Download Economics - Lake County Schools

Pacing Guide & Curriculum Map
Economics
Revised 08/12/10
Preface
Teams of Lake County teachers created the curriculum maps in order to ensure that all students throughout the district receive a common curriculum. The maps help ensure that all state
requirements are taught and that the content is divided into teachable segments with appropriate pacing. The curriculum maps will guide your instruction but provide flexibility based on the individual
needs of students. The maps are living documents and feedback is requested of teachers to ensure continuous improvement.
All teachers are expected to use the curriculum maps, in conjunction with data, to drive instruction. The maps were designed for the instruction to take place by quarter. There is some flexibility within
the quarters for mastery and re-teaching. The expectation is that teachers will finish the content within each quarter in its entirety. The maps have been structured in such a way as to scaffold student
learning.
Listed below are a few of the new or updated features common to all curriculum maps:
Essential Question(s):
o Provide application of the skills/concepts
o Have more than one right answer which promotes student discourse
o Increase the rigor in the classroom, by changing from teacher-centered to student-centered learning
o Are referred to at the beginning, middle, and end of the lesson
o Require you to make a decision
o Promote critical thinking and problem solving
o Encourage interdependence
o Are open-ended
Academic Vocabulary are:
o Unfamiliar vocabulary that are essential to understanding new content within explicit instruction
o Not necessarily the bold words in the chapter.
o Cumulative and continuously used throughout the year.
o Integrated into word walls, a research-based strategy that will facilitate vocabulary acquisition.
Common Board Configuration Elements (specific layouts may vary by sites, but must include each of these):
Purpose: For the student to know what is being taught and what the student will learn
o Date
o Benchmark
o Measurable, student-friendly objective
o Essential Question
o Bell work
o Agenda (Specific daily schedule)
o Homework
o Exit Strategy/Card
Revised 08/12/10
2
Lessons that infuse reading, writing, and discussion are imperative components of every subject area. There should be daily:
o Teacher to student and student to student discourse utilizing academic vocabulary.
o Reading and authentic writing
o Writing that includes higher-order thinking
o Incorporation of effective reading and writing instructional strategies
Maps are organized to include the following:
o
Pacing
o
Objective
o
Essential questions, content and understanding, benchmarks, and assessment
o
Appendix/ resources
Revised 08/12/10
3
STRATEGIES FOR HONORS ECONOMICS
In an effort to boost the rigor and better prepare our high school students for Advanced Placement courses this document has been prepared as a
guide for Honors teachers.
ƒ
Instruction should be based on content / skills from the Lake County Schools Curriculum Map. The course curriculum map should serve as
the instructional guide, not a textbook or any specific resource.
ƒ Use the Essential Question for each unit as your starting point: have it posted, and review it regularly with your students to provide them with
a framework for instruction (remember, it’s like a thesis in an essay) and a purpose for learning all the unit content. The same holds true for
the Essential Content and Understandings you are focusing on each day. They should be visible and discussed before and after instruction.
ƒ Social Studies Literacy Strategies should be utilized regularly (Cornel Notes, Dialectical Notes, or similar note-taking method, SOAPStone or
APPARTS analysis tools, and PERSIA or G-SPRITE categorization tools).
ƒ Activities should include Document-Based instruction (analytical reading and writing involving individual and collections of primary and
secondary sources), methodology affecting the multiple intelligences and utilizing both individual and cooperative learning (e.g. History
Alive lessons).
ƒ Students should conduct research projects and/or papers.
ƒ Assessment should include both formative assessments “for learning” and summative assessments. Questions should include Level 1 items
that involve low order, foundational knowledge/skills; Level 2 items require students to infer or draw conclusions; and Level 3 questions
require more abstract thought, thinking beyond the information at hand.
ƒ Students should be engaged in higher order writing on a regular basis, short and extended responses, more in-depth essays, and authentic
writing. Students must be able to produce historical writing, that is, they must be able to take a position on a subject (thesis) and defend it
with examples (facts) and sound reasoning (logic).
ƒ Students should keep a Notebook as they help students organize information (previews, teacher directed activities, and process assignments),
they provide cohesion and structure to a unit of study, and they place responsibility for learning on students (e.g. an AVID or Interactive
Student Notebook).
ƒ Teachers should assign, and students should complete targeted homework - students should be expected to complete homework regularly but
homework shouldn’t be assigned simply for the sake of giving homework. Homework can include preview or process activities,
vocabulary/concept building, work related to projects, etc.
Revised 08/12/10
4
Required Instruction for Social Studies
Grade 12 - Economics
The Florida Legislature has mandated certain instructional initiatives by specific legislation. These mandates are not assigned to particular grade
levels or subject areas, but are intended for broad implementation. Compliance should be appropriate to the developmental level of students and
should fit reasonably within the frameworks of specific courses. The following list contains the required instructional mandates that apply to Social
Studies classes. Some of these requirements [such as F.S. 1003.42 (2)(d)] may be implemented in every public school classroom. Others may fit
precisely into one or more specific courses. The highlighted items are the ones most likely to be addressed, in full or in part, in Grade 12 Economics. This does not imply, however, that non-highlighted items cannot be addressed as appropriate.
The 2003 Florida Statutes, Title XLVIII, Public Education, Chapter 1003, Course of Study and Instructional Aids, 1003.42 required
instruction states:
(1) Each district school board shall provide all courses required for high school graduation and appropriate instruction designed to ensure that
students meet State Board of Education adopted standards in the following subject areas: reading and other language arts, mathematics,
science, social studies, foreign languages, health and physical education, and the arts.
(2) Members of the instructional staff of the public schools, subject to the rules of the State Board of Education and the district school board,
shall teach efficiently and faithfully, using the books and materials required, following the prescribed courses of study, and employing
approved methods of instruction, the following:
(a) The content of the Declaration of Independence and how it forms the philosophical foundation of our government.
(b) The arguments in support of adopting our republican form of government, as they are embodied in the most important of the
Federalist Papers.
(c) The essentials of the United States Constitution and how it provides the structure of our government.
(d) Flag education, including proper flag display and flag salute.
Revised 08/12/10
5
(e) The elements of civil government, including the primary functions of and interrelationships between the Federal Government, the
state, and its counties, municipalities, school districts, and special districts.
(f) The history of the Holocaust (1933-1945), the systematic, planned annihilation of European Jews and other groups by Nazi
Germany, a watershed event in the history of humanity, to be taught in a manner that leads to an investigation of human behavior, an
understanding of the ramifications of prejudice, racism, and stereotyping, and an examination of what it means to be a responsible
and respectful person, for the purposes of encouraging tolerance of diversity in a pluralistic society and for nurturing and protecting
democratic values and institutions.
(g) The history of African Americans, including the history of African peoples before the political conflicts that led to the development of
slavery, the passage to America, the enslavement experience, abolition, and the contributions of African Americans to society.
(k) The history of the state.
(o) The study of Hispanic contributions to the United States.
(p) The study of women’s contributions to the United States.
(q) A character-development program in the elementary schools, similar to Character First or Character Counts, which is secular in
nature and stresses such character qualities as attentiveness, patience, and initiative. Beginning in school year 2004-2005, the
character-development program shall be required in kindergarten through grade 12. Each district school board shall develop or
adopt a curriculum for the character-development program that shall be submitted to the department for approval. The characterdevelopment curriculum shall stress the qualities of patriotism, responsibility, citizenship, kindness, respect, honesty, self-control,
tolerance, and cooperation.
