Download pob 1.02 curriculum guide

Course
Essential
Standard
Objective
Essential
Questions
8721 Principles of
Unit A
Business and Finance
1.00
B2 16%
Principles of Business
Understand the role of
business in the global
economy.
1.02
B2 5%
Understand economic
activities conditions.
 Why are economic activities measured? Which economic
activities are measured?
 How are economic conditions classified?
UNPACKED CONTENT
I.
II.
Economic activities are measured to determine the condition of an economy. The
economic activities that may be measured are:
A. Gross domestic product (GDP)
1. Consumer spending
2. Business spending
3. Government spending
4. Exports minus imports
B. GDP per capita
C. Labor activities
1. Employment
2. Productivity
D. Consumer spending
1. Personal income
2. Retail sales
E. Investment activities
1. Capital projects
2. Personal savings
3. The stock market
4. The bond market
F. Borrowing Activities
1. Government debt
2. Business debt
Economic conditions change in phases that make up a business cycle. Economic
conditions impact the buying power of consumers and affordability of interest rates.
A. Phases of the business cycle are:
1. Prosperity
2. Recession
3. Depression
4. Recovery
B. Buying power of consumers is affected by:
1. Inflation
2. Deflation
3. Interest rates
8721 Principles of Business and Finance
Summer 2010, Version 2
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INSTRUCTIONAL ACTIVITES
RELEVANCY TO
OBJECTIVE
RESOURCES
Going Green
Please refer to the Going Green document in the introductory materials for suggestions on
how to conserve resources while teaching this course. For example, graphic organizers
are used to guide students in taking notes. Alternative methods are suggested in the
Going Green document to provide this material to students.
Course PLC
Please refer to the Course PLC document in the introductory materials for directions to
join the Moodle Professional Learning Community (PLC) for this course.
1
Measuring Economic Activities
Helps students
Textbook
Introduction
begin to
UNDERSTAND
 Have students read Focus on Real
(B2) the concept
Life on page 34 in Intro to
of measuring
Business, 6e, Thomson
economic
Southwestern textbook or use a
activities
current event to explain economic
activities.
 Facilitate a discussion about
measurement of situations,
specifically economics.
1. How have you measured a recent
circumstance such as the number
of relatives who attended your
birthday party?
2. How was the information from the
measurement used? For example,
will you invite the same relatives to
another party?
 Have students read Focus on Real
Life on page 44 in Intro to
Business, 6e, Thomson
Southwestern textbook or use a
current event that covers capital
projects and how they are funded.
 Facilitate a discussion using these
questions:
1. How have you or someone you
know planned for the purchase of
an expensive item?
Instructional Activities continued on the next page.
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 32
2
3
INSTRUCTIONAL ACTIVITES
2. Visualize your community. What are
some projects that are underway,
such as construction (commercial
buildings or residential communities),
installation of new equipment, or
expansion of government services?
3. How are these projects funded?
Measuring Economic Activities Reading
or PowerPoint Presentation
 Present to students the concept of
measuring economic activities.
 Facilitate students completing the
Measuring Economic Activities
Organizer. Students may obtain
information by reading pages 34-37 and
44-47 in Intro to Business, 6e,
Thomson South-Western textbook OR
by participating during presentation of
PowerPoint Presentation 1.02, slides
1-11.
NOTE: Assist students with thinking of
examples of economic activities.
 Facilitate a discussion about causes of
possible economic concerns in America
and in other societies around the world.
 Collect organizers, and then sort to
check who did and who did not complete
one. Look closely for examples
whenever requested. Examples will help
students to classify the measurements of
economic activities. NOTE: This activity
is a formative assessment.
Measuring Economic Activities Terms
Have students complete the Measuring
Economic Activities section of Very
Important Business Terms Activity.
RELEVANCY TO
OBJECTIVE
Helps students
UNDERSTAND (B2)
the categories of
economic measurement
RESOURCES
Measuring
Economic
Activities
Organizer
Textbook
PowerPoint
Presentation
1.02, slides 111
Helps students
UNDERSTAND (B2)
terms associated with
measuring economic
activities and determine
why each is important
Measuring
Economic
Activities
Sections of
Very Important
Business
Terms Activity
Instructional Activities continued on the next page.
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 33
RELEVANCY TO
OBJECTIVE
Helps students
COMPARE (B2) GDP,
GDP per capita, and
unemployment rate
among several
countries
INSTRUCTIONAL ACTIVITES
Comparing Economic Measurements
 Review figure 2-1 located on page 34 in
the Intro to Business, 6e, Thomson
Southwestern textbook. Use Applied
Skills Activity on page 35 in the Intro
to Business, 6e, Thomson
Southwestern textbook as a guide for
the next task.
