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Economics
WHS
Course Outline
Textbook: O’Sullivan, Sheffrin, and Wiggins. Economics. Prentice Hall
What is Economics?
I. Scarcity, Opportunity Cost, Factors of Production, Trade-off, Marginal Analysis,
Production Possibilities
A. Scarcity and the Factors of Production (Ch 1 sect 1)
-Key Concepts:
Economics, Microeconomics, Macroeconomics
Scarcity
Entrepreneurship
Factors of Production
QUIZ
B. Production Possibilities, Trade-offs, Marginal Analysis (Ch 1 sect 2)
- Key Concepts
Trade-offs
Guns and Butter
Opportunity Cost
Production Possibilities
Marginal Cost
Marginal Benefit
Rational Choice
QUIZ
C. Production Possibilities (Ch 1 sect 3)
- Key Concepts
Production Possibility Curves and Frontier
Efficiency
Trade-off
Underutilization (Underemployment)
Economic Growth
Law of Increasing Costs
QUIZ
UNIT TEST
II. Economic Systems and American Free Enterprise
A. Three Economic Questions (Ch 2 sect 1 – skip most of section)
- Key Concepts
Three Economic Questions (What, How, and Who)
B. Economic Systems: Traditional and Free Market (Ch 2 sect 2)
- Key Concepts
Traditional Economy (pg 28)
Free Market Economy
Circular Flow Model (Households, Firms, Factor Market, Product
Market)
Self-Interest
Competition
Invisible Hand
Laissez-faire (pg 39)
Private Property (pg 40)
Adam Smith’s Wealth of Nations
Advantages of Free Market System
QUIZ
C. Economic Systems: Centrally Planned/ Command (Ch 2 sect 3)
- Key Concepts
Centrally Planned Economy
Decision-making process of centrally planned economies
Socialism
Communism
Karl Marx’s Communist Manifesto
Disadvantages of Centrally Planned Economies
QUIZ
D. Economic Systems: Mixed (Ch 2 sect 4)
- Key Concepts
Reasons for Government Involvement
Balancing Needs and Freedom
Adjusted Circular Flow Model (add government)
Compare Free Market and Centrally Planned (see figure 2.4)
QUIZ
E. The American Free Enterprise System (Ch 3 – skip sect 2)
- Key Concepts (Ch 3 sect 1)
Free Enterprise (pg 43)
Basic Principles of Free Enterprise (Profit, Opportunity, Legal
Equality, Private Property, Voluntary Exchange)
Economic Freedom & Property Rights (Constitutionality)
Government’s Role
QUIZ
- Key Concepts (Ch 3 sect 3 and 4)
Why does the government involve itself?
Public Goods
Public and Private Sectors
Infrastructure
Market Failure
Externalities
The Safety Net: Poverty, Welfare, Transfer Payments, Health and
Education
QUIZ
UNIT TEST
Microeconomics
I. Demand, Supply, and Equilibrium
A. Understanding Demand (Ch 4 sect 1)
- Key Concepts
Demand
Law of Demand
Substitution and Income Effect
Demand Schedule & Graphing Demand
Market Demand versus Individual Demand
QUIZ
B. Shifts in Demand and Elasticity (Ch 4 sect 2 and 3)
- Key Concepts (Ch 4 sect 2)
Ceteris paribus
Change in Quantity Demand
Change in Demand (what causes a shift?)
- Key Concepts (Ch 4 sect 3 – skip the elasticity math calculations –
keep it conceptual)
Elasticity
Inelastic and Elastic
Factors Affecting Elasticity
Total Revenue
QUIZ
C. Understanding Supply (Ch 5 sect 1 – skip Supply Elasticity)
- Key Concepts
Supply
Law of Supply
Quantity Supplied
Supply Schedule & Graphing Supply
D. Production Costs (Ch 5 sect 2)
- Key Concepts
Productivity (Marginal Product & Average Product)
Law of Diminishing Returns
Production Costs (Fixed Costs, Variable Costs, Marginal Cost,
Marginal Revenue, Average Cost)
Shutdown Decision
F. Shifts in Supply
- Key Concepts (Ch 5 sect 3)
Main Causes of Supply Shifts (Input Costs, Subsidies & Taxes,
Regulation)
Other Causes of Supply Shifts
QUIZ
G. Equilibrium
- Key Concepts (Ch 6 sect 1)
Equilibrium
Disequilibrium
Shortage & Surplus
Price Ceilings & Rent Controls
Price Floors & Minimum Wage
QUIZ
H. Equilibrium Price and Quantity Changes (Ch 6 sect 2)
- Key Concepts
Shifts in Supply & its effect on Price and Quantity
Shifts in Demand & its effect on Price and Quantity
Skip Ch 6 sect 3
QUIZ
UNIT TEST
