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WS/FCS Unit Planning Organizer Subject(s) Grade/Course Unit of Study Unit Title Pacing Social Studies 10th Grade Civics and Economics Unit 6 The Free Market and Role of Government 16 Days • • • Conceptual Lenses Economics Competition Choices Unit Overview The sixth unit in Civics and Economics examines the free market and role of government in economic activity through the lenses of economics, competition, and choice. The points of focus for this unit include: • • • • • • • Scarcity: Scarcity influences production and decision-making, and can cause economic interdependence or conflict. Economic Systems: There are four economic systems that exist in the world. Production in each economic system is different. Market Economy: Market economies are influenced by supply and demand and have an economic circular flow. Supply and Demand: The forces of supply and demand dictate business activities. Competition: Competition is essential in a market economy. Role of Government: The role of the government is minimal but necessary in a free market economy. The government uses fiscal and monetary policy to manage the economy. The government creates or allows the creation of different organizations to assist with economic activity. Economic Activity in America: The economic activity at the national, state, and local level have similarities and differences. Unit Enduring Understanding(s) 1. Scarcity influences economic decisions. 2. Economic systems determine how economic decisions are made. 3. Supply and demand determine price and quantity of production in a market economy. 4. Market economies offer more economic freedom to individuals by encouraging competition and limiting the role of government. 5. The economic focus within an area is often determined by its resources. Unit Essential Question(s) 1. Why are individual choice and competition important in a free market economy? 2. How do economic systems affect economic decisions? 3. How does supply and demand influence economic decisions? 4. How do market economies ensure economic freedom to individuals? 5. Why would economic activity within a country vary from place to place? Essential State Standards Priority Objectives CE.E.1.1 Compare how individuals and governments utilize scarce resources (human and capital) in traditional, command, market and mixed economies. CE.E.1.2 Analyze a market economy in terms of economic characteristics, the roles they play in decision making and the importance of each role (e.g. private property, free enterprise, circular flow, competition and profit motive, and allocation of resources via the price system). Supporting Objectives CE.C&G.2.7 Analyze contemporary issues and governmental responses at the local, state, and national levels in terms of how they promote the public interest and/or general welfare (e.g. taxes, immigration, naturalization, civil rights, economic development, annexation, redistricting, zoning, national security, health care, etc.). CE.C&G.5.3 Analyze national, state, and local government agencies in terms of how they balance interests and resolve conflicts (e.g. FBI, SBI, DEA, CIA, National Guard Reserves, CE.E.1.3 Explain how supply and demand magistrate, Better Business Bureau, IRS, determine equilibrium price and quantity produced Immigration and Naturalization, FEMA, (e.g. any market examples – apples, tires, etc.). Homeland Security, ATF, etc.). CE.E.1.4 Analyze the ways in which incentives and profits influence what is produced and distributed in a market system (e.g. supply, demand, What to produce?, How to produce it?, How much to produce?, For whom to produce it?, free enterprise, etc.). CE.E.1.5 Compare how various market structures affect decisions made in a market economy (e.g. monopoly, oligopoly, monopolistic competition, pure competition, etc.). CE.E.1.6 Compare national, state and local economic activity (e.g. resources, wages, production, employment, etc.). CE.E.3.1 Summarize basic macroeconomic indicators and how they vary over the course of a business cycle (e.g. Gross Domestic Product, unemployment, Consumer Price Index, etc.). CE.E.3.2 Explain how fiscal policy and monetary policy influence overall levels of employment, interest rates, production, price level and economic growth (e.g. business cycle, standard of living, recession, depression, Consumer Price Index, etc.). CE.E.3.3 Analyze organizations in terms of their roles and functions in the United States economy (e.g. banks, labor unions, federal reserve, nonprofit organizations and cooperatives, Wall Street, etc.). COGNITION (RBT Level) “Unpacked” Concepts (students need to know) CE.E.1.1 • Individuals and Governments • Resources • Traditional, Command, Market, Mixed Economies “Unpacked” Skills (students need to be able to do) CE.E.1.1 Compare (use of resources) CE.E.1.1 Understanding CE.E.1.2 • market economy • economic characteristics of market economy - roles they play in decision making - importance of each role CE.E.1.2 Analyze (market economy) CE.E.1.2 Analyzing CE.E.1.3 • supply and demand • equilibrium price • quantity produced CE.E.1.3 Explain (determining factors) CE.E.1.4 • incentives and profits • market system • what is produced and distributed CE.E.1.5 • market structures • market economy CE.E.1.6 • national, state, local economic activity CE.E.3.1 • macroeconomic indicators • business cycle CE.E.1.4 Analyze (influence of incentives and profits) CE.E.1.3 Understanding CE.E.1.4 Analyzing CE.E.1.5 