 Facilitate students working in groups of
three to complete GDP Map Activity.
NOTE: Groups may obtain information
from website: www.theodora.com/wfb
to complete Part 1 of activity. Monitor
discussions for students’ understanding
of how to compare data.
 Optional: If students are having
difficulty grasping the concept of
measuring GDP, refer to the DecisionMaking Activity on page 50 in the Intro
to Business, 6e, Thomson
Southwestern textbook.
 Review the purpose of using GDP,
population, GDP per capita, and
unemployment rate information to
measure economic activities.
5
Economic Conditions Introduction
Helps students begin to
 Have students read Focus on Real Life UNDERSTAND (B2)
the concept that
on page 38 in Intro to Business, 6e,
Thomson Southwestern textbook or use economic conditions
change
a current event about the economy.
 Facilitate a discussion about changing
economic conditions using these
questions:
1. What are some changes in the
economy or business activities that
have taken place within the last year?
2. How have the changes impacted
consumers (government, businesses,
and individuals)?
Instructional Activities continued on the next page.
4
8721 Principles of Business and Finance
Summer 2010, Version 2
RESOURCES
Textbook
GDP Map
Activity
Website:
www.theodora.
com/wfb
Textbook
Page 34
RELEVANCY TO
OBJECTIVE
Helps students
CLASSIFY (B2)
economic conditions
INSTRUCTIONAL ACTIVITES
Economic Conditions Reading or
PowerPoint Presentation
 Present to students the concept that
economic conditions change according
to the four phases of the business cycle.
Facilitate students completing Economic
Conditions Organizer. Students may
obtain information by reading pages 3842 in Intro to Business, 6e, Thomson
Southwestern textbook OR by
participating during presentation of
PowerPoint Presentation 1.02, slides
12-17.
 For Part B of the organizer, use activity
#7 on page 49 in the Intro to Business,
6e, Thomson Southwestern textbook as
a guide. Discuss the possible actions of
businesses during each phase of the
business cycle.
1. Prosperity: Businesses continue making
profits. Example: Macy’s department
store may continue with business as
usual.
2. Recession: Businesses strategize to
stimulate demand for products and
services. Example: United States Post
Office may expand shipping services by
picking up packages from customers’
door steps and make pricing easier for
customers to determine.
3. Depression: Businesses try to maintain
profits or break even to avoid going out
of business. Example: Walmart may
change all customer service
representatives from full-time to parttime employees without benefits.
4. Recovery: Businesses will increase
human capital. Example: IBM may travel
to several college campuses to recruit
new employees.
 Review the four phases of the business
cycle, the main causes of inflation, and
how interest rates affect businesses.
Instructional Activities continued on the next page.
6
8721 Principles of Business and Finance
Summer 2010, Version 2
RESOURCES
Economic
Conditions
Organizer
Textbook
PowerPoint
Presentation
1.02, slides 1217
Page 35
7
8
INSTRUCTIONAL ACTIVITES
 Collect organizers, and then sort to
check who did and who did not
complete one. Especially look for
examples whenever requested.
Examples will help students to
classify economic conditions.
 Based on results of the previous task,
facilitate a discussion about examples
for classifying economic conditions.
 NOTE: This activity is a formative
assessment.
Measuring the Economy Activity
 Review with students the formula for
calculating consumer price index
(CPI).
 Have students complete the
Measuring the Economy Activity.
 After students complete the activity,
have a few to explain which
economic conditions represent each
phase of the business cycle.
 Also, have a few students to show or
explain how they calculated the CPI
inflation rate.
 Facilitate a discussion for students to
explain why they think inflation
happens and if it is a negative or
positive measurement of an
economy.
Economic Conditions Terms
Have students complete Economic
Conditions section of Very Important
Business Terms.
9
RELEVANCY TO
OBJECTIVE
Textbook
PowerPoint
Presentation 1.02,
slides 12-17
Helps students
UNDERSTAND (B2)
how to calculate CPI
and use it as a
measurement of
economic activity
Measuring the
Economy Activity
Measuring the
Economy Activity
Key
Economic
Conditions
Organizer
Helps students
UNDERSTAND (B2)
terms associated with
classifying economic
conditions
Helps students
EXPLAIN (B2) how
business activities may
impact economic
conditions
Impact of Economic Conditions
 Note for the next task, students will
need access to print or online
resources to research one of the
listed emerging business issues.