(r) In order to encourage patriotism, the sacrifices that veterans have made in serving our country and protecting democratic values
worldwide. Such instruction must occur on or before Veterans’ Day and Memorial Day. Members of the instructional staff are
encouraged to use the assistance of local veterans when practicable.
1003.421 Recitation of the Declaration of Independence.-Revised 08/12/10
6
(1) To educate students about the sacrifices made for freedom in the founding of this country and the values on which this country was
founded, the last full week of classes in September shall be recognized in public schools as Celebrate Freedom Week. Celebrate
Freedom Week must include at least 3 hours of appropriate instructions in each social studies class, as determined by each school
district, which instruction shall include an in-depth study of the intent, meaning, and importance of the Declaration of Independence.
(2) To emphasize the importance of this week, at the beginning of each school day or in homeroom, during the last full week of
September, public school principals and teachers shall conduct an oral recitation by students of the following words of the
Declaration of Independence: “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their
creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness. That to secure these rights,
governments are instituted among men, deriving their just powers from the consent of the governed.”
(3) Student recitation of this statement shall serve to reaffirm the American ideals of individual liberty.
(4) Upon written request by a student’s parent, the student must be excused from the recitation of the Declaration of Independence.
The Florida Statutes may be viewed online at http://flsenate.gov/statutes.
Revised 08/12/10
7
Social Studies Skills and Concepts Matrix
This Social Studies Skills and Concepts Matrix is designed to demonstrate to the classroom teacher the vertical alignment of essential skills
and concepts LCS students are expected to master at various stages throughout their PreK-12 education. It is constructed so that teachers can
clearly determine the introduction, development, mastery, and reinforcement stages of selected Social Studies and Language Arts skills and
concepts in order to facilitate achievement in the Social Studies. This matrix is not intended to be used as a checklist; rather, it is intended for
teachers to reference throughout the school year to ease the planning process. It will also ensure uniform acquisition of these skills and concepts
by students across the district, as each
skill/concept is included in the Social Studies Curriculum, Instruction, and Assessment Alignment.
The Social Studies Skills and Concepts Matrix encompasses four categories: Geography Skills and Concepts, Research Skills and
Concepts, Social Studies Skills and Concepts, and Civic Awareness Concepts. Specific skills and concepts are listed, as well as the introduction,
development, mastery, and reinforcement stages at each grade level. The mastery level for each skill/concept has been bolded in order to signify
its importance at the specified grade level. The Introduction Benchmark denotes the corresponding Social Studies or Language Arts
developmental-level benchmark to each skill/concept introduced.
For easy reference, the table of standards and benchmarks uses an identification system that mirrors the structure of the standards
organization.
Subject:
The two letters in the first slot identify the subject area, such as SS for Social Studies, LA for Language Arts, etc.
Grade Level: The number in the second slot identifies the grade level.
Strand:
The letter in the third slot identifies the strand, such as A for American History, W for World History, etc.
Standard:
The number in the third slot identifies the general standard under the strand
Benchmark: The number in the fifth slot is the benchmark under the grade cluster within the standard.
SS.8.A.1.1
Subject Area:
SS Social Studies
LA Language Arts
Revised 08/12/10
Grade
Level
Strand:
A=American
History
G=Geography
E=Economics
C=Civics &
Government
W=World
History
H=Humanities
Benchmark
Number
Standard
Number
8
GEOGRAPHY SKILLS AND CONCEPTS
Skills and Concepts
Globe and maps are models of Earth, countries, states, etc.
Location of home address, city, state, county, and country
Relative location (near, far, up, down, over, under)
Cardinal directions
Equator
Continents
Countries of North America (U.S., Canada, Mexico)
Four oceans
Intermediate directions (NE, NW, SE, SW)
State capital of Florida
Washington, D.C., location
Hemispheres
Map parts: title, scale, grid, legend, compass rose
Prime Meridian, International Dateline
Thematic maps (population, precipitation, vegetation, etc.)
Identify map types: physical, political
Landforms, water bodies
Name and location of 50 states
Time zones
U.S. regions
Latitude/longitude
Tropic of Cancer/Tropic of Capricorn
Global regions: climate, vegetation, economic, etc.
Map projections
I = Introduce
Revised 08/12/10
D = Develop
M = Mastery
K
1
2
3
4
5
6
7
8
9
Introduction
10 11 12 Benchmark
I
I
I
I
D
D
D
D
M
D
D
D
I
I
I
I
I
I
I
I
I
I
I
R
D
M
M
D
D
D
D
D
D
D
D
D
D
D
1
I
I
I
I
R
M
R
R
M
D
D
D
D
M
D
D
D
D
D
D
D
D
D
D
I
I
R
R
R
R
R
M
D
M
D
R
M
D
D
D
D
D
D
D
D
D
D
D
R
R
R
R
R
R
D
R
M
R
R
M
M
M
D
M
D
D
D
D
D
D
I
I
R
R
R
R
R
R
M
R
R
R
R
R
R
R
D
R
D
M
D
D
M
M
D
D
R
R
R
R
R
R
R
R
R
R
R
R
R
R
M
R
D
R
D
M
R
R
D
D
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
D
R
D
R
R
R
D
D
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
M
R
D
R
R
R
M
M
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
M
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
SS.K.G.1.2
SS.K.G.2.2
SS.K.G.1.1
SS.K.G.1.3
SS.2.G.1.3
SS.2.G.1.3
SS.2.G.1.4
SS.2.G.1.3
SS.2.G.1.1
SS.2.G.1.2
SS.2.G.1.2
SS.2.G.1.3
SS.2.G.1.1
SS.2.G.1.3
SS.2.G.1.1
SS.3.G.1.4
SS.3.G.2.4
SS.3.G.2.3
SS.2.G.1.3
SS.3.G.2.2
SS.4.G.1.4
SS.4.G.1.4
SS.6.G.6.1
SS.6.G.1.2
R = Reinforce
9
RESEARCH SKILLS AND CONCEPTS
Skills and Concepts
Provides supporting details of answer from text
Media skills – student knows how to find materials in the media
center
Identify and use dictionary, encyclopedia, almanac, atlas
Identify fact and opinion
Search engines – student can use an internet search engine to
research
Oral history – interviewing skills
Check validity of information from research/text
Identify strong vs. weak arguments
Identify and use articles, periodicals, journals
I = Introduce
D = Develop
M = Mastery
K
I
1
D
2 3
D D
4
D
5 6
D D
7
D
8
D
I
D D
I D
I
D
D
D
D D
D D
D D
D
D
D
M R
M R
M R
R
R
R
R
R
R
R
R
R
D
D
D D
D D
I D
I
D
D
D
D
I
M
D
D
D
D
R
D
M
D
D
R
D
R
D
D
R
M
R
D
M
R
R
R
M
R
9
R
D
D
D
D
D
D
D
D
10
R
R
M
M
M
M
M
D
D
11
R
R
R
R
R
R
R
M
M
I
I
9
D
10 11 12
M R R
Introduction
Benchmark
LA.K.1.7.3
LA.2.6.2.2
SS.1.A.1.2
LA.2.6.2.2
LA.3.6.3.1
LA.3.6.2.1
SS.3.A.1.2
LA.3.6.1.1
LA.5.6.2.1
LA.6.1.7.5
LA.7.2.2.4
R = Reinforce
SOCIAL STUDIES SKILLS AND CONCEPTS
Skills and Concepts
Identify, analyze and use primary/secondary sources
Create timelines – chronological order
Charts/graphs/photo analysis
Cause/effect
Compare and contrast
Point of view
Create timelines using a scale
Analyze current events
Political cartoons
I = Introduce
Revised 08/12/10
D = Develop
M = Mastery
K
I
I
1
D
D
I
I
2
D
D
D
D
I
I
3
D
D
D
D
D
D
4
D
D
D
D
D
D
5
D
D
D
D
D
D
6
D
D
D
D
D
D
I
7
D
D
D
D
D
D
D
8
M
M
D
D
D
D
D
I
I
12
R
R
R
R
R
R
R
R
R
Introduction
Benchmark
SS.K.A.1.2
SS.K.A.1.1
LA.1.2.2.1
LA.1.1.7.5
LA.2.1.7.7
LA.2.3.3.1
SS.6.W.1.1
SS.8.A.1.3
SS.8.A.1.2
R = Reinforce
10
CIVIC AWARENESS CONCEPTS
Skills and Concepts
Concept of voting
Declaration of Independence (STATE STATUTE)
Identify Abraham Lincoln
Identify George Washington as first President of the U.S.A.
