Download Chapter Objectives

Chapter Objectives:
Chapter 1 Objectives:
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To define economics and introduce the scarcity problem, which underlies economics.
To understand the relationship between scarcity and choice.
To define opportunity cost.
To explore how efficiency and equity are related to the problem of scarcity.
To identify four factors of production and the income return to each type of factor.
To differentiate between economic theory and economy policy.
To introduce the tools economists use to express theories and policies.
To use the production possibilities model to illustrate and explain the basic problem of
scarcity.
To differentiate between macroeconomics and microeconomics.
To explain how to construct a graph and interpret the illustrated relationship.
Chapter 2 Objectives:
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To describe differences among traditional, market, and planned economies, and how the
basic economic choices are made in each of these systems.
To explain how market economies are structured and how they operate.
To explain why, where, and how government intervenes in mixed economies, chiefly the
U.S. economy.
To distinguish between capitalism and socialism, and to describe how these two systems
relate to individual and collective economic decisions.
To explore the British foundations and the historical highlights of the U.S. economy
To have all students participate and work well as a team.
To Design a PowerPoint presentation and poster.
To create a five-paragraph essay based on the information provided in the presentation.
Chapter 3 Objectives:
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To explain what economists mean by demand, the Law of Demand, supply, and the Law of
Supply.
To demonstrate how demand and supply work, using schedules and graphs.
To explain how price changes affect the quantity of a good demanded or supplied.
To show how demand and supply curves shift with changes in underlying nonprice
influences.
To distinguish between a change in the quantity demanded or supplied (a movement along
a curve), and a change in demand or supply (a shift of a curve).
To demonstrate how demand and supply interact in markets to determine prices.
To define and illustrate equilibrium price, equilibrium quantity, shortages, and surpluses in
a market.
Chapter 4 Objectives:
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To introduce the three fundamental areas on which macroeconomics focuses: employment,
prices, and production.
To define unemployment, explain its consequences, and identify different types of
unemployment.
To introduce common measures and statistics on employment and unemployment and
discuss the interpretation of these data.
To discuss full employment.
To define inflation, explain its consequences, and identify its causes.
To introduce measures and statistics on inflation.
To distinguish between deflation and disinflation.
To define full production and economic growth.
To identify factors contributing to economic growth and to introduce some costs associated
with growth.
To introduce GDP, the primary measure or production.
To define productivity and discuss changes in U.S. productivity over the years.
Chapter 5 Objectives:
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To introduce the basic economic choices that must be made in every society because of
scarcity.
To describe differences among traditional, market, and planned economies, and how the
basic economic choices are made in each of these systems.
To explain how market economies are structured and how they operate.
To explain why, where, and how government intervenes in mixed economies, chiefly the
U.S. economy.
To distinguish between capitalism and socialism and to describe how these two systems
relate to individual and collective economic decisions.
To discuss economic changes in Eastern Europe.
To explore the British foundations and the historical highlights of the U.S. economy
Chapter 6 Objectives:
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To identify the major types of expenditures and the major sources of revenue of the federal,
state, and local governments.
To distinguish among progressive, proportional, and regressive taxes.
To discuss recent tax issues and reforms.
To introduce fiscal policy, explain its mechanics, and differentiate between discretionary
and automatic fiscal policy.
To define a surplus, balanced, and deficit budget, and identify the economic impact of each.
To explain the relationship between the federal budget and fiscal policy.
To discuss some realities of fiscal policy and the budgetary process that can hamper the
attainment of fiscal policy objectives.
To define the national debt, explain its financing, size, and burden on taxpayers, and
introduce crowding out.
Chapter 7 Objectives:
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To define money and explain the functions of money.
To identify the various measures and components of the U.S. money supply and different
monetary standards.
To introduce the financial institutions that are important for the maintenance and control
of the U.S. money supply, and to highlight commercial banks and commercial bank
regulation.
To explain the role of the Federal Reserve System, its organization, and the functions that
Federal Reserve Banks perform.
To discuss recent legislative and structural changes in the financial institutions system.
Chapter 8 Objectives:
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To explain the relationship between the economy’s money supply and output, employment,
and prices.
To explain how money is created and destroyed through the loan-making activities of
financial depository institutions.
To introduce the multiple expansion of money.
To explain the role of the interest rate in encouraging or discouraging borrowing from
financial depository institutions.
To show how interest rates are affected by changes in financial depository institutions’
excess reserves.
To define monetary policy and explain the major tools for carrying out monetary policy by
the Federal Reserve.
To show the relationship between government borrowing to cover deficit spending and
monetary policy.
To critically evaluate monetary policy.