The EconomicsInternational Program The EconomicsAmerica Program ECONnections The National Council on Economic Education Sponsered by The McGraw-Hill Companies

Contact us

Search

Join our ListServ

How to get involved

Publications

EconEdLink

ECONnections
Lessons:
Trade in Colonial America / NAFTA
Timing is Everything
Developing a Financial Investment Portfolio
Widgets: Producing More, Using Less
How E-Commerce Influences Consumer Choice
Mystery Workers
Demand Shifters
Government Spending
Those Golden Jeans
The Great Depression Mystery
Lowell Workers and Producers Respond to Incentives

WHERE DID ALL THE MONEY GO? The Great Depression Mystery
Go to the Teacher Version

Part 4

Brainstorm about what businesses began or grew because of the mass production of the automobile. (These would include suppliers to both industries, capital equipment manufacturers, producers of complementary goods, construction industry.)

Take a look at the following definitions/descriptions:

  • Suppliers provide all the parts and materials needed to make a car and the car companies assemble those parts.
  • Capital goods are the factory, tools, and the machinery used in production.
  • Complementary goods are ones that develop because cars became the main means of transportation. Examples of these would be roads, gas stations, hotels, restaurants, repair shops, housing, etc.


You will need the Flash 5 plugin to complete the following interactive activity. If you do not have it, click here to download it.

Complete the Interdependence Web Activity.

After you've completed the activity, be prepared to discuss the following:

  • What types of jobs does any business need to function?
  • When these workers earn income from their jobs, what are the three major things that workers do with their income?
  • When income declines, what happens to the three "things" you identified in the previous question?
  • When demand for cars declined in the late 20s, what kinds of companies business declined?

Conclusion >>