Title
The Economy of Paraguay (October Crowell)
Goals
(1) Students will investigate the use of the Leontief Input/Output Model for Economies
(2) Students will create and use technology and demand matrices.
Abstract
This activity is designed to allow students to use their knowledge of matrices and Leontief Models and apply them to a real world economy. It should be used only after thorough study of matrices and the Leontief Model.
Problem Statement
Economists from time to time study the dependency of sectors of the economy in certain countries on other sectors. Given some information about a country in South America called Paraguay, you will develop an economic study of its' economy and compute some basic demand matrices.
Instructor Suggestions
(1) Introduce the problem
(2) Have students work in groups to solve the problem
(3) Be sure to refer them to previous work done on Leontief Models
(4) When groups are done, have each group present their work.
(5) Discuss the students' work in terms of matrices and economic models.
Materials
"The Economy of Paraguay" activity sheet
Time
Introduction (5 min), Group work (45 min (this may take more time depending on the level of students), Presentations (20 min), Discussion (15 min)
Mathematics Concepts
Discrete Mathematics Concepts
Leontief Input/Output Model, Matrices
Related Mathematics Concepts
Matrices, Solving Systems
NCTM Standards Addressed
Problem Solving, Communication, Reasoning, Connections, Algebra, Discrete Mathematics
Colorado Model Content Standards Addressed
Algebraic Techniques (2), Problem Solving Techniques (5), Linking Concepts and Procedures (6)
Curriculum Integration
This activity can be used in an Advanced Algebra or Pre-Calculus class only after thorough exploration into the topics of matrices, solving systems and Leontief Models. This activity could be done using systems of equations instead of matrices.
Further Investigation
Students could research information on their own countries and present projects on economic models of these countries. They could also extend this problem by changing their technology matrix and reporting on how that changes their result.
Variations/Comments
References/Resources
Colorado State Content Standards. Colorado Department of Education.
Crisler, N., Fisher, P., & Froelich, G. (1994). Discrete mathematics across the curriculum, K-12, Reston, VA; National Council of Teachers of Mathematics.
National Council of Teachers of Mathematics, (1989). Curriculum and evaluation standards for school mathematics. Reston, VA; Author.
The New Grolier Multimedia Encyclopedia, CD- ROM, Copyright 1993