What is Economics?

• define the study of economics
• analyze ways that economics influences our daily lives
• identify three basic economic questions: What will be produced? How will it be produced? For whom will it be produced?

Scarcity ad Smart Choices

• differentiate between wants and needs in relation to scarcity, choice, and opportunity cost
• apply the concepts of scarcity and opportunity cost to explain why choices are necessary
• analyze situations c-r-e-a-t-i-n-g opportunity cost in your life and the world around you
• justify the choice you make based on a costs and benefits analysis
• examine the Law of Diminishing Marginal Utility

Demand

• differentiate between demand and quantity demanded
• c-r-e-a-t-e and analyze demand curves

Supply

• differentiate between supply and quantity supplied
• c-r-e-a-t-e and analyze supply curves and shifts in supply

The Market Price

• c-r-e-a-t-e graphic illustrations of situations that would cause changes in supply and demand
• analyze changes in equilibrium price from market graphs
• demonstrate how the equilibrium price of a product is determined by the interaction of supply and demand in the marketplace

Money

• explain the functions and identify characteristics of the money supply
• distinguish between money and currency
• analyze the significance of currency in today's economy
• evaluate the role of currency in solving economic problems

Taxes and You

• differentiate between gross and net income
• distinguish between direct and indirect taxes
• describe the progressivity of taxes
• identify types of taxes and how they are paid
• c-r-e-a-t-e a tax return

Save, Invest, or Spend

• explain the differences between savings and checking accounts, including non-traditional savings accounts
• compare various savings and investment types, including risk and return of each
• explain the importance of diversification in investing
• identify the costs and benefits of immediate spending versus saving for future purchases
• describe the relationship between inflation, nominal interest rate, and real interest rate
• explain the government's role in the financial markets
• explain how investor actions, taxes and fees, the U.S. economy, and the global marketplace impact the rate of return on investment

Your Budget

• explain the purpose of c-r-e-a-t-i-n-g a budget
• identify the categories of expenses addressed by a budget
• construct a one-year budget plan based on a specific career path

Markets and You

Circular Flow

• identify sections of a circular-flow diagram
• relate a current issue to the relationships within a circular-flow diagram
• construct a circular-flow diagram based on a current issue

Factors of Production

• define factors of productionland, labor, capital, and entrepreneurship
• identify why various factors of production are necessary in business operations
• classify factors of production needed for a specific career path or business venture
• identify entrepreneurs from various socioeconomic backgrounds
• analyze the contributions of entrepreneurs to the developing United States

Business Types

• identify and compare different forms of business organization
• evaluate a business organization choice

Selling it

• define and compare characteristics of monopoly, oligopoly, monopolistic competition, and pure competition
• classify pros and cons of each structure from multiple perspectives
• explore ways businesses engage in competition to increase their market share

Maximizing Profit

• define marginal cost analysis, marginal cost, marginal revenue, and the profit-maximizing rule
• c-r-e-a-t-e a graph to explain how firms determine price and output through marginal cost analysis

Building a Better Business

• describe factors that impact the earnings of workers
• analyze production possibilities curves to explain business choices
• analyze impact of capital investments on productivity and growth

Externalities

• define and identify positive and negative externalities
• analyze the impact of externalities on consumers and society
• recognize that the consumption of goods and services can affect others
• analyze the effect of ownership and finance on the creation of externalities

Government Regulation

• c-r-e-a-t-e a diagram to explain problems of wage and price controls
• evaluate the rationale for wage and price controls
• identify natural monopolies and the purposes of government regulation of those firms

Making Better Choices

• use a decision-making model to analyze how public policies affect local communities

The National Economy and You

Ups and Downs

• describe the phases of the business cycle
• define GDP, inflation, contraction, trough, recession, growth, unemployment, and peak

Economic Systems

• differentiate theories of prominent economists
• analyze which economic theories you agree with most
• identify traditional, market, command, and mixed economies
• compare how the economic systems differ in approach to the three basic economic questions
• recognize the role of society and culture in evaluating approaches to economic organization

Fiscal Policy

• identify tools and explain goals of fiscal policy
• distinguish between debt, deficit, and surplus
• analyze how changes in fiscal policy affect the national budget
• evaluate whether a balanced budget should be required by law

The Federal Reserve

• describe the organization and functions of the Federal Reserve System
• identify relationships between consumers, banks, and the Federal Reserve System

The Fed and Monetary Policy

• identify tools of monetary policy
• explain goals of monetary policy
• explain how the Federal Reserve uses monetary policy to promote national economic goals

Broad Economic Goals

• describe broad economic goals
• compare indicators of economic health

Why Nations Trade

• define comparative advantage and balance of trade
• explain the meanings of and differences between absolute and comparative advantage
• analyze comparative advantage from table data

Free Trade and Barriers

• define and identify barriers to trade
• analyze costs and benefits of various protectionism strategies
• evaluate potential for a trade relationship between two countries

Effects of Inflation

• identify inflation and inflation's impact on society
• analyze the Consumer Price Index as a measure of inflation
• identify how inflation affects the international economy
• relate inflation to international exchange rates