Download Unit 6: The Free Market and Role of Government

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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
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•
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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:
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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).