 Assign students to teams of two or
three members
Instructional Activities continued on the next page.
8721 Principles of Business and Finance
RESOURCES
Summer 2010, Version 2
Economic
Conditions section
of Very Important
Business Terms
Print or online
resources for
researching
specific emerging
business issues
Page 36
RELEVANCY TO
OBJECTIVE
INSTRUCTIONAL ACTIVITES
 Facilitate teams researching and
presenting if they agree or disagree
with one of the emerging issues:
1. Purchasing of correctional
institutions by businesses
2. Providing $8,000 tax credit for
first-time home buyers
3. Increasing employment
opportunities in manufacturing
 Facilitate teams classify which phase
of the business cycle the issue would
most likely occur and state why.
 Facilitate teams presenting issues
and results of activity including most
likely phase of the business cycle,
and positions on issues.
 Use rubric at http://www.fblapbl.org/docs/FBLARatingSheets2009
FINAL.pdf for scoring presentations.
NOTE: Adapt the rubric as
necessary.
 Use Emerging Business Issues Event
on page 51 in the Intro to Business,
6e, Thomson South-Western
textbook as a guide.
10
Economic Conditions Minute Paper
Helps students
 NOTE: For the next task students will SUMMARIZE
(B2) what they
need access to Intro to Business,
learned and
6e, Thomson South-Western
which area they
textbook, organizers, and activities
need more clarity
completed for this objective.
 Facilitate students completing a
minute paper to elicit information
about comprehension of economic
conditions by allowing students to
respond to statements:
1. Describe the most important point
you learned in this objective.
2. Describe which point remains least
clear to you.
Instructional Activities continued on the next page.
8721 Principles of Business and Finance
Summer 2010, Version 2
RESOURCES
Website:
http://www.fblapbl.org/docs/FBLARatin
gSheets2009FINAL.pdf
Textbook
Textbook
Organizers and
activities
Page 37
11
L-
INSTRUCTIONAL ACTIVITES
Supplemental
Economic activities and conditions
 Ask students if their career plans
include improving the quality of life for
others?
 Discuss the relationship between
students’ responses to previous
question and economic development.
Refer to partial list of related careers
on page 33 in Intro to Business, 6e,
Thomson South-Western textbook or
in Occupational Outlook Handbook at
website www.bls.gov/oco .
 Have students read Planning a
Career in… on page 33 in Intro to
Business, 6e, Thomson SouthWestern textbook.
 Discuss how economic activities and
conditions could impact economic
development. For example: A local
millionaire loaned several prospective
small business owners money as
start-up funds. This service could be
an indicator for borrowing activities
and the prosperity phase of the
business cycle.
 Invite guest speakers representing
the economic development field.
RELEVANCY TO
RESOURCES
OBJECTIVE
Helps students
Textbook
UNDERSTAND
(B2) personal
Website:
relevance to
www.bls.gov/oco
economic
activities and
conditions
–Literacy
Strategy: The very important business terms activity is a writing assessment
that allows students to write statements about why each term is important to the content for
which it is being used. Students are able to reflect on the terms in order to process their own
thoughts and learning of how the terms are important to the content area.
–Numeracy Strategy: To make a Math-to-Life Connection is to see a relationship
between a math concept and a real-life situation. Finding math-to-life connections greatly
increase the relevance of new information and skills being learned.
–Literacy Strategy: The minute paper is a classroom assessment of both teaching
approach and techniques. The approach is the more you know about what and how students
are learning; the better planning of learning activities to structure teaching. The techniques
are mostly simple, non-graded, anonymous, in-class activities that give useful feedback on
the teaching-learning process.
8721 Principles of Business and Finance
Summer 2010, Version 2
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Instructional Support Material
Textbook
Intro to Business, 6e, Thomson SouthWestern
Websites
www.theodora.com/wfb
http://www.fblapbl.org/docs/FBLARatingSh
eets2009FINAL.pdf






Handouts (included)
Measuring Economic Activities
Organizer
Very Important Business Terms
GDP Map Activity
Economic Conditions Organizer
Measuring the Economy Activity
Measuring the Economy Activity Key
8721 Principles of Business and Finance
www.bls.gov/oco (Supplemental)
Other
 PowerPoint Presentation 1.02
(separate file)
 Print or online resources for
researching specific emerging business
issues
 Assessment Prototypes (included)
Summer 2010, Version 2
Page 39
Name ____________________ Class __________ Date __________
Measuring Economic Activities Organizer
Directions: Provide the requested information.