Martin Luther King was an influential leader of the Civil Rights
Movement of the 20th century
Patriotic holidays that represent America
Patriotic symbols that represent America
U.S.A. is a nation of immigrants
Citizens have the right and responsibility to participate in the
government
Our government is headed by the President
Our state is headed by the Governor
Global/American concept of servitude
Government officials are elected by the people
America won independence from England in the American
Revolution
I = Introduce
Revised 08/12/10
D = Develop
K
I
I
I
I
1
D
D
D
D
2
D
D
D
D
3
D
D
D
M
4
D
D
D
R
5
M
D
D
R
6
R
D
D
R
7
R
D
D
R
8
R
M
M
R
9
R
R
R
R
10
R
R
R
R
11
R
R
R
R
12
R
R
R
R
Introduction
Benchmark
SS.K.C.2.3
SS.K.A.2.2
SS.K.A.2.4
SS.K.A.2.4
I
I
I
I
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
M
D
D
D
R
D
D
D
R
D
D
D
R
D
D
D
R
D
D
D
R
M
M
M
R
R
R
R
R
SS.K.A.2.4
SS.K.A.2.2
SS.K.A.2.5
SS.K.A.2.3
I
D
I
I
I
D
D
D
D
I
D
D
D
D
D
D
M
D
D
D
D
R
D
D
D
D
R
D
D
D
D
R
M
M
M
D
R
R
R
R
D
R
R
R
R
M
R
R
R
R
R
R
R
R
R
SS.1.C.2.1
SS.3.C.3.1
SS.3.C.3.1
SS.2.C.2.4
SS.3.C.1.2
I
D D
M R
R
R
R
SS.5.A.5.3
M = Mastery
R = Reinforce
11
Next Generation Sunshine State Standards for Social Studies and Health
Related to Character Education
The writers of the Next Generation Sunshine State Standards for Social Studies and Health Education have worked to incorporate required
instruction related to Character Education into the standards. The intent was to include character education as a learning progression that
increases with rigor and depth of understanding over time. These standards will be part of the required instruction for grades K – 8. For high
school courses, these character education standards will be included as part of required Social Studies courses in the Florida Course
Descriptions. Here is a listing of where the required Character Education has been included in the Social Studies and Health Education standards:
Patriotism:
-Evaluate, take, and defend positions on the founding ideals and principles in American Constitutional government. -- SS.912.C.1.1
-Identify the expansion of civil rights and liberties by examining primary documents (e.g., Preamble, Declaration of Independence, Constitution,
Emancipation Proclamation, 13th, 14th, 15th, 19th, 24th, and 26th Amendments, Voting Rights Act of 1965). -- SS.912.C.2.9
Citizenship:
-Evaluate the importance of political participation and civic participation. -- SS.912.C.2.2
-Experience the responsibilities of citizens at the local, state, or federal levels (e.g., registering or pre-registering to vote, volunteering,
communicating with government officials, informing others about current issues, participating in a political campaign/mock election). -SS.912.C.2.3 3
-Evaluate, take, and defend positions about rights protected by the Constitution and Bill of Rights. -- SS.912.C.2.6
Charity:
-Conduct a service project to further the public good (e.g., school, community, state, national, international). -- SS.912.C.2.
Racial, Ethnic, and Religious Tolerance:
-Describe various socio-cultural aspects American life including arts, artifacts, literature, education, and publications. -- SS.912.A.1.7
-Analyze the impact of the Holocaust during World War II on Jews as well as other groups. -- SS.912.A.6.3
-Examine efforts to expand or contract rights for various populations during World War II (e.g., women, African Americans, German Americans,
Japanese Americans, Native Americans, Hispanic Americans, Italian Americans). -- SS.912.A.6.4
-Assess human rights policies of the United States and other countries. -- SS.912.C.4.3
Cooperation:
-Use a decision-making model to analyze a public policy issue affecting the student's community that incorporates defining a problem, analyzes
the potential consequences, and considers the alternatives. -- SS.912.E.2.2
Revised 08/12/10
12
12th Grade Economics Pacing Guide
First 4.5-weeks
Second 4.5-weeks
Introduction to Economics
Macroeconomic Concepts
Fundamental Economic Concepts- 1 week
• The Economic Problem: Scarcity & Choice
• Factors of Production and Productivity
• Trade-offs and Opportunity Costs
• Economic Decision Making
• Use of Resources
• Economic Systems
• The American Economy
The Nation’s Economy- 3 weeks
• Measuring the Economy’ Performance
• Inflation and Deflation
• Aggregate Supply and Demand
• Business Cycle
• Money: Functions and Characteristics
• Federal Reserve System
• U.S. Government’s Role
• Federal Budget and National Debt
• Taxation
• Stabilizing the Economy: Monetary and Fiscal Policy
• Unemployment
Practical Economics
Personal finance- 1 week
• Income
• Earning Power
• Advertising
• Cost of Credit
• Loan Process
• Saving and Investing
• Diversification
Microeconomic Concepts:
International Economic Concepts- 1 week
• Import v. Export
• Absolute and Comparative Advantage
• Developed and Developing Nations
• Process and Obstacles of Economic Development
Review for Final exam- .5 week
Markets, Prices, and Business Competition- 2 weeks
• Markets and Price/ Supply and Demand
• Business Organizations
• Competition
• Market Structures
• Government’s Affect on Competition
Review for Mid-term exam- .5 week
Revised 08/12/10
13
Objective(s) of Learning
Introduction to Economics
The student will demonstrate knowledge of fundamental economic concepts by
a) identifying the basic economic questions encountered by all economic systems.
Essential Questions
Explain how a
production possibility
curve could be used in
your daily life?
Revised 08/12/10
Essential Content & Understandings
The Basic Economic Problem: Scarcity and Choice
• The basic problem of economics is that
everything that exists is limited. The fact that
people do not have enough time, money, or
other resources to meet to their every desire
leads to scarcity.
• Economics focuses on how individuals and
societies use limited resources to fulfill their
unlimited wants.
• Businesses and governments use production
possibility curves in part to show the maximum
combination of goods and services that can be
produced from a fixed amount of resources.
Essential Benchmarks
Assessments
SS.912.E.1.2 Analyze production
possibilities curves to explain choice,
scarcity , and opportunity costs.
14
Objective(s) of Learning
Introduction to Economics
The student will demonstrate knowledge of fundamental economic concepts by
b) identifying the factors of productions and why they are necessary for the production of goods and services.
Essential Questions
Essential Content & Understandings
Essential Benchmarks
Which factor of
production is the most
important to a society?
Explain.
Factors of Production and Productivity
• The production of goods and services depends
on four basic categories of resources which are
interdependent in the production; land, labor,
capital, and entrepreneurship. A fifth, and
controversial factor, is technology.
