Economics

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Economics
The economics course provides students with a basic foundation in the field of economics. The course

has five sections: fundamental concepts, microeconomics, macroeconomics, international economics,

and personal finance. In each area, students are introduced to major concepts and themes concerning

that aspect of economics.
Fundamental Economic Concepts

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.

a. Compare command, market, and mixed economic systems with regard to private ownership,

profit motive, consumer sovereignty, competition, and government regulation.

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.

a. Explain why government provides public goods and services, redistributes income, protects

property rights, and resolves market failures.

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.

a. Define productivity as the relationship of inputs to outputs.

b. Give illustrations of investment in equipment and technology and explain their relationship to

economic growth.

c. Give examples of how investment in education can lead to a higher standard of living.

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.

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...
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