Ways to Measure Economic Activities
Describe Gross Domestic Product (GDP)
Write the major categories and other examples of economic activities included in the GDP
Category
Category
Category
Category
Example
House valued at
$150,000
2. GDP per
capita
determines
____________
____________
____________
Example
$5,000 monthly lease
for a beauty salon
=
8721 Principles of Business and Finance
Example
Concert sponsored by
the city
Example
÷
Summer 2010, Version 2
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Measuring Economic Activities Organizer Continued
3. Labor
Activities
Employment
Which people are included in the unemployment rate?
Productivity
How can productivity be increased?
Examples
Sheetz convenience store provides touch-screen computers for customers to place
food orders instead of sales associates taking food orders.
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
8721 Principles of Business and Finance
Summer 2010, Version 2
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Measuring Economic Activities Organizer Continued
Consumer Spending
List and describe the economic indicators for consumer spending
Includes:
Includes:
Investment Activities
Describe how the listed investment activities promote economic growth.
Personal Savings
The Stock Market
The Bond Market
Examples
Mary has saved over $800
in a local bank.
Examples
Jason purchased stock of a
pharmaceutical company.
Examples
A bond passed that will
fund several city parks.
Jack borrowed $600 from a
local bank to buy a new
oven.
8721 Principles of Business and Finance
Summer 2010, Version 2
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Measuring Economic Activities Organizer Continued
Borrowing Activities
Government
Businesses
Describe how government borrowing can
lead to a budget deficit.
8721 Principles of Business and Finance
Describe how using borrowed money
wisely can impact businesses.
Summer 2010, Version 2
Page 43
Name_________________________
Class ________________ Date _________
Very Important Business Terms Activity
Directions: In the right-hand column of the table, describe why the terms listed in the
left-hand column are important.
Measuring Economic Activities
Very Important
Why is the term important to business?
Business Term
Gross domestic
Example: GDP indicates the health and growth of an economy.
product (GDP)
If the GDP for a country is steadily increasing, this is usually an
indication of higher demands for goods and services. A higher
demand for goods and services result in more goods and
services being produced.
GDP per capita
Productivity
Personal income
Retail sales
Capital projects
8721 Principles of Business and Finance
Summer 2010, Version 2
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Very Important Business Terms Continued
Stock
Bond
Economic Conditions
Business cycle
Prosperity
Recession
Depression
Recovery
Inflation
Deflation
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 45
Name ____________________ Class __________ Date __________
GDP Map Activity
Directions: Select three countries of your choice from the website
www.theodora.com/wfb and obtain requested information about each one.
"english.freemap.jp." Free blank outline world maps. 11 Jan 2006. Sankakukei, InoueKeisuke. 14 Nov 2008
<http://english.freemap.jp/world_e/img/4/2.gif>.
Part 1
Country 1
Country 2
Country 3
GDP last year
Population last year
GDP per capita last
year
GDP two years ago
Population two
years ago
GDP per capita two
years ago
Part 2
Using each country’s GDP for one and two years ago, write a statement about each
one’s economic performance.
Country 1 ___________________________________________________________
Country 2 ___________________________________________________________
Country 3 ___________________________________________________________
Part 3 Locate each country on the map above and mark the location of the countries.
8721 Principles of Business and Finance
Summer 2010, Version 2
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Name ____________________ Class __________ Date __________
Economic Conditions Organizer
Directions: Provide the name and a brief description in your words of each phase of the business cycle.
Part A
The Four Phases of the Business Cycle
8721 Principles of Business and Finance
Summer 2010, Version 2
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Economic Conditions Organizer Continued
Part B
Situation
Employment
trend
Prosperity
Recession
Depression
Supply and
demand of
goods and
services trend
Possible
actions of
businesses
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 48
Recovery
Economic Conditions Organizer Continued
Part C
Inflation
Define:
Consumer Prices
Deflation
Define:
How may high demand and limited supply
of products cause inflation?
How do lower prices impact deflation?
How does inflation impact consumer
buying power?
What is consumer price index (CPI)? ________________________________________
______________________________________________________________________
______________________________________________________________________
How is the consumer price index (CPI) calculated?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
What are interest rates? _________________________________________________
______________________________________________________________________
______________________________________________________________________
How do interest rates impact businesses? ____________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 49
Name ____________________ Class __________ Date __________
Measuring the Economy Activity
Part A
Directions: Label the business cycle curve. Then, use the list of economic conditions
below to describe each phase of the business cycle by putting the correct conditions in
the appropriate box.