SS.912.E.1.1 Identify the factors of
production and why they are necessary for
the production of goods and services.
Assessments
SS.912.E.2.5 Analyze how capital
investments may impact productivity and
economic growth.
Factors of production
•
Labor, also called human resources, is
any form of human effort used in the production
of goods and services.
•
Capital is previously manufactured
goods used to make other goods and services.
Capital increases productivity which is the
amount of outputs that results from a given level
of inputs.
•
Natural resources are those items
provided by nature that are used in the
production of goods and services.
•
An entrepreneur is the risk-taker who
organizes the other resources for production.
•
Technology includes any use of land,
labor, and capital that produces goods and
services more efficiently. This is deemed as
controversial because it is simply an alteration
of the original four factors of production.
Revised 08/12/10
15
Objective(s) of Learning
Introduction to Economics
The student will demonstrate knowledge of fundamental economic concepts by
c) analyzing production possibilities curves to explain choice, scarcity and opportunity costs.
Essential Questions
Essential Content & Understandings
What trade-offs have
occurred already in your
life today?
Trade-offs and Opportunity Costs
• Due to scarcity people are forced to make choices
about how to best use their resources. When
someone chooses to buy a TV as opposed to
treadmill they are making a trade-off. This is the
sacrificing of one good, service, or activity for
another. Trade-offs happen on a daily basis in the
lives of every individual.
• Every trade-off comes at a price; what is given up
in order to get or do something else. This is called
the opportunity cost or the value of the next best
alternative given up for the alternative that was
chosen.
• Understanding trade-offs and opportunity costs is
vital in determining the best use of scarce
resources.
• Businesses and governments use production
possibility curves to in part to show the trade-offs
and opportunity costs of decisions.
Essential Benchmarks
Assessments
SS.912.E.1.2 Analyze production
possibilities curves to explain choice,
scarcity , and opportunity costs.
Revised 08/12/10
16
Objective(s) of Learning
Introduction to Economics
The student will demonstrate knowledge of fundamental economic concepts by
d) discussing the impact of effective decision making on the economy.
Essential Questions
Essential Content & Understandings
Essential Benchmarks
Give examples of when
you had to think
economically when
making a decision?
Explain your thought
process. Was the
outcome positive or
negative?
Economic Decision Making
• Effective decision making
requires comparing the
additional costs of alternatives
with the additional benefits.
Most choices involve doing a
little more or a little less of
something; few choices are allor-nothing decisions. Once we
learn how to properly analyze
the best use of our resources we
will be able to use our scarce
resources more efficiently.
SS.912.E.1.2 Analyze production possibilities curves to
explain choice, scarcity, and opportunity costs
Give examples of a time
when you used your
resources the most
efficiently?
Assessments
Give an example of a
time when you used your
resoucres the least
efficiently? How could
you have used your
resources more wisely?
Revised 08/12/10
17
Objective(s) of Learning
Introduction to Economics
The student will demonstrate knowledge of fundamental economic concepts by
e) debating the proper use of resources.
Essential Questions
Essential Content & Understandings
Essential Benchmarks
Which economic
question is the most vital
to determining how to
best use resources?
Expalin. Which
economic question is the
least vital?
Use of Resources
• Every society must answer three
basic economic questions in
order to determine how to use
resources to satisfy people’s
wants and needs. How a society
answers these questions
determines the type of economy
it has.
SS.912.E.1.2 Analyze production possibilities curves to
explain choice, scarcity, and opportunity costs
Assessments
SS.912.E.1.3 Compare how the various economic
systems (traditional, market, command, mixed) answer
the questions: (1) What to produce?; (2) How to
produce?; and (3) For whom to produce?
Basic economic questions
• What goods and services should
be produced?
• How should they be produced?
• For whom should they be
produced?
Revised 08/12/10
18
Objective(s) of Learning
Introduction to Economics
The student will demonstrate knowledge of fundamental economic concepts by
f) comparing how various economic systems (traditional, market, command, mixed) answer the questions: (1) What to produce? (2) How to produce?; and (3) For
whom to produce?
Essential Questions
Is the command
economy the best type
of economic system?
Essential Content & Understandings
Essential Benchmarks
Different Economic Systems
• The type of economy a country has is
determined by the amount of government
involvement in economic decision making as
well as how each system answers the
• There are three main theoretical types of
economies; free market, command, and
traditional. No “pure” system truly exists – all
economies are mixed to some degree.
SS.912.E.1.3 Compare how various
economic systems (traditional,
market, command, mixed) answer the
questions: (1) What to produce? (2)
How to produce?; and (3) For whom
to produce?
Assessments
Traditional economy
• A system that answers the three basic economic
questions according to traditions and customs.
Things are done the way they have always been
done.
Market economy
• A free market economy is characterized by
private ownership of property/resources, profit,
competition, consumer sovereignty, and
individual choice. Is sometimes called
“capitalism.” This is the opposite of command
systems. There is a voluntary exchange of
products between buyers and sellers – guides to
economic choices instead of tradition or
government control. The people decide how to
answer the three basic economic questions.
• Adam Smith was one of the founders of freemarket capitalixm.
Command economy
• A command economy is characterized by
central ownership of property/resources,
centrally- planned economy, and lack of
consumer choice. The government answers the
three basic questions.
Revised 08/12/10
19
•
Karl Marx provided the ideological foundation
for communist/centrally-planned economies.
Mixed economy
• Combines the basic elements of a pure market
economy and a command economy. Typically,
individuals make most of the economic
decisions and own most of the property while
government intervenes and regulates when
deemed prudent. Most economies today are
mixed economies.
• To better understand how households, firms,
and the government interact one must look at
the circular flow of economic activity:
o
Households, owners of the
factors of productions, sell those
resources to firms.
o
Firms use the resources to
produce goods and services that
households want.
o
Households use the money
from the sale of resources to purchase
goods and services.
o
Firms use the money from the
sale of goods and services to buy more
productive resources.
o
Government taxation policies
and regulations may speed up/slow
down the flow of resources, goods and
services, and money in a market
economy.
Revised 08/12/10
20
Objective(s) of Learning
Introduction to Economics
The student will demonstrate knowledge of fundamental economic concepts by
g) understanding the characteristics of the American economy and the government’s role in that economy.
Essential Questions
Essential Content & Understandings
Essential Benchmarks
Which economic goal is
the most/least important?
Major Goals of the U.S. Economy
• The Constitution outlines the values of the
United States. In order to ensure that our
economy is in line with these ideals the
American government has set six broad
economic goals. There are trade-offs among
goals, however, due to the scarcity of
resources. The value of any given goal is
dictated by the needs and desires of the nation
at that time. The goals are:
• Economic Freedom – Each member of society
must be able to make their own choices
• Economic Efficiency – Limited resources
should be used wisely
• Economic Equity – The economic system
should be fair and just
• Economic Security –There should be
economic protection against risks beyond our
control
• Economic Stability – The standard of living
should be free of any extreme ups and downs
• Economic Growth – The economy should
constantly expand to meet the growing needs
of the populace.
• The standard of living is the material wellbeing of an individual, group, or nation. It is
measured by the average value of goods and
services used by the average citizen during a
given period of time.
SS.912.E.1.10 Explain the use of fiscal
policy (taxation, spending) to promote
price stability, full employment, and
economic growth.
Revised 08/12/10
Assessments
SS.912.E.2.1 Identify and explain broad
economic gosls.
SS.912.E.2.4 Diagram and explain the
problems that occur when government
institutes wage and price controls and
explain the rational for these controls.
