trade-offs.

  3. Simulate Economic Decisions and Track Outcomes – Make key economic decisions within the simulation framework, adapting strategies as new information becomes available. Document choices and outcomes in a structured format.

  4. Compare and Contrast with Other Economies – Discuss results with peers to identify similarities and differences between economic models. Analyze which strategies led to the best economic stability, growth, or efficiency.

  5. Write the Analysis Report – Summarize the experience, evaluate the effectiveness of economic decisions, and explain key takeaways. Use economic concepts to justify decision-making and assess the overall functionality of the assigned economy.

Suggested Sources:

  1. Understanding Economic Systems:

    2. Economic Decision-Making and Trade-offs:

    3. Examples of Resource Allocation in Real Economies:

    4. Data Analysis and Report Writing Tools:

    • Google Docs or Microsoft Word for structured report writing

    • Data visualization tools like Canva or Tableau for presenting economic outcomes

Grading Rubric:

Total Points: __ /20

Congratulations, You Have Finished the Project!