Download PLC unit 1 fall econ

Kell Brand Unit Plan (Revised for 2012-2013)
Developed By: Steven Robinson
Name of Collaborative: Economics
Curriculum Area: Social Studies
Unit Title: Intro to Economics, Unit 1 (Part A Fundamentals; Part B Microeconomics)
Time Frame: approximately six weeks (1/8-2/20)
Note: Each teacher keeps his/her own copy reflecting teacher’s unit plan
Desired Results
Content Standards ( # and brief description): Copy and paste from Picasso
Part A: Fundamentals
SSEF1 The student will explain why limited productive resources and unlimited wants result in
scarcity, opportunity costs, and tradeoffs for individuals, businesses, and governments.
a. Define scarcity as a basic condition that exists when unlimited wants exceed limited productive
resources.
b. Define and give examples of productive resources (factors of production) (e.g., land (natural),
labor (human), capital (capital goods), entrepreneurship).
c. List a variety of strategies for allocating scarce resources.
d. Define opportunity cost as the next best alternative given up when individuals, businesses, and
governments confront scarcity by making choices.
SSEF2 The student will give examples of how rational decision making entails comparing the
marginal benefits and the marginal costs of an action.
a. Illustrate by means of a production possibilities curve the trade offs between two options.
b. Explain that rational decisions occur when the marginal benefits of an action equal or exceed the
marginal costs.
SSEF3 The student will explain how specialization and voluntary exchange between buyers and
sellers increase the satisfaction of both parties.
a. Give examples of how individuals and businesses specialize.
b. Explain that both parties gain as a result of voluntary, non-fraudulent exchange.
SSEF4
The student will compare and contrast different economic systems, and explain how they answer
the three basic economic questions of what to produce, how to produce and for whom to produce.
Element: SSEF4.a
Compare command, market, and mixed economic systems with regard to private ownership, profit
motive, consumer sovereignty, competition, government regulation.
Element: SSEF4.b
Evaluate how well each type of system answers the three economic questions and meets the broad
social and economic goals of freedom, security, equity, growth, efficiency and stability.
SSEF5
The student will describe the roles of government in a market economy.
Element: SSEF5.a
Explain why government provides public goods and services, redistributes income, protects
property rights and resolves market failures.
Element: SSEF5.b
Give examples of government regulation and deregulation and their effects on consumers and
producers.
SSEF6
The student will explain how productivity, economic growth and future standards of living are
influenced by investment in factories, machinery, new technology and the health, education and
training of people.
Element: SSEF6.a
Define productivity as the relationship of inputs to outputs.
Element: SSEF6.b
Give illustrations of investment in equipment and technology and explain their relationship to
economic growth.
Element: SSEF6.c
Give examples of how investment in education can lead to a higher standard of living.
Part B: Microeconomic Concepts
SSEMI1 The student will describe how households, businesses, and governments are
interdependent and interact through flows of goods, services, and money.
a. Illustrate by means of a circular flow diagram, the Product market; the Resource (factor) market;
the real flow of goods and services between and among businesses, households, and government;
and the flow of money.
b. Explain the role of money as a medium of exchange and how it facilitates exchange.
SSEMI2 The student will explain how the Law of Demand, the Law of Supply, prices, and profits
work to determine production and distribution in a market economy.
a. Define the Law of Supply and the Law of Demand.
b. Describe the role of buyers and sellers in determining market clearing price.
c. Illustrate on a graph how supply and demand determine equilibrium price and quantity.
d. Explain how prices serve as incentives in a market economy.
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
a. Identify and illustrate on a graph factors that cause changes in market supply and demand.
b. Explain and illustrate on a graph how price floors create surpluses and price ceilings create
shortages.
c. Define price elasticity of demand and supply.
SSEMI4 The student will explain the organization and role of business and analyze the four types of
market structures in the U.S. economy.
b. Explain the role of profit as an incentive for entrepreneurs.
c. Identify the basic characteristics of monopoly, oligopoly, monopolistic competition, and pure
competition.
Content (Unpack Nouns from Standards):
Skills (Unpack Verbs from Standards):
Students will know…
Students will be able to…
Part A:
•
The driving force of economics
(scarcity). And in decision-making, the
difference between tradeoffs and opportunity
costs
•
The difference between the production
possibility curve and the production possibility
frontier.
