2. experience a mock stock market crash.

1. The teacher should precede this activity with some background information about the Stock Market Crash of 1929. A good resource for students is "Some Questions and Answers About the Great Depression" found in the March 1984, issue of Cobblestone Magaz ine.

2. Prior to beginning the activity, the teacher should reproduce sufficient copies of the accompanying "Game Money" and "Quaggle Certificates" to complete the game. (See ERIC Document ED430841 to obtain the handouts. Click here for information about obtaining ERIC Documents.)

3. The teacher should begin the activity by explaining that the class will be playing an economics game, and that each student will be given a certain amount of money to buy a certain product. They may spend as much or as little money as they want to on the product, but the object of the game is to make as much money as possible by the end of the game.

4. The teacher will pass out $10 to each child in 1/3 of the class, $23 to each child in 1/3 of the class, and $50 to each remaining child. This is to simulate different classes of people in society.

5. The teacher will then begin the game by announcing that the products being sold are "Quaggles," a rare and desirable commodity, and that if students buy them today, they will cost $2. Prices may change tomorrow, and each student may only buy three tod ay. (Note that the class can play this game over several days or the time can be compressed as the teacher desires.) The teacher will allow students to buy Quaggles until all students have had a turn. As each student purchases a Quaggle, the teacher g ives them a "Quaggle Certificate," certifying that they have purchased one Quaggle. Students receive one certificate for each Quaggle purchased.

Quaggle Expenses

I started with $________________ and _______________ Quaggles

I ended with $________________ and _______________Quaggles

I made a profit of $__________ or I lost $______________

6. The game continues as follows:

Day 2 The price doubles, costing $4 per Quaggle. Kids who bought on day one can sell their Quaggles to friends for no more than $3. Students may buy and sell as many Quaggles as they want from now on. The teacher limits the amount of time for buying and selling Quaggles to 10 minutes each day.

Day 3 The cost of buying Quaggles goes up again to $6. Kids can sell their Quaggles for no more than $5.

Day 4 The cost of buying Quaggles rises to $10. Kids can sell their Quaggles for no more than $9.

Day 5 Today Quaggles from the teacher cost $18. Kids can sell their Quaggles for up to $17.

Day 6 The cost goes up again to $34. Kids can sell their Quaggles for up to $33.

Day 7 The cost of Quaggles drops to $30. Kids can sell their Quaggles for up to $29.

Day 8 The cost of Quaggles jumps to $35. Kids can sell their Quaggles for $34.

Day 9 The cost rises again to $40. Kids can sell their Quaggles for $39.

Day 10 The cost jumps to $50. Kids can sell their Quaggles for $49.

Day 11 The teacher announces that the "Quaggle" is really just the certificate that the students are buying, and that today Quaggles only cost $1. At the end of the 10 minute trading period, students should sit down with whatever they have. Students will then use their Quaggles and money to fill out the accompanying "Quaggle Expenses Sheet."

7. The teacher should lead a discussion of results of the Quaggle exchange, and conclude it by explaining that what they just went through was similar to the Stock Market Crash in the 1920s. Stocks (part of companies) were bought and prices rose up and u p while people sold them for more than they were worth. Then on October 29, 1929, people realized they were paying too much when stock prices fell lower and lower and lower. Many people who invested a lot of money in stocks could not sell them even at the price they originally paid causing them to lose money.