II. Market Structures
A. Perfect Competition (Ch 7 sect 1)
- Key Concepts
Perfect Competition Characteristics
Barriers to Entry & Imperfect Competition
QUIZ
B. Pure Monopoly (Ch 7 sect 2)
- Key Concepts
Monopoly Characteristics
Economies of Scale
Natural Monopolies
Legal (Government) Monopolies
Price Discrimination
QUIZ
C. Monopolistic Competition and Oligopoly
- Key Concepts
Monopolistic Competition Characteristics
Non-price competition
Oligopoly Characteristics
Collusion and Cartels
QUIZ
D. Regulation & Deregulation (Ch 7 sect 4)
- Key Concepts
Antitrust Laws
Deregulation
QUIZ
UNIT TEST
III. Business Types
A. Sole Proprietorships (Ch 8 sect 1)
-
Key Concepts
Sole Proprietorship
Advantages & Disadvantages
QUIZ
B. Partnerships and Franchises (Ch 8 sect 2)
- Key Concepts
Partnership Types
Advantages & Disadvantages of Partnerships
Franchises
Advantages and Disadvantages of Franchises
QUIZ
C. Corporations (Ch 8 sect 3)
- Key Concepts
Types of Corporations
Advantages & Disadvantages of Corporations
Mergers
QUIZ
D. Nonprofits (Ch 8 sect 4)
- Key Concepts
Types of Nonprofits
QUIZ
UNIT TEST
Macroeconomics
I. Measuring the Economy
A. Business Cycle (Ch 12 sect 2)
1. Business Cycle: Peaks, Troughs, Recessions, Expansions
2. Economic Growth
3. What keeps the Business Cycle going?
4. Forecasting
QUIZ
B. GDP (Ch 12 Sect 1)
1. National Income Accounting
2. GDP in detail
3. Expenditure and Income Approaches (Circular Flow)
4. Nominal versus Real GDP
5. Limitations of GDP
6. Other measurements: GNP, NNP etc
7. Aggregate Demand and Aggregate Supply (AS/AD Model)
8. Economic growth using AS/AD model
QUIZ
C. Labor and Unemployment (Ch 9 sect 1 and 3: Ch 13 sect 1)
1. Labor Force
2. Labor Trends
3. Organized Labor
4. Decline of the Labor Movement
5. Unemployment Types: Frictional, Structural, Cyclical, Seasonal
6. Poverty and income distribution (pgs 349-356)
QUIZ
D. Inflation (Ch 13 sect 2)
1. Inflation Basics (Real versus Nominal)
2. Price Indices & the CPI
3. Causes of Inflation
4. Effects of Inflation
UNIT TEST
II. Government, Taxes, and Fiscal Policy
A. Taxes (Ch 14 sect 1-2)
- Key Concepts
Taxing Authority
Reasons for Taxing: Public Goods & Externalities (pgs 62-67)
Tax Structures: Progressive, Regressive, Proportional
Tax Burden
Federal Taxes
Corporate Taxes
Social Security and other ‘taxes’
QUIZ
B. Government Spending (Ch 14 sect 3-4)
- Key Concepts
Federal Spending: Mandatory & Discretionary Spending
Entitlements & Aid to State and Local Governments
State and Local Spending: Budgets
State Expenditures
Tax revenue sources
Local spending
QUIZ
C. Fiscal Policy (Ch 15)
- Key Concepts
Federal Budget
Expansionary and Contractionary Policy
Limits of Fiscal Policy
Classical Economics
Keynesian Economics
Supply-Side Economics
Budget Deficit and Surplus
National Debt
QUIZ
UNIT TEST
III. Money & Banking
A. Money (Ch 10 sect 1)
- Key Concepts
Three uses of money
Six Characteristics of money
Source of money’s value
Money Supply (pgs 264-265)
QUIZ
B. Banking (Ch 10 sect 3)
- Key Concepts
Functions of Banks
Fractional reserve Banking
Types of Financial Institutions
Electronic Banking
QUIZ
C. Federal Reserve Bank (Ch 16 sect 1-2)
- Key Concepts
Basic Definition of the Fed (pages 259-260)
Fed structure: Board of governors, 12 banks, members, FOMC
Fed functions (Ch 16 sect 2)
QUIZ
D. Monetary Policy (Ch 16 sect 3-4)
- Key Concepts
Money Creation
Reserve requirements
Discount Rate
OMO
Interest Rates
Lag Time
QUIZ
UNIT TEST
IV. Trade and the Global Economy
A. Trade Basics (Ch 17 sect 1)
- Key Concepts
Specialization
Absolute and Comparative Advantage
Trade and Employment in the USA
QUIZ
B. Trade Agreements (Ch 17 sect 2)
- Key Concepts
Trade Barriers: Tariffs and Quotas
Effects of Trade Barriers
Protectionism: Pros and Cons
Free Trade: WTO, NAFTA, EU
QUIZ
C. Measuring Trade
- Key Concepts
Foreign Exchange
Trade Balance: Deficits and Surpluses
QUIZ
UNIT TEST
End of Course Assessment