Download AP Economic ELO’s businesses.

AP Economic ELO’s
1. Students should be able to understand terms related to individual consumers and
businesses.
2. Be able to explain the basic principles of the U. S. free enterprise system.
3. Be able to explain how government actions affect the way companies deal with
economic growth and decline.
4. Students should be able to understand how supply and demand affect society,
5. Be able to compare the free enterprise system of the United States with the
systems of other countries.
6. Understand the 10 principles of economics and how they tie together the
consumer with society.
7. Understand the theory of comparative economic advantage and explain how
people benefit from economic interdependence.
8. Explain how the economy coordinates interdependence economic actors, through
the market force of supply and demand.
9. Know the concept of consumer and producer surplus.
10. Explain the efficiency of markets, and the costs of taxation, and the benefits of
international trade.
11. Know how the overall quantity of production and the overall price level are used
to monitor developments in the economy as a whole.
12. Understand Savings, Investments, and the financial system and how they are
interactive in our society.
13. Describe how our government system determines what variables are used in
determining Unemployment Rate.
14. Describe the forces that in the long run determine the key real variables, including
growth in GDP, savings, investments, real interest rates, and unemployment.
15. Understand how the monetary system is crucial in determining the long-run
behavior of the price level, the inflation rate, and other nominal variables.
16. Understand the Macroeconomics of Open Economics.
17. Know how nations interact with other nations and how it is described by trade
balance, net foreign investments, and exchange rates.
18. Know the long-run model of open economics and how it explains short-run
economic fluctuations.
19. Explain the short-run effect of monetary and fiscal policy, and the short-run
linkage between real and nominal variables.
20. Understand short-run economic fluctuations.
21. Know how the model of aggregated demand and aggregate supply explain shortrun economic fluctuations.
22. Explain the short-run effects of monetary and fiscal policy, and the short-run
linkage between real and nominal variables.