Student Learning Objectives - missouriffa.org Substitution/EP3 Lesso… · Web viewAfter completing the lesson on substitution, students will demonstrate their ability to apply

EP3

Agriculture Management, Economics, & SalesSubstitution

Unit: Economic Principles in Agribusiness

Lesson Title: Substitution

Standards ABS.04.01.03.a. Explain the importance of return on investment for an agribusiness enterprise.ABS.01.01.01.a. Recognize principles of capitalism as related to AFNR businesses.CS.02.04.01.c. Demonstrate critical and creative thinking skills while completing a task.CS.01.04.03.b. Assess the alternative outcome of specific actions.

CCSS.Math.Content.HSS-MD.B.5b Evaluate and compare strategies on the basis of expected values. CCSS.Math.Content.HSA-CED.A.4 Rearrange formulas to highlight a quantity of interest, using the same reasoning as in solving equations.CCSS.ELA-Literacy.SL.11-12.1 Initiate and participate effectively in a range of collaborative discussions (one-on-one, in groups, and teacher-led) with diverse partners on grades 11–12 topics, texts, and issues, building on others’ ideas and expressing their own clearly and persuasively.CCSS.ELA-Literacy.SL.11-12.4 Present information, findings, and supporting evidence, conveying a clear and distinct perspective, such that listeners can follow the line of reasoning, alternative or opposing perspectives are addressed, and the organization, development, substance, and style are appropriate to purpose, audience, and a range of formal and informal tasks.

Student Learning Objectives

Slide 2 in EP3 Substitution Lesson ObjectiveAfter completing the lesson on substitution, students will demonstrate their ability to apply the concept in real-world situations by obtaining a minimum score of 80% on a Substituting for an Improved School Project.

Enabling Objectives

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As a result of this lesson, the student will…1. Define substitution and describe the two methods of substitution.2. Determine maximum profit. 3. Determine and calculate the best rate of substitution.

Time: Approximately 125 minutes

List of ResourcesBacon K., Boren N., Kirkwood V., Birkenholz R., Plain R., Rohrbach N. (1988). Agriculture

Management and Economics Instructor Guide. Columbia, MO: Instructional Materials Laboratory.

Bacon K., Boren N., Kirkwood V., Birkenholz R., Plain R., Rohrbach N. (1988). Agriculture Management and Economics Student Reference Guide. Columbia, MO: Instructional Materials Laboratory.

Instructional Materials Laboratory. (1997). Agribusiness Sales, Marketing, and Management Instructor Guide. Columbia, MO: University of Missouri.

Schneiderheinze R., Wood C. (1997). Agribusiness Sales, Marketing, and Management Student Reference. Columbia, MO: Instructional Materials Laboratory.

List of Tools, Equipment, and SuppliesEP3 PowerPoint PresentationEP3 Activity Sheet and Evaluation PacketNote cards or small sheets of paper for review activity

Key Terms. Slide 3 in EP3 Substitution

The following terms are presented in this lesson (shown in bold italics):Substitution Maximum profitConstant substitutionVariable substitutionMarginal rate of substitutionPrice ratio

Economic Principles in Agriculture EP3 Substitution

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Interest Approach: Use an interest approach that will prepare the students for the lesson. Teachers often develop approaches for their unique class and student situations. A possible approach is included here.

Slide 4-8 in EP3 SubstitutionSubstitution! – Show students pictures on PowerPoint slides, having them answer the question, “If we chose to use a different item than _____________________, what would we use instead to get the same end result?” Click “enter” a second time and a suggested substitute will come on the screen.

During discussion, use the word “substitution” or “substitute” to get students familiar with the term and its concept.


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Summary of Content and Teaching Strategies

Objective 1: Define substitution and describe the two methods of substitution.

Teaching Strategies Related Content1. Define substitution

Slide 9 in EP3 Substitution

2. Describe the two methods of substitution

Slide 10 in EP3 Substitution

Constant Substitution Example – Many swine producers feel that milo can be substituted for corn in a hog ration on a pound-for-pound basis. If this is true, a farmer would want to compare prices and use whichever grain is cheapest.

Variable Substitution Example – A business decides to replace some works with machines; they found that the first machine replaced seven workers, the second machine replaced five workers, the third machine replaced three workers, and the fourth machine only replaced two workers.