•
The two directional flow of the circular
flow model.
•
Adam Smith’s concepts of the invisible
hand and laissez faire concepts.
The rights of the American people in a free
enterprise system
Part A:
•
Identify opportunity cost and trade-off
•
Draw a production possibilities curve
•
Describe the basic economic questions all
economies must ask
•
Identify the characteristics of the four
economic systems.
•
List the five economic goals.
•
Draw a circular flow model
•
Discuss Adam Smith.
•
Explain the effects of technology on
productivity.
•
Tell what is a public good
Part B:
How to create a demand graph, supply graph
and a supply and demand graph
•
How to show a increase and decrease
shift on the graphs
•
What causes a change on the demand,
or supply curve
•
How to calculate revenue
•
The difference between a surplus and a
shortage on a graph
•
What is a barrier (in each four markets)
•
The four types of market structures
How to identify a price ceiling and price floor
on a graph.
Part B:
Explain the law of demand and the law of supply
•
Understand how the substitution effect and
the income effect influence decisions.
•
Create a demand schedule and a supply
schedule
•
Interpret a demand graph and a supply
graph.
•
Understand the difference between a
change in quantity and a shift on the demand
curve and the supply curve
•
Identify the determinants of demand and
the determinants of supply
•
Identify the factors that affect elasticity
•
Explain how firms use elasticity and
revenue and time (supply) to make decisions
•
Analyze the production costs of a firm
•
Identify three ways that the government
can influence the supply of a good
•
Explain how supply and demand create
balance in the marketplace.
•
Analyze the effects of price ceilings and
price floors.
•
List the advantages of a price-based
system
Describe the four conditions that are in place in a
perfectly competitive market.
Essential Vocabulary: What critical vocabulary must be learned in order to master the content?
Part A:
Chapter 1: economics, need, want, scarcity, factors of production (land, labor, human capital,
physical capital,, entrepreneur. Trade off, opportunity cost, thinking on the margin. Production
possibility curve and frontier, efficiency, underutilization, cost, law of increasing costs. Chapter 2:
economic system, safety net, standard of living, traditional economy, market economy, centrally
planned economy, command economy, mixed economy, market, specialization, household, firm
profit, product market, self-interest, incentive, competition, Invisible Hand, consumer sovereignty,
socialism, communism, authoritarian, laissez faire, private property, free enterprise. Privatized.
Chapter 3: Profit motive, free contract, voluntary exchange, competition, public disclosure laws,
public interest, macroeconomics, microeconomics, gross, domestic product, business cycle,
technology, public good, public sector, private sector market failure externality, poverty threshold,
welfare, cash transfers, in-kind benefits.
Part B:
Ch.4: demand, law of demand, substitution effect, income effect, demand schedule, demand curve,
certeris paribus, normal good, inferior good, complements, substitutes, elasticity of demand,
inelastic, elastic total revenue Ch. 5: supply, law of demand, quantity supplied, supply schedule,
variable, supply curve, elasticity of supply, marginal product of labor, increasing marginal returns,
diminishing marginal returns, fixed cost, variable cost, total cost marginal cost marginal revenue,
subsidy, excise tax, regulation. Ch.6: equilibrium, price ceiling, price floor, rent control minimum
wage, surplus, shortage, rationing, black market, spillover costs.
Essential or Guiding Questions: What questions must students be able to answer to show mastery of the
standards?
Part A:
1. What economic decisions are you making on a daily basis?
2. What is the difference between opportunity cost and trade-off?
3. What is the purpose of the Production Possibilities Curve?
4. What are the basic economic questions every economy must ask itself?
5. What type of economic system is the USA?
6. Who is Adam Smith?
7. What are the two types of markets located on the circular flow model?
8. What are the basic principles of the US free enterprise system?
9. What is the effect of technology on productivity?
10. What is a market failure?
11. What are examples of public goods?
Part B:
1. How do buyers and sellers make decisions in a market economy?
2. How are households, business, and government interrelated through markets and the flow of money?
3. What is the Law of demand?
4. What is the Law of Supply?
5. What forces lead to changes (shifts) in supply and demand
6. How are prices established in a market economy?
7.How do available substitutes, income, and time affect consumer responses to price changes?
8. What are the four market types?