21
Objective(s) of Learning
Introduction to Economics
The student will demonstrate knowledge of fundamental economic concepts by
h) draw conclusions about historical economic thought of Adam Smith.
Essential Questions
Essential Content & Understandings
Essential Benchmarks
Besides captialism and
market stystem, what are
some names that could
be given to Smith’s
version of the ideal
economic system.
Adam Smith
• Wrote The Wealth of Nations in which he
argued for an economic system in which a
government stayed out of economy as much
as possible. He believed that if individuals
were left on their own they would work for
their own self-interest. In doing so, they
would be guided as if by an “invisible hand”
to use resources efficently and thus achieve
the maximum good for society. The
“invisible hand” refers to the role of the
market. Capitalism is the name given to
Smith’s version of the ideal economic
system. It is another name for the market
system.
SS.912.E.2.3 Research
contributions of entreprenuers,
inventors, and other key
individuals from various gender,
social, and ethnic backgrounds in
the development of the United
States
Revised 08/12/10
Assessments
SS.912.E.3.6 Differentiate and
draw conclusions about historical
economic thought theorized by
economists.
22
Objective(s) of Learning
Practical Economics
The student will demonstrate knowledge of the world of personal finance by
a) differentiating between types of income.
Essential Questions
Essential Content & Understandings
Explain why disposable
income is more
signifcant to an
individual’s standard of
living than both gross
and discretionary
income.
Income: Gross v. Disposable v. Discretionary
• A person’s role as a consumer depends on his
ability to consume. This ability to consume, in
turn, depends on how available income is
used. The amount of earning power that an
indivdual has depends on that person’s
education, occupation, experience, and health
among others. The three main types of income
are:
o Gross – All income before taxes and
deductions have been taken into
account
o Disposable – Income remaining to be
spent after all taxes have been paid.
This income is used to purchase the
neccesities of life: food, clothing,
and housing.
o Discretionary – Income a person has
left to spend on extras after the
necessitities have been purchased.
Revised 08/12/10
Essential Benchmarks
Assessments
SS.912.E.1.9 Describe how earnings of
workers are determined.
SS.912.E.1.16 Construct a one-year budget
for a specific career path including expenses
and construction of a credit plan for
purchasing a major item.
23
Objective(s) of Learning
Practical Economics
The student will demonstrate knowledge of the world of personal finance by
b) describe how earning power is determined and how it can change over one’s life.
Essential Questions
What characteristic has the
greatest affect on an individual’s
earning power. Explain which has
the least affect?
Revised 08/12/10
Essential Content & Understandings
Earning Power
• The ability to make money. Each individual’s
earning power is unique and depends on such
things as education, occupation, experience,
health, residence, personality, work ethic etc.
Earning power can move up and down
throughout an individuals life.
Essential Benchmarks
Assessments
SS.912.E.1.9 Describe how the
earnings of workers are
determined.
SS.912.E.1.16 Construct a oneyear budget for a specific career
path including expenses and
construction of a credit plan for
purchasing a major item.
24
Objective(s) of Learning
Practical Economics
The student will demonstrate knowledge of the world of personal finance by
c) identifying the affects of advertising on personal buying decisions.
Essential Questions
Essential Content & Understandings
What role does advertising play in
your purchase decisions?
Advertising’s Affect on Personal Decisions
• The goal of advertising is to win your
consumer dollars. Billions of dollars
are spent every year to influence
consumers. In order to make the best
possible decision when choosing
between similar products one must
understand the different types of
advertising and how they are used.
o Competitive – Attempts to
persuade consumers that one
product is different and
superior to any other.
o Informative – Gives specific
information about a product
o Deceptive – False
representations of a product’s
quality, features, or true price.
An example of this is Bait and
Switch advertising in which
consumers are lured into a
store with a low priced item
and then presurred to purchase
a higher-priced item.
• By understanding the different types of
advertising and comparison shopping
conumers are better prepared to make
good purchases.
Revised 08/12/10
Essential Benchmarks
Assessments
SS.912.E.1.8 Explain ways firms
engage in price and nonprice
competition.
SS.912.E.1.16 Construct a one-year
budget for a specific career path
including expenses and construction
of a credit plan for purchasing a
major item.
25
Objective(s) of Learning
Practical Economics
The student will demonstrate knowledge of the world of personal finance by
d) identifying the advantages and disadvantages of buying on credit.
Essential Questions
Are credit cards an asset or
liability to your life?
Revised 08/12/10
Essential Content & Understandings
Essential Benchmarks
Cost of Credit
• Credit is the receiving of funds either directly or
indirectly tobuy goods/services today with the
promise to pay for them in the future. The
amount owed – the debt – is equal to the
principal (amount originally borrowed) plus
interest (amount that must be paid for the use of
someone else’s money). Anytime that you
receive creadit or a loan, you are borrowing
funds and going into debt.
• Installment debt is one of the most common
types of debt in which the borrower repays a
loan with equal payments over a specific period
of time. A mortgage is a very common type of
installment debt.
• Deciding to use credit is a personal in which one
must compare the benefits with the costs of what
must be paid in interest and/or lost opportunities
to buy other items.
• When determining the cost of credit consumers
should consider both ther finance charge (cost of
credit expressed montly in dollars and cents) as
well as the annual percentage rate, APR, ( cost
of credit expressed as a yearly percentage)
• Two types of loans are secured (loans backed by
collateral) and unsecured (loan guaranteed only
by a promise to repay it).
• Failure to repay your debt will lead to long-term
damage to your credit score and your ability to
receive future loans and somes jobs. A
bankruptcy will stay on your credit report for ten
years. The opposite is true if you pay you debt
back as agreed.
SS.912.E.1.14 Compare credit,
savings, and investment services
available to the consumer from
financial institutions.
Assessments
SS.912.E.1.16 Construct a oneyear budget for a specific career
path including expenses and
construction of a credit plan for
purchasing a major item.
26
Objective(s) of Learning
Practical Economics
The student will demonstrate knowledge of the world of personal finance by
e) understanding how the loan process works and how it effects one’s credit rating.
Essential Questions
Essential Content & Understandings
Essential Benchmarks
What is the best way to
earn a good credit score?
Loan Process
• Loans are given based on a person’s
creditworthiness. This is determined
when you apply for credit. Your
application goes from the lending
agency to the credit bureau where your
credit score is checked.
• Your credit rating is based on such
things as your payment history, amount
of new credit, length of credit history,
debt level, and number of different
types of credit.. The higher the credit
score the higher the loan you will be
able to receive at the lowest possible
interest rate.
SS.912.E.1.14 Compare credit, savings, and
investment services available to the
consumer from financial institutions.
Revised 08/12/10
Assessments
SS.912.E.1.16 Construct a one-year budget
for a specific career path including expenses
and construction of a credit plan for
purchasing a major item.
27
Objective(s) of Learning
Practical Economics
The student will demonstrate knowledge of the world of personal finance by
f) comparing saving and investing options.
Essential Questions
Essential Content & Understandings
Explain how saving can be both a
positive and a negative to the
economy.
Saving and Investing: Options and Goals
• Saving and investing benefits not just
the individual but the economy as a
whole. It provides money for others
to invest or spend. It allows
beusinesses to expand, which
provides increased income for
consumers and raises the standard of
living.
• Deciding which option to choose will
depend a lot on your goals.
o Savings accounts
o Timed Deposits or CDs
o Stocks
o Bonds
o Mutual Funds
o Pension Plans
o Real Estate
• Amount invested depends on your
risk level, personal convictions,
goals, and amount able.
