Economics is designed to equip students with the knowledge and tools necessary to understand the mechanics and functions of the American economic system. Key elements include the study of scarcity, supply and demand, market structures, the role of government, national income determination, money and the role of financial institutions, economic stabilization, trade and interdependence, and comparative economic systems. As a result of acquiring information and developing a reasoned approach to decision making, students will be able to make informed choices in their respective roles as consumers, producers, employees, employers, borrowers, lenders, savers, investors as well as voters.
Strands: Deductive Reasoning, Graph and Chart Interpretation, Data Analysis, Microeconomics, Macroeconomics, International Trade and Levels of Economic Activity
|Competency Goal 1||The learner will demonstrate the role of economic choices within a market economy.|
1.01 Define the categories of productive resources and site examples of each.
1.02 Explain the condition of scarcity and relate the concept of scarcity to choice, opportunity costs, and tradeoffs.
1.03 Identify and explain broad economic and social goals.
1.04 Compare and contrast traditional, market, command, and mixed economic systems and their responses to production.
1.05 Describe the impact of defined and enforced property rights on a market economy.
1.06 Describe consumer response to positive and negative incentives.
1.07 Predict how interest rates act as an incentive for borrowing and saving.
1.08 Formulate a savings or financial investment plan for a future goal.
1.09 Identify the conditions for voluntary exchange.
1.10 Analyze public policy issues affecting decision making within a community.
|Competency Goal 2||The learner will analyze the role that supply and demand, prices, and profits play in determining production and distribution in a market economy.|
2.01 Define supply and demand and identify factors that cause changes in market supply and demand.
2.02 Explain the functions of supply and demand.
2.03 Describe the role of producers and consumers in determining the equilibrium price.
2.04 Explain the concept of consumer sovereignty.
2.05 Explain the function of profit in a market economy.
2.06 Describe the primary factors of production and their impact on the standard of living.
2.07 Explain how financial markets channel funds from savers to investors.
|Competency Goal 3||The learner will analyze the organization and role of business firms and assess the various types of market structures in the United States economy.|
3.01 Compare and contrast the different types of business organization.
3.02 Identify various ways firms finance operations and explain the advantages and disadvantages of each way.
3.03 Explain the evolution and role of labor organizations and cooperatives in market economies.
3.04 Describe the four market structures in the United States and the impact of government regulations on them.
3.05 Describe the benefits of natural monopolies and the purposes of government regulation of these monopolies.
3.06 Analyze the importance of competition among producers.
3.07 Explain the role of marginal analysis in determining prices and output.
|Competency Goal 4||The learner will evaluate the roles of government in a market economy.|
4.01 Explain the basic functions of government in a market economy.
4.02 Identify ways the government responds to market failures.
4.03 Describe major revenue and expenditure categories and their respective proportions of local, state, and federal budgets.
4.04 Explore ways tax revenue is used in the community.
4.05 Define progressive, proportional, and regressive taxation.
4.06 Describe how and when costs of government policies may exceed benefits.
4.07 Distinguish between federal deficits and the national debt and predict their future effects on the economy.
4.08 Predict the effects of federal spending and taxation on budget deficits and surpluses and the national debt.
|Competency Goal 5||The learner will examine the various ways economic performance is measured.|
5.01 Describe the various economic performance indicators and explain how they are calculated.
5.02 Explain the limitations of using GDP to measure economic welfare.
5.03 Describe the nature and causes of business cycles and analyze the impact of major events on them.
5.04 Identify the causes of inflation and analyze its impact on economic decisions.
5.05 Assess how individual spending and production decisions impact levels of income, employment, and prices.
5.06 Identify causes and effects of inflation, and analyze its impact on economic decisions.
5.07 Illustrate and explain the determinant of unemployment and inflation in an economy.
5.08 Compare and analyze current unemployment rates at the local, state, and national levels.
5.09 Propose solutions for addressing issues of unemployment in the community.
|Competency Goal 6||The learner will describe the role of money and financial institutions in a market economy.|
6.01 Explain the basic functions of money.
6.02 Identify the composition of the money supply of the United States.
6.03 Explain the role of banks and other financial institutions in the economy of the United States.
6.04 Describe the organization and functions of the Federal Reserve System.
6.05 Compare and contrast credit, savings, and investment services available to the consumer from financial institutions.
6.06 Research and monitor financial investments, such as stocks, bonds, and mutual funds.
6.07 Formulate a credit plan for purchasing a major item comparing different interest rates.
|Competency Goal 7||The learner will assess economic stabilization policies and how they impact the economy.|
7.01 Define and explain fiscal and monetary policy.
7.02 Describe the negative impact unemployment and unintended inflation has on the economy.
7.03 Explain how monetary policy affects the level of inflation.
7.04 Analyze the role of taxation and fiscal policy in promoting price stability, full employment, and economic growth.
7.05 Analyze the purpose of monetary tools used by the Federal Reserve.
7.06 Articulate the impact of monetary or fiscal policy on purchasing decisions.
|Competency Goal 8||The learner will analyze the international dimensions of economics.|
8.01 Explain the benefits of trade among individuals, regions, and countries.
8.02 Define trade barriers, such as quotas and tariffs, and site how different countries use them.
8.03 Distinguish between balance of trade and balance of payments.
8.04 Compare and contrast labor productivity trends in the United States and other developed countries.
8.05 Discuss the concept of balance of trade and explain its benefits and costs.
8.06 Explain the impact of exchange rates on purchasing power.
8.07 Evaluate the benefits and costs of free trade.