Lesson Plan: Verdict stings Microsoft

Objective

Students will define and understand key economic terms related to the Microsoft case and antitrust suits.
Students will demonstrate an understanding of antitrust laws and their application to the Microsoft case.

Standards

National Council on Economics Education:

Standard 14: Entrepreneurs are people who take the risks of organizing productive resources to make goods and services. Profit is an important incentive that leads entrepreneurs to accept the risks of business failure.
Standard 16: There is an economic role for government in a market economy whenever the benefits of a government policy outweigh its costs. Governments often provide for national defense, address environmental concerns, define and protect property rights, and attempt to make markets more competitive. Most government policies also redistribute income.

Materials

CNNfyi article, Verdict stings Microsoft
Internet access

Procedure

1. Have students watch and review the CNNfyi news article on the software giant
2. To review the story and its implications, use the following questions:

What is Microsoft? What is a monopoly? What is capitalism? Why do monopolies run counter to the capitalist economic system? In your opinion, what is the role of the federal government in a free-market economy?
Who is Thomas Penfield Jackson? What was his ruling last year in the case of U.S. vs. Microsoft? Why were Microsoft and the U.S. government in settlement talks? Why did these talks break down? What does the term "conclusions of law" mean? How has this case affected consumers?

Assessment

1. Ask students to make a list of financial and economic terms used in the story, define them, and use them in a sentence to demonstrate their understanding. (Terms should include antitrust laws, corporate breakup, market monopoly, Nasdaq composite index, blue chip stocks, stock ratings, and any other terms that are new to the students.)
2. Refer groups of students to multimedia resources to research the Sherman Antitrust Act of 1890 and subsequent measures that gave the U.S. federal government legal ammunition in its war against monopolies. Ask students to write essays in which they address the following questions:

What is the origin of antitrust law in the United States? When were the first antitrust laws passed, and under what circumstances? Direct them to compare the intent of and circumstances behind these legislative actions to what is happening to Microsoft today in their essays.

RELATED STORIES:

Visit CNN.com for other related stories.

RELATED SITES:

The Seattle Times: Is Microsoft a monopoly?
How Microsoft is Building a Global Monopoly
Antitrust Policy

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