• Capital Gain (make money on
investments); Capital Loss (lose
money on investments)
• In order to protect investors and
ensure a strong economy the SEC
regulates brokerage firms, stock
exchanges, and most businesses that
issue stock as well as investingates
the dealings of coporations that affect
the value of stocks.
Revised 08/12/10
Essential Benchmarks
Assessments
SS.912.E.1.14 Compare credit,
savings, and investment services
available to the consumer from
financial institutions.
SS.912.E.1.16 Construct a one-year
budget for a specific career path
including expenses and construction
of a credit plan for purchasing a
major item.
28
Objective(s) of Learning
Practical Economics
The student will demonstrate knowledge of the world of personal finance by
f) understanding the benefits of diversification.
Essential Questions
Essential Content & Understandings
Explain how diversification could
hurt your investments.
Diversification
• Investing your savings in several
different types of accounts lowers
the overall risk. If one investment
turns sour, the others may do
better.
Revised 08/12/10
Essential Benchmarks
Assessments
SS.912.E.1.15 Describe the risk and
return profiles of various investment
vehicles and the importance of
diversification.
SS.912.E.1.16 Construct a one-year
budget for a specific career path
including expenses and construction of a
credit plan for purchasing a major item.
29
Objective(s) of Learning
Microeconomics
The student will demonstrate knowledge of microeconomics by
a) explaining the interaction of supply and demand.
Essential Questions
Essential Content & Understandings
Essential Benchmarks
Who has the most power
in the market place: the
buyer, seller, or
government?
Markets and Price / Supply and Demand
• A market represents the freely
chosen actions between buyers
and seller of goods and services.
It can be local, national,
internation, or any combination.
The basis of activity in a market
economy is the principle of
voluntary exchange. Buyer and
seller freely work toward
satisfactory terms of exchange.
These actions are the basis of
supply and demand (see chart
below).
SS.912.E.1.4 Define supply, demand, quantity
supplied, and quantity demanded and
graphically illustrate situations that would
cause changes in each and demonstrate how the
equilibrium price of a product is determined by
the interaction of supply and demand I the
market place.
Assessments
SS.912.E.1.7 Graph and explain how firms
determine price and output through marginal
cost analysis
SS.912.E.2.4 Diagram and explain the
problems that occur when government
institutes wage and price controls, and explain
the rationale for these controls
Essential Content & Understandings
Demand
Supply
Revised 08/12/10
Definition
Willingness and ability to buy
various quantities of a good or
service at various prices
Laws
Law of Demand—Quantity
demanded varies inversely to
price: If all else remains equal,
the lower the price, the higher
the quantity demanded, and the
higher the price, the lower the
quantity demanded.
Determinants
Factors other than price
influencing demand:
Willingness and ability to
provide various quantities of a
good or service at various
prices
Law of Supply—Quantity
supplied varies directly with
price: If all else remains equal,
the lower the price, the lower
the quantity supplied, and the
higher the price, the higher the
quantity supplied.
Factors other than price
influencing supply:
substitutes, complements,
number of demanders,
consumer preference, income
number of producers,
technology, government
policies, productivity of
resources
Equilibrium
Equilibrium is the point where
supply and demand balance
each other; below this point is
a shortage, and above this
point is a surplus.
Equilibrium is the point where
supply and demand balance
each other; below this point is
a shortage, and above this
point is a surplus.
30
Objective(s) of Learning
Microeconomics
The student will demonstrate knowledge of microeconomics by
b) comparing different forms of business organization.
Essential Questions
Essential Content & Understandings
Explain which way you
would organize your
business if you were
starting your own pizza
restaurant.
Business Organizations
• There are three basic ways that
businesses organize to earn
profits
• Proprietorship—A form
of business organization
with one owner who
takes all the risks and all
the profits.
• Partnership—A form of
business organization
with two or more owners
who share the risks and
the profits.
• Corporation—A form of
business organization
that is authorized by law
to act as a legal person
regardless of the number
of owners. Owners share
in the profit and limit
their liability to the
amount of their
investment.
Revised 08/12/10
Essential Benchmarks
Assessments
SS.912.E.1.5 Compare different forms of
business organization(sole proprietorship,
partnership, corporation, limited liability
corporation).
31
Objective(s) of Learning
Microeconomics
The student will demonstrate knowledge of microeconomics by
c) understanding the characteristics of competition.
Essential Questions
Essential Content & Understandings
Which condition of
perfect competition the
most desirable in an
economy?
Competition: Perfect v. Imperfect
• Perfect Competition – Market
situation in which there are
numerous buyers and sellers,
and no single buyer or seller can
affect price. The is the desired
market structure in a free market
economy. Five conditions must
be met: large market, similar
products, easy market entry and
exit, easily obtainable
information, independence.
• Imperfect Competition – Most
industries fall in this category.
Three types: monopolistic
competition, oligopoly, and
monopoly. They differ based on
how much competition and
control over price the seller has.
• Federal regulatory agencies
oversee the various market
structures to prevent/break-up
monopolies and ensure a strong
and smooth econony.
Revised 08/12/10
Essential Benchmarks
Assessments
SS.912.E.1.8 Explain ways firms engage in
price and nonprice competition.
32
Objective(s) of Learning
Microeconomics
The student will demonstrate knowledge of microeconomics by
d) comparing the basis characteristics of the four market structures.
Essential Questions
Why is the level of
existing competition a
good way to organize
markets?
Revised 08/12/10
Essential Content & Understandings
Essential Benchmarks
Market Structures
• As well as by the amount of
owners a business has they are
also categorized by market
sturcture, or by the amount of
competition they face. There are
four basic market structures in
the U.S.:
o Pure competition –
Numerous
buysers/sellers and no
single buyer/seller can
affect price
o Monopoloistic
competition – Large
number of sellers offer
similar but slightly
different products and
in which each has some
control over price.
o Oligopoly - Industry
dominated by a few
suppliers who exercise
some control over
price. Cartels typically
arise in oligopolies.
o Monopoly – A single
supplier makes up an
entire industry for a
good/service with no
close substitutes.
SS.912.E.1.6 Compare the basic characteristics
of the four market structures (monopoly,
oligopoly, monopolistic competition, pure
competition).
Assessments
SS.912.E.2.6 Examine the benefits of natural
monopolies and the purposes of government
regulation of these monopolies.
33
Objective(s) of Learning
Microeconomics
The student will demonstrate knowledge of microeconomics by
e) describing the government’s affect on competition.
Essential Questions
Essential Content & Understandings
Cite positive and
negative examples of
federal regulation in the
economy.
Government’s Affect on Competition
• One of the goals of the U.S.
eocnomy is to encourage
competition. It does this through
regulation/deregulation.
• Antiturst legislation such as the
Sherman Antitrust Act and the
Clayton Act help to prevent and
breakup monopolies
• Regulatory agencies oversee
various industries and services
and monitor/regulate pricing and
product quality
• Regulation can actually decrease
the amount of competition in an
economy. In that case the
government will deregulate. This
hopefully leads to more
competition. Too much
deregulation, however, can lead
to very risky business practices
which can have a very large
negative affect on the economy.
Revised 08/12/10
Essential Benchmarks
Assessments
SS.912.E.2.6 Examine the benefits of natural
monopolies and the purposes of government
regulation of these monopolies.
34
Objective(s) of Learning
Macroeconomics
The student will demonstrate knowledge of macroeconomics by
a) identifying performance measures for economies.
Essential Questions
Essential Content & Understandings
Why is it important to
measure the economy?