Economic Conditions
Highest period of economic growth
Low unemployment
Economic slowdown
Prolonged recession
Highest point of the business cycle
Renewed economic growth
Increase in output of goods and services
High consumer spending
Production slows down
High unemployment
Extremely low consumer spending
Moderate business expansion
High output of goods and services
Drastic decrease in production
Decrease in consumer spending
Increased consumer spending
Reduced unemployment
Rise in unemployment
Prosperity
Depression
Recovery
Recession
8721 Principles of Business and Finance
Summer 2010, Version 2
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Part B
Directions: Complete the activity using your Economic Conditions Organizer and the
following formula:
Change in price index
Inflation rate = –––––––––––––––––– X 100
Initial price index
Find the CPI inflation rate for the following examples. Round to the nearest tenth.
1. In 2006, the average price of a new house in the United States was $301,000. In
2007, the average price of a new home in the United States was $314,600. What is the
CPI inflation rate from 2006 to 2007? Show your calculations.
2. The average price of a movie ticket in 1946 was $0.55. In 2006, the average price of
a movie ticket was $6.04. What was the CPI inflation rate of movie tickets from 1946 to
2006? Show your calculations.
3. A gallon of milk was on average $1.00 in 1957. In 2007, the average gallon of milk
costs $3.00. What is the CPI inflation rate of a gallon of milk between 1957 and 2007?
Show your calculations.
8721 Principles of Business and Finance
Summer 2010, Version 2
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Name ____________________ Class __________ Date __________
Measuring the Economy Activity KEY
Part A
Directions: Label the business cycle curve. Then, use the list of economic conditions
below to describe each phase of the business cycle by putting the correct conditions in
the appropriate box.
Prosperity
Recession
Recovery
Depression
Economic Conditions
Highest period of economic growth
High unemployment
Low unemployment
Extremely low consumer spending
Economic slowdown
Moderate business expansion
Prolonged recession
High output of goods and services
Highest point of the business cycle
Drastic decrease in production
Renewed economic growth
Decrease in consumer spending
Increase in output of goods and services
Increased consumer spending
High consumer spending
Reduced unemployment
Production slows down
Rise in unemployment
Prosperity
Low unemployment
Highest point of the business cycle
High consumer spending
High output of goods and services
Depression
Prolonged recession
High unemployment
Extremely low consumer spending
Drastic decrease in production
Recovery
Highest period of economic growth
Increase in output of goods and services
Moderate business expansion
Increased consumer spending
Reduced unemployment
Renewed economic growth
Recession
Economic slowdown
Production slows down
Decrease in consumer spending
Rise in unemployment
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 52
Part B
Directions: Complete the activity using your Economic Conditions Organizer and the
following formula:
Change in price index
Inflation rate = –––––––––––––––––– X 100
Initial price index
Find the CPI inflation rate for the following examples. Round to the nearest tenth.
1. In 2006, the average price of a new house in the United States was $301,000. In
2007, the average price of a new home in the United States was $314,600. What is the
CPI inflation rate from 2006 to 2007? Show your calculations.
Inflation rate = $13,600 x 100
$301,000
Inflation rate = 4.52%
2. The average price of a movie ticket in 1946 was $0.55. In 2006, the average price of
a movie ticket was $6.04. What was the CPI inflation rate of movie tickets from 1946 to
2006? Show your calculations.
Inflation rate = $5.49 x 100
$0.55
Inflation rate = 998.18%
3. A gallon of milk was on average $1.00 in 1957. In 2007, the average gallon of milk
costs $3.00. What is the CPI inflation rate of a gallon of milk between 1957 and 2007?
Show your calculations.
Inflation rate = $2.00 x 100
$1.00
Inflation rate = 200.00%
8721 Principles of Business and Finance
Summer 2010, Version 2
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ASSESSMENT PROTOTYPES
Note: These assessment prototypes are examples of the types of items included in the
item bank. All items are comparable to the cognitive process of the understand verb.
Questions require students to demonstrate that they understand the content.
Assessment prototypes will not be used on the secured test, but questions in similar
formats will be used.
The state department collects monthly reports of total sales from all newspaper
companies in North Carolina. This information would be useful for which measurement
of economic activities?
A. Borrowing
B. Consumer spending
C. Investment activities
D. Labor activities
ANSWER: B
A report about the economy reveals a decreasing unemployment rate, consumer buying
of goods and services is increasing significantly, and the GDP is rising. Which business
cycle does this report cover?
A. Depression
B. Prosperity
C. Recession
D. Recovery
ANSWER: D
8721 Principles of Business and Finance
Summer 2010, Version 2
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