Substitution Replacing one input with another Attempt to maximize profit

Constant and Variable Substitution

Constant Substitution Substitution at the same rate, one for

one

Variable Substitution One resource substitutes for part of

another Different rates for each additional unit

of input

Objective 2: Determine maximum profit.

Teaching Strategies Related Content1. What does it mean if a business owner

wants to maximize profits? What are some examples? (Encourage students to think about a greenhouse owner, floral shop owner, realty business owner, cattle producer, feed store dealer, agriculture advertising firm, etc.)

1. Slide 11 in EP3 Substitution

Maximum Profit


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2. Define maximum profit


3. Recall the principle of diminishing returns. How might maximum profit be related to this principle?

4. Slide 12 in EP3 Substitution (3rd bullet point)

Determined by the best combination of inputs

Organized in a way so the manager can neither add nor subtract from the business without decreasing profit

Determining maximum profit is related to the principle of diminishing returns, in which inputs can only be added up to a certain level without decreasing profit.

Objective 3: Determine and calculate the best rate of substitution.

Teaching Strategies Related Content1. Calculating the best rate of substitution

is a matter of finding out how much may be gained and how much may have to be given up with each level of substitution.


2. Use EP3.1 to calculate best rate of substitution

Step 1: Marginal rate of substitution (MRS)


Step 2: Price ratio (PR)


Step 3: Best rate of substitution


Marginal Rate of Substitution Represented as MRS Number of units replaced/number of

units added

Price Ratio Represented by PR Price of added unit/price of the replaced

unit

Best Rate of Substitution Most profitable combination MRS = PR MRS should always be greater than or

equal to PR


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3. Continue to practice more examples on EP3.1.

9. Slide 17-21 in EP3 Substitution

Review/SummarySlide 22 in EP3 Substitution

An efficient manager may be able to increase a firm’s profits through substitution. The level of substitution is determined by comparing the MRS with the PR and substituting when MRS > PR. The best rate of substitution is when MRS = PR

Review:

Slide 23-27 in EP3 Substitution Refer back to the pictures used in the interest approach. Have student recall the definition and purpose of substitution (to increase/maximize profits). Discuss with students how these substitutions have maximized profits.

Slide 28 in EP3 Substitution Exit cards: Students will answer the following questions on a note card or small slip of paper and hand to teacher as they exit:

What did you learn today about substitution? What questions do you still have about substitution?

Application

Extended ActivitiesReview last year’s FFA chapter budget, identifying at least ten instances where an alternative product could be substituted for one currently being used. This could include where groceries for FFA functions are bought, with which fundraising company the chapter uses, a particular location where a traditional FFA activity takes place like a swimming pool, bowling alley, lock-in function, how the chapter travels to state and national FFA conventions, etc. Once identified, have students locate a substitute product. Next compare price, quality, benefits, features, etc. of each product. Prepare a one-slide PowerPoint presentation for each product comparison to present to FFA officers and FFA members at the next FFA meeting.Students will identify a local or area business related to their Supervised Agricultural Experience Programs and set up an interview with the owner or manager of the business. Next, students will collaborate to draft interview questions for the owner/manager relating to the principle of substitution and how the owner/manager uses this principle to maximize profits. Once interview questions have been approved by the teacher, students will conduct the interview, taking notes to use during class discussion. Finally, teachers will facilitate a class discussion on the principle of substitution, having students contribute their interview


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findings throughout discussion.Review last year’s expenses, identifying at least eight instances where an alternative product could be substituted for the one currently being used. Once identified, have students locate a substitute product. Next compare price, quality, benefits, features, etc. between the two products. Prepare a one-page table for each product comparison to present students’ findings and conclusions. Finally, divide students into groups with like Supervised Agricultural Experience Programs and have them present their findings to others who may be interested in learning about these alternative products.

EvaluationSubstituting for an Improved School Evaluation EP3.2

Alternate - Paper-pencil Quiz Evaluation EP3.3

Answers to EvaluationEvaluation EP3.2Answers will vary. Use scoring guide on EP3.2 to assess student work.

Alternate Evaluation EP3.31. C2. B3. D4. A5. C6. C7. B


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Student Learning Objectives - missouriffa.org Substitution/EP3 Lesso… · Web viewAfter completing the lesson on substitution, students will demonstrate their ability to apply