Compare (decisions) CE.E.1.5 Understanding CE.E.1.6 Compare (economic activity) CE.E.1.6 Understanding CE.E.3.1 Summarize (indicators and how they vary) CE.E.3.1 Understanding CE.E.3.2 CE.E.3.2 CE.E.3.2 • monetary policy • fiscal policy • levels of employment, interest rates, production, price level, economic growth Explain (the influence of monetary and fiscal policy) Understanding CE.E.3.3 roles and functions of organizations in United States economy CE.E.3.3 Analyze (organizations) CE.E.3.3 Analyzing Standard(s) CE.E.1.1 Compare how individuals and governments utilize scarce resources (human and capital) in traditional, command, market and mixed economies. Unit “Chunking” & Enduring Understandings Scarcity Scarcity can influences production. CE.E.1.3 Scarcity can influence the choices of individuals, businesses, and countries. Explain how supply and demand determine equilibrium price and quantity produced. Scarcity can lead to economic interdependence or conflict. CE.E.1.4 Analyze the ways in which incentives and profits influence Suggested Lesson Essential Questions Possible Factual Content (Bold Found in Standards) • Scarcity - influence on How does < production scarcity < consumption influence the < economic basic economic choices questions? • Resources - human (labor and entrepreneurship) - natural (land) How does - capital scarcity - limits of influence the - considered decisions of scarce individuals, - productive / businesses, and factors of countries? production • What to Produce? • How to Produce? • How much to Produce? How can scarcity • For whom to lead to economic produce it? interdependence • Needs and Wants or conflict? • Supply and Demand • Opportunity Cost • Economics - influence of - interdependence - problems Example(s) From Unpacked Standard Relative scarcity may lead to trade and economic interdependence or to conflict. Scarcity and the necessity of balancing scarcity and unlimited wants may influence production, consumption, and economic choices. When nations face the problem of scarcity, their citizens must often decide how to allocate scarce resources. what is produced and distributed in a market system. - freedom • Incentives - profit - job fulfillment • Choice • Markets • Expansion • Conflict • Trade • Interdependence Economic Systems Economic systems can dictate decision making. Why may a country choose one economic system over another? Nations with different economic systems may address scarcity in different ways. How do the different economic systems deal with scarcity? • Economic Systems - types of < traditional < command < market < mixed - compare systems < market = price and quantity determined by supply and demand < command = government determines how resources are used - how to place on continuum to show difference - influence on people • Economic Freedom • Scarcity • Free Enterprise Economic systems influence peoples’ incentives. In a free market economy, price and quantity are determined by the interaction of supply and demand. A method for allocating scarce resources is an economic system. An economic system is a set of rules that people must consider when making decisions. CE.E.1.2 Analyze a market economy in terms of economic characteristics, the roles they play in decision making and the importance of each role. CE.E.1.3 Explain how supply and demand determine equilibrium price and quantity produced. Market Economies The economy in a market economy is determined by supply and demand. What are the characteristics of the market economy? In a market economy, the flow of goods, services, and resources is circular. How does economic decision making in a market economy work? • • • • • • • • • • • • • • • • Market Economy Free Enterprise Price System Laissez-faire Capitalism Private Property Circular Flow Model - consumer sector - business sector - government sector - foreign sector - factor markets - product markets - revenue - expenditure - goods - services - resources Profit - as motivator < incentive Competition - as regulator - quality and price Price - system - as coordinator Allocation of Resources Investment - capital - human resources Production Circular Flow Model Invisible Hand Adam Smith In a market economy, profit acts as a motivator, competition acts as a regulator, and prices act as a coordinator. In a free market economy, price and quantity are determined by the interaction of supply and demand. CE.E.1.3 Explain how supply and demand determine equilibrium price and quantity produced. CE.E.1.5 Compare how various market structures affect decisions made in a market economy. Supply and Demand In a free market economy, price and quantity are determined by the determined by the interaction of supply and demand. How do consumers and businesses react to the forces of supply and demand? Businesses use supply and demand curves to devise business strategies. How can businesses use supply and demand curves? Competition Markets with more competition often tend to create better outcomes for consumers. Why is competition beneficial in a market economy? • Supply and Demand • Equilibrium Price and Quantity - relation to market clearing price - how to find • Scarcity • Unlimited Wants • Production • Consumption • Economic Choices • Free Market Economy • Create Demand Schedule • Create Supply Schedule • Demand and Quantity Demanded - difference • Supply and Demand Curves - how to move - causes of movement • Profit • Market Supply • Subsidy • Supply Elasticity • Surplus / Shortage • Market