Living on One Dollar / Micro Loans

Before We Begin:

• Discuss what the following terms mean:
• Productive Resources
• Opportunity Costs
• Three Basic Questions
• What to produce?
• How to produce it?
• For whom to produce?
• Supply and Demand
• Factors that cause changes in market supply and demand
• The basic function of money in society?

Living on One Dollar (2013): This movie is available on Hulu and Netflix, but it's currently also available on YouTube.  (https://youtu.be/tmQujWTMuC8)

Here's more information on Micro Loans -- a concept being evangelized by actress Natalie Portman.  "Natalie Portman: Small Loans Go a Long Way". This is an explanation of how programs like FINCA can make a difference in the lives of the worlds poor -- especially for women. Assignment: Answer the following questions:

1. What are the economic “productive resources” of the radish farm?
2. What were some of the “opportunity costs” made by the native population?
3. How does the “Traditional Economic System” handle the three basic systems of what to produce, how to produce it, and for whom to produce?
4. Define “Supply and Demand” and give examples from the movie.
5. What are some factors that cause changes in market supply and demand?
6. What is the basic function of money in this society?  Why don’t they trade through barter?
7. How does a "micro loan" help a family out of poverty?
8. Why do "micro loans" help women more than men, typically.

Tennessee Economic Standards: E.1, E.2, E.6, E.11, E.17, E.49

Finally, why give someone a loan when you can give them a donation?