Measuring the Economy’s Performance
• To determine how healthy the
U.S. economy is economists
constantly measure various
factors. This measurement is
called national income
accounting and deals with the
overall economy’s output and
income. There are five key
statistics:
• Gross Domestic Product (GDP)
– Used most – Total dollar value
of all final goods/services
produced in a nation during a
single year
• Net Domestic Product (NDP) –
GDP minus total value of
depreciation on equipment
• National Income (NI) – Toal
income earned by everyone in
the economy
• Personal Income (PI) - Total
income received by individuals
prior to personal taxes being
paid.
• Disposable Personal Income
(DPI) – Used least – Income
remaining for people to
spend/save after all taxes have
been paid.
• All statistics are estimates as the
government doesn’t have the
resources available to determine
true values.
Revised 08/12/10
Essential Benchmarks
Assessments
SS.912.E.3.5 Compare the current United States
economy with other developed and developing nations
35
Objective(s) of Learning
Macroeconomics
The student will demonstrate knowledge of macroeconomics by
b) identifying the impact of inflation and deflation on an economy.
Essential Questions
Which is worse on the
economy: inflation or
deflation?
Revised 08/12/10
Essential Content & Understandings
Inflation v. Deflation
• Inflation is the prolonged rise in the general price
level of goods/services. It can pose a threat to the
economy by weakening consumer’s purchasing
power. This leads to less national consumer
demand but can increase the level of international
demand for U.S. goods due to foreign currency
being more valuable against the dollar. Inflation is
commonly measured by:
• Consumer Price Index (CPI) – Measures price
change over time in specific group of
goods/services used by the average household
• Producer Price Index (PPI) – Measures price
change over time that U.S. producers charge
• GDP Price Deflator – removes effect of inflation
from GDP so that the overall economy in one year
can be compared to another. This shows real GDP.
• Deflation is the prolonged decline in the general
price level of goods/services. This rarely happens.
It increases purchasing power. This is good in that
it can lead to increased national demand for U.S.
goods but too much can be bad in that businesses
aren’t making enough profit and international
demand decreases.
Essential Benchmarks
Assessments
SS.912.E.2.7 Identify the impact of
inflation on society.
SS.912.E.3.1 Demonstrate the impact
of inflation on world economies.
36
Objective(s) of Learning
Macroeconomics
The student will demonstrate knowledge of macroeconomics by
c) defining aggregate supply and demand.
Essential Questions
Essential Content & Understandings
Essential Benchmarks
Who has the most
power in the national
market place: the
buyer, seller, or
government?
Aggregate Supply and Demand
• Aggregate demand and aggregate supply relate
the total quanity of all goods/services in the
entire economy to the price level.
• Follows the same laws as in microeconomics. It
is simply on a much large scale. Equilibrium
exists where the AD curve intersects the AS
curve, thus resulting in neither inflation or
deflation.
SS.912.E.1.4 Define supply, demand,
quantity supplied, and quantity
demanded and graphically illustrate
situations that would cause changes in
each and demonstrate how the
equilibrium price of a product is
determined by the interaction of supply
and demand I the market place.
Revised 08/12/10
Assessments
37
Objective(s) of Learning
Macroeconomics
The student will demonstrate knowledge of macroeconomics by
d) describing the four phases of the business cycle.
Essential Questions
Essential Content & Understandings
Essential Benchmarks
Which point in the
business cycle should an
economy attempt to
stay?
Business Cycle: Causes and Indicators of
Fluctuations
• The economy experiences
business fluctuations.
• A business cycle begins with a
peak or boom, then continues
with a contraction toward a
recession (and perhaps even a
depression). The downward
spiral hits a trough, then
increases again in an expansion
or recovery.
• The Great Depression was the
worst economic crisis in U.S.
history
• Economists link business
flucturations to four main forces:
business investment,
government activity, external
facts such as wars, and
psychological factors.
• To help business and
government leaders in making
economic decisions for the
future, economists create and
update econmic indicators that
meaure variables in the
economy. There are three main
types of indicators: leading,
coincident, and lagging.
SS.912.E.1.12 Examine the four phases of the business
cycle (peak, contraction-unemployment, trough,
expansion-inflation).
Revised 08/12/10
Assessments
38
Objective(s) of Learning
Macroeconomics
The student will demonstrate knowledge of macroeconomics by
d) explaining the basic functions and characteristics of money and describe the composition of the money supply in the United States.
Essential Questions
Essential Content & Understandings
Essential Benchmarks
Explain how life would
be easier if we all used
commodity money.
Money: Functions and Characteristics
• Money is anything customarily used as a
medium of exchange, unit of accounting, and
a store of value.
• Anything serving as money must be durable,
portable, divisible, stable in value, scarce,
and accepted as a medium of exchange in
payment for debts.
• The three main types of money are:
o Commodity money – has an
alternative use as a commdity –
cattle, gems, etc
o Representative money – money
backed by – or can be exchanged
for – gold or silver
o Fiat money/legal tender – money
that has valued because a
government order established it as
acceptable payment of debts and
therfore must be accepted for all
public and private debts
SS.912.E.1.13 Explain the basic functions
and characteristics of money and describe
the composition of the money supply in the
United States.
Revised 08/12/10
Assessments
39
Objective(s) of Learning
Macroeconomics
The student will demonstrate knowledge of macroeconomics by
e) explaining how the federal reserve uses the tools of monetary policy (discount rate, reserve requirement, open market operations) to promote price stability, full
employment, and economic growth.
Essential Questions
Essential Content & Understandings
Essential Benchmarks
What is the most
important function of
the Federal Reserve
System?
Federal Reserve System
• Created in 1913 and is the
central banking organization in
the U.S.
• Some functions are check
clearing, acting as federal
government’s fiscal agent,
supervising member banks,
holding reserves, supplying
paper currency, and, its most
important, carring out monetary
policy.
• The banking system is basedon
fractional reserve banking
• Regulates the money supply
through changing reserve
requirements, changing the
discount and federal funds rate
as well as using open-market
operations
SS.912.E.1.11 Explain how the federal reserve uses the
tools of monetary policy (discount rate, reserve
requirement, open market operations) to promote price
stability, full employment, and economic growth.
Revised 08/12/10
Assessments
SS.912.E.2.10 Describe the organization and functions
of the federal Reserve System
40
Objective(s) of Learning
Macroeconomics
The student will demonstrate knowledge of macroeconomics by
f) analyzing the U.S. government’s role in the nation’s economy.
Essential Questions
Is ensuring economic
stability the most
important economic
function of the U.S.
government.
Essential Content & Understandings
Essential Benchmarks
U.S. Government’s Economic Role
• The government is activive in
almost every aspect of theU.S.
economy. Employing over 20
million civilian workers its four
major functions are providing
public goods, redistributing
income, regulating economic
activity and ensuring economic
stability.
SS.912.E.1.10 Explain the use of fiscal policy (taxation,
spending) to promote price stability, full employment,
and economic growth
Assessments
SS.912.E.2.2 Use a decision-making model to analyze a
public policy issue affecting the student’s community
that incorporates defining a problem, analyzing the
potential consequences, and considering the alternatives
SS.912.E.2.9 Analyze how changes in federal spending
and taxation affect budget deficits and surpluses and the
national debt
SS.912.E.2.11 Assess the economic impact of negative
and positive externalities on the local, state, and national
environment
Revised 08/12/10
41
Objective(s) of Learning
Macroeconomics
The student will demonstrate knowledge of macroeconomics by
g) analyzing how changes in federal spending and taxation affect budget deficits and surpluses and the national debt.
Essential Questions
Essential Content & Understandings
Essential Benchmarks
Should the government
always have a balanced
budget?