Structures - monopoly - oligopoly - monopolistic competition - pure competition - create a continuum showing differences - examples of • Competition - factors in level < location < government Increases or decreases in demand and/or supply will impact price and quantity. The role competition plays in regulating quality and price. regulation < uniqueness of product - role in regulating quality and price • Consumers • Markets - reasons for creation of barriers - factors leading to competitiveness CE.E.1.2 Analyze a market economy in terms of economic characteristics, the roles they play in decision making and the importance of each role. CE.E.1.5 Compare how various market structures affect decisions made in a market economy. CE.E.1.6 Compare national, state and local economic activity. CE.E.3.1 Summarize basic macroeconomi The Role of Government in Economics The government can have a limited yet important role in a market economy. Why is government necessary in a market economy? The government can use fiscal and monetary policy to manage the economy. How do the different levels of government stimulate economic activity? Organizations help individuals and businesses with their economic activities. How do banks, the federal reserve, and other organizations impact the U.S. economy? • Government - limited yet important Function < preserve competition < enforce contracts < protect life, liberty, and property - regulation < impact on competition < impact on U.S. economy - stimulates economy < tax cuts < spending Increases - control and supply money - bonds • Macroeconomics - indicators < help investors predict and react < vs. microeconomics < vary over time • Business Cycle - phases (expansion, peak, contraction, trough) • Income Government has limited yet important functions in a market economy. Location, government regulation or the uniqueness of a product are factors that may cause markets to be more or less competitive. A nation’s overall levels of income, employment, and prices are determined by the interaction of spending and production decisions. Fiscal Policy can provide stimulus during economic recession. National c indicators and how they vary over the course of a business cycle. CE.E.3.2 Explain how fiscal policy and monetary policy influence overall levels of employment, interest rates, production, price level and economic growth CE.E.3.3 Analyze organizations in terms of their roles and functions in the United States economy. • Employment • Unemployment - how calculated • Prices • Spending • Production • Inflation - definition - how measured < Consumer Price Index (CPI) - redistributes purchase power - imposes undesirable costs - why problem • Gross Domestic Product (GDP) • Fiscal Policy - can provide stimulus - all levels of government - use in contraction and expansion < controversy • Monetary Policy - can prevent inflation - national government only - use in contraction and expansion < controversy • Interest Rates • Standard of Living • Recession - definition and characteristics • Depression • Money Supply • Tax Cuts • Stimulate • Federal Reserve System (FRS) - function - affects amount banks can lend - influence interest rates governments can control the supply of money in an economy by encouraging or discouraging bank loans with the changes in discount rate and the buying or selling of government bonds. • Paper Money - not backed by gold - dependent on FRS - fiat money • Organizations - functions - banks / credit unions < why loan money < purpose < connection with entrepreneurs - labor unions - Federal Reserve - nonprofit organizations < serve public < not about profit - cooperatives - Wall Street < stock market • Financial System - connects savers and borrowers • Financial Panic CE.E.1.6 Compare national, state and local economic activity. Economic Activity in America National, state, and local economic activity can differ. Why might the economic focus of the United States, North Carolina, and Forsyth County differ? • Economic Activity - national - state - local • Resources • Wages • Production • Employment • Consumers • Producers • Free Enterprise • Completion • Private Ownership of Resources • Government Regulation • North Carolina - tobacco farming - textile industry - contemporary Economic features of North Carolina. finance and hightech research HISTORY GEOGRAPHY CIVICS & GOVERNME NT Regulation ECONOMICS CULTURE Choice Competition Markets Quality of Life General Unit Resources “Straight Ahead” “Uphill” Moscow on the Hudson Movie, coffee clip “Mountainous” Arctic Survival simulation Mocha Islands Movie Set Make powerpoint on each type of economic system, research and present countries that are each system Create a product, survey class, create supply and demand curve with equilibrium, can merge with another company created in class Entrepreneur research- How successful is the business? Are they a successful citizen? Do they give back? Create supply and demand shifts Research various economic indicators and put together to determine the state of the business cycle (expansion or contraction)—then decide what should be the monetary policy and fiscal policy Text differentiation symbols: Texts will be categorized in teacher resource documents as Straight Ahead (less challenging for struggling readers), Uphill (having some challenging words and more complex sentence structure that is appropriate for on-grade level readers), or Mountainous (containing challenging vocabulary, complex sentences, and more abstract ideas).