Invention Convention Reflection

Posted: September 28, 2010 in Social Studies 10

The Invention Convention activity was used to teach us about several different economic principles.  We were taught how to calculate total revenue and profit and loss.  We were taught the roles that producers and consumers play in the marketplace.  And ultimately, we were given a sense of entrepreneurship.  The activity was a small-scale version of real business.  In the activity, our table groups formed companies and we had to create a product.  In my case, we formed Tanish Corp.  and invented the Shuich-It, a multi-purpose weapon of mass destruction.  We then created short sales pitches and attempted to sell our product.  We grossly overestimated the publics reaction to the Shuich-It and failed to sell any, resulting in a loss of $22.50.

We used the final results of the activity to calculate the revenue, and the profit or loss.  To calculate total revenue we multiplied the number of products sold and the price it sold for.  In our case, this resulted in a revenue of 0.  Then, to find whether our product had earned us a profit or lost us money, we subtracted the production cost from our total revenue, and the resulting number was -22.5.  This meant that our loss was a loss of $22.50.

The relationships between producers and consumers in the market fuel the world economy.  It is the producers role in the economy to create products that the consumer would find valuable.  They must market these products and hopefully sell them.  Once the consumer pays to buy that product, then the money is used to produce more and create a larger profit.  The consumer likely earned the money used for buying the product by selling goods or services to another consumer.  It is exchanges like this that keep the economy healthy and strong.  In the 2008 financial crisis, one of the factors leading up to the global recession was a lack of people buying goods, and that’s the reason people were given stimulus checks.  It’s the duty of consumers to take it upon themselves to keep the economy healthy.

As entrepreneurs in this activity, we created a product and put at ourselves at risk for either financial gain or loss.  This gave us a sense of the risks occurring every day, all over the world.  In my groups experience, we were met with a financial disaster, but in groups such as the group that produced the Bikkuri, they discovered the amazing benefits entrepreneurship can bring.  The reasons why the successful groups were successful were cheap production costs and an effective design.  My groups design was not nearly as effective at what it advertised to be, and it cost a lot to make, creating a poor company that was unlikely to sell its product.  If I were to redo this project, I would have certainly attempted to lower production costs.

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Comments
  1. 13nakami says:

    I liked your explanation of why you and group themselves were the entrepreneurs. I did not realize this clearly until I read that last paragraph. You gave a very clear and yet succinct explanation, which was very easy to understand. I especially liked your comparison with the Bikkuri product.

    As a side note, you might want to talk about the marketplace more, and its relationship with the project itself.

    Sweet summary as a total though. Nice job!

  2. 13swarva says:

    I like how you roll, short and sweet! Something I liked very much is how you acknowledged other people’s project. How you integrated the Bikkuri product in there. I should do that next time. A little more detail would be better would be better. But I like how you thought of yourselves as entrepreneurs. Overall a very nice walkthrough of this project.

    I like very much!

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