Federal Budget and National Debt
• Due to scarcity the governent
must budget its resources each
fiscal year. When it spends more
than it collects the government
runs a budget deficit and adds to
the national debt.Although
national debt is considered by
many as a necessary evil, too
much debt will lead to a lack of
confidence by investors causing
the government to pay higher
interest rates on bonds and have
harder time finding funding to
fill the deficit.
SS.912.E.2.9 Analyze how changes in federal spending
and taxation affect budget deficits and surpluses and the
national debt
Revised 08/12/10
Assessments
42
Objective(s) of Learning
Macroeconomics
The student will demonstrate knowledge of macroeconomics by
h) differentiating between direct and indirect taxes, and describe the progressivity of taxes.
Essential Questions
Are taxes a necessary?
Revised 08/12/10
Essential Content & Understandings
Essential Benchmarks
Taxation
• Taxes are either justified by the
benefits-received or ability-topay principle.
• Taxes are clissified according to
the effect they have on those
who are taxed. The three main
U.S. clasifications are:
o Proportional – takes the
samer percentage of all
incomes
o Progressive – takes
larger percentage of
higher incomes than
lower
o Regressive – takes
larger percntage of
lower incomes than
higher
• Major taxes include personal
income, social insurance,
corporate incomes, sales, and
property
SS.912.E.2.8 Differentiate between direct and indirect
taxes, and describe the progressivity of taxes
(progressive, proportional, regressive)
Assessments
SS.912.E.2.9 Analyze how changes in federal spending
and taxation affect budget deficits and surpluses and the
national debt
43
Objective(s) of Learning
Macroeconomics
The student will demonstrate knowledge of macroeconomics by
i) describing monetary and fiscal policy and their affect on stabilization of the economy.
Essential Questions
Essential Content & Understandings
Essential Benchmarks
Explain why we need
stabilization policies if a
market economy will
always correct itself
naturally?
Stabilization Policies: Monetary and
Fiscal
• Monetary Policy – the use of an
increased supply of money to
stabilize the economy.
Popularized by Milton
Friedman. Supposedly lacks the
time lags and politics of fiscal
policy.
• Fiscal Policy – the deliberate use
of taxation and governmental
spending to affect overall
business activity. Popularized by
John Maynard Keynes during
the Great Depression. SupplySide effects is the belief that
lower taxes leads to higher
saving, spending, and investing
in a growing economy
SS.912.E.1.10 Explain the use of fiscal policy (taxation,
spending) to promote price stability, full employment,
and economic growth
Revised 08/12/10
Assessments
SS.912.E.1.11 Explain how the Federal Reserve uses the
tools of monetary policy (discount rate, reserve
requirement, open market operations) to promotes price
stability, full employment, and economic growth
44
Objective(s) of Learning
Macroeconomics
The student will demonstrate knowledge of macroeconomics by
J) describing the causes and conditions of unemployment and its impact on an economy.
Essential Questions
Why would it be
detrimental to the
economy to have all
eligible workers
employed?
Revised 08/12/10
Essential Content & Understandings
Essential Benchmarks
Unemployment
• High unemployment is a
negative sign that leads to a
waste of human resources.
Keeping the economy at full
employment (unemployment
rate below 5%) is a major
economic goal. The four types of
unemployment are:
o Cyclical – associated
with business
fluctuations
o Structural – caused by
changes in the economy
o Seasonal – caused by
changes in the seasons
or weather
o Frictional – temporary
unemployment between
jobs. Most common and
persisitent
SS.912.E.1.10 Explain the use of fiscal policy (taxation,
spending) to promote price stability, full employment,
and economic growth
Assessments
45
Objective(s) of Learning
International Economic Concepts
The student will demonstrate knowledge of international economic concepts by
a) comparing the benefits of imports and exports.
Essential Questions
Essential Content & Understandings
Is it better for a nation
to import or export
goods and services?
Import v. Export
• International trade provides
countries with goods and
services and local jobs that they
otherwise would lack.
• Whether a nation imports or
exports a product depends on the
country’s natuaral resources as
well as its type and amount of
availabel labor and capital.
Essential Benchmarks
Assessments
SS.912.E.3.1 Demonstrate the impact of inflation on
world economies
SS.912.E.3.2 Examine absolute and comparative
advantage, and explain why most trade occurs because
of comparative advantage
SS.912.E.3.3 Discuss the effect of barriers to trade and
why nations sometimes erect barriers to trade or
establish free trade zones
SS.912.E.3.4 Assess the economic impact of negative
and positive externalities on the international
environment
Revised 08/12/10
46
Objective(s) of Learning
International Economic Concepts
The student will demonstrate knowledge of international economic concepts by
b) examining absolute and comparative advantage, and explaining why most trade occurs because of comparative advantage.
Essential Questions
Essential Content & Understandings
Essential Benchmarks
Describe life in America
if we closed our borders
and didn’t allow trade or
other economic activity
with other nations and
foreign companies.
Would we be better off
or worse off?
Absolute v. Comparative Advantage
• Due to resources being
distributed unequally some
economies can produce certain
products more efficiently than
other economies, thus having an
absolute advantage in the
production of that product.
• When an economy is more
efficient than other economies in
producing a product, it has a
comparative advantage in that
product. Economies benefit
when they produce those
products in which they have a
comparative advantage and trade
for other items.
SS.912.E.3.2 Examine absolute and comparative
advantage, and explain why most trade occurs because
of comparative advantage
Revised 08/12/10
Assessments
47
Objective(s) of Learning
International Economic Concepts
The student will demonstrate knowledge of international economic concepts by
c) comparing the current United States economy with other developed and developing nations.
Essential Questions
Essential Content & Understandings
Essential Benchmarks
Explain why there are so
few developed countries
in the world.
Developed v. Developing Nations
• Nations with relatively high
standards of living and
economies baesd more on
industry rather than agriculture
are considered developed. Only
35 of over 192 nations are
considered developed.
• Nations with little industrial
development and relatively low
standards of living are
considered developing. They
posses six key characteristics:
low GDP, agricultural
economies, poor health
conditions, low literacy rates,
rapid population growth, and
weak property rights. The
majority of the world’s
population lives in developing
nations.
SS.912.E.2.12 Construct a circular flow diagram for an
open-market economy including elements of households,
firms, government, financial institutions, product and
factor markets, and international trade
Revised 08/12/10
Assessments
SS.912.E.3.5 Compare the current United States
economy with other developed and developing nations
48
Objective(s) of Learning
International Economic Concepts
The student will demonstrate knowledge of International Economic Concepts by
d) analyzing the process and obstacles of economic development.
Essential Questions
Essential Content & Understandings
Essential Benchmarks
Why is it so difficult for
developing nations to
obtain financing if most
of them have ample
labor and some valuable
natural resources?
Process and Obstacles of Economic
Development
• The three stages of economic
development are agricultural,
manufacturaing, and service.
• A basic problem of development
is financing. One financing
method is foreign aid of which
there are three types: economic,
technical, and military assitance.
International agencies suchas as
the World Bank and IMF
provide help in addition to
individual nations. Reasons for
providing aid include
humanitarian, economic,
political, and military.
• Four main problems can arise if
a nation moves too quickly
between the stages of
development: making of unwise
investments, not enough time to
adapt to changes, use of
innappropriate technology, and
not enough time to move
through the stages.
• Factors that spur economic
growth include trade with the
outside world, an appropriate
incentive structure, a supportive
political structure, natural,
resources, and reduced
population growth.
SS.912.E.3.3 Discuss the effect of barriers to trade and
why nations sometimes erect barriers to trade or
establish free trade zones
Assessments
Revised 08/12/10
49