Economics. Chapter. 1 E.2 How do producers and consumers deal with scarcity, opportunity costs, and trade offs?

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1 Chapter Economics Essential questions 1 st nine weeks - Scope and sequence Scarcity and Economic Reasoning 1 E.1 What are the productive resources and why are they necessary to produce goods and services? 1 E.2 How do producers and consumers deal with scarcity, opportunity costs, and trade offs? State Standard E.1 Define each of the productive resources (natural, human, capital) and explain why they are necessary for the production of goods and services. (E) E.2 Explain how consumers and producers confront the condition of scarcity, by making choices that involve opportunity costs and tradeoffs. (E) 2 E.4 How do people respond to incentives? E.4 Describe how people respond predictably to positive and negative incentives. (C, E) 3 E.5 Why do people engage in voluntary exchange? E.5 Explain that voluntary exchange occurs when all participating parties expect to gain. (E) 2 E.3 Explain the economic goals of a society. E.3 Identify and explain the broad goals of economic policy such as freedom, efficiency, equity, security, growth, price stability, and full employment. (C, E) 2 E.6 Compare and contrast how economic systems answer the 3 economic questions. 3 E.7 Why are clearly defined and enforced property rights essential to a market economy? E.6 Compare and contrast how the various economic systems (traditional, market, command, mixed) try to answer the questions: What to produce? How to produce it? For whom to produce? (E) E.7 Describe how clearly defined and enforced property rights are essential to a market economy. TN Ready Writing 7. Conduct short as well as more sustained research projects to answer a question (including a self-generated question) or solve a problem; narrow or broaden the inquiry when appropriate; synthesize multiple sources on the subject, demonstrating understanding of the subject under investigation.

2 (E) 1 E.8 Create a production possibilities curve. E.8 Use a production possibilities curve to explain the concepts of choice, scarcity, opportunity cost, tradeoffs, unemployment, productivity, and growth. (E) 2 E.9 Compare and contrast the theories behind capitalism, socialism and communism using evidence from historical examples. various E.10 Analyze the following economists theories: Adam Smith, Thomas Malthus, Karl Marx, John Maynard Keynes, Friedrich Hayek, Milton Friedman, Ben Bernanke E.9 Compare and contrast the theoretical principles of the economic systems of capitalism, socialism, and communism, and use historical examples to provide evidence of their effectiveness. (E, H) E.10 Examine informational text and primary sources to analyze the major ideas of the following economists: Adam Smith, Thomas Malthus, Karl Marx, John Maynard Keynes, Friedrich Hayek, Milton Friedman, Ben Bernanke Writing 2- Write informative/explanatory texts, including the narration of historical events. Writing 4- Produce clear and coherent writing. Writing 8- Gather relevant information from multiple print and digital sources. Writing 9- Draw evidence from informational texts to support analysis, reflection, and research. Reading 6. Determine an author s point of view or purpose in a text in which the rhetoric is particularly effective, analyzing how style and content contribute to the power, persuasiveness, or beauty of the text. Supply and Demand 4,5,6 E.11 Define supply and demand. E.11 Define supply and demand, and provide relevant examples. (E) Reading 4. Determine the meaning of words and phrases as they are used in a text, including figurative, connotative, and technical meanings; analyze how an author uses and refines the meaning of a key term or terms over the course of a text (e.g., how Madison defines faction in Federalist No. 10).

3 6 E.12 How do buyers and sellers influence the equilibrium price? E.12 Describe the role of buyers and sellers in determining the equilibrium price. (E) Reading 2. Determine two or more central ideas of a text and analyze their development over the course of the text, including how they interact and build on one another to provide a complex analysis; provide an objective summary of the text. 6 E.13 Explain how prices send signals to buyers and sellers? E.13 Describe how prices of products as well as interest rate and wage rates send signals to buyers and sellers of products, loanable funds, and labor. (E) 2 E.14 Explain consumer sovereignty. E.14 Explain that consumers ultimately determine what is produced in a market economy (consumer sovereignty). (C, E) 2 E.15 What is the function of profit in a market economy? E.15 Explain the function of profit in a market economy as an incentive for entrepreneurs to accept the risks of business failure. (C, E) 4,5,6 E.16 Create and interpret supply and demand curves. 4,5,6 E.17 Identify factors that cause changes in supply and demand. 4,5,6 E.18 Create and interpret shifts in supply and demand curves. 6 E.19 How do rent control and minimum wage laws create surpluses and shortages? 6 E.20 Cite textual evidence in support for or against minimum wage laws. E.16 Demonstrate how supply and demand determine equilibrium price and quantity in the product, resource, and financial markets, including drawing and reading supply and demand curves. (E) E.17 Identify factors that cause changes in market supply and demand. (E) E.18 Demonstrate how changes in supply and demand influence equilibrium price and quantity in the product, resource, and financial markets. (E) E.19 Demonstrate how government wage and price controls, such as rent controls and minimum wage laws, create shortages and surpluses. (E) E. 20 Cite evidence from appropriate informational texts to argue in an opinion piece for or against the minimum wage. (E)

4 6 E.21 Explain and predict changes in quantity and price fluctuations using price elasticity of demand and supply? 11 E.22 How do financial markets channel funds from savers to investors? E.21 Use concepts of price elasticity of demand and supply to explain and predict changes in quantity as prices fluctuate. (E) E.22 Explain how financial markets, such as the stock market, channel funds from savers to investors. (E) Writing 2- Write informative/explanatory texts, including the narration of historical events. Writing 4- Produce clear and coherent writing. Writing 8- Gather relevant information from multiple print and digital sources. Writing 9- Draw evidence from informational texts to support analysis, reflection, and research. Reading 1. Cite strong and thorough textual evidence to support analysis of what the text says explicitly as well as inferences drawn from the text, including determining where the text leaves matters uncertain. Market Structures 8 E.23 Compare and contrast sole proprietorship, partnership, and corporations E.23 Compare and contrast the following forms of business organization: sole proprietorship, partnership, and corporation. (E) 8 E.24 How do firms grow using each of the following: reinvestment of funds and mergers? 8, 9 E.25 Analyze text to summarize the role and history of labor unions, multinational corporations, and nonprofit organizations. E.24 Analyze the various ways and reasons that firms grow either through reinvestment of financial capital obtained through retained earnings, stock issues and borrowing, or through horizontal, vertical, and conglomerate mergers. (E) E.25 Analyze key details and central ideas from diverse forms of informational text to summarize the role and historical impact of economic institutions, such as labor unions, multinationals, and nonprofit organizations, in market economies. (E) Writing 2- Write informative/explanatory texts, including the narration of historical events.

5 Writing 4- Produce clear and coherent writing. Writing 8- Gather relevant information from multiple print and digital sources. 7 E.26 Identify the characteristics of monopoly, oligopoly, monopolistic competition, and pure competition. 7 E.27 How does competition with many sellers lower costs and encourage producers to make more? E.26 Identify the basic characteristics of monopoly, oligopoly, monopolistic competition, and pure competition. (H, E) E.27 Explain how competition among many sellers lowers costs and prices and encourages producers to produce more. (E) Writing 9- Draw evidence from informational texts to support analysis, reflection, and research. 5 E.28 Demonstrate how firms with market power can determine price and output through marginal analysis. 6 E.29 Describe price and non-price competition among firms. E.28 Demonstrate how firms with market power can determine price and output through marginal analysis. (E) E.29 Explain ways that firms engage in price and non-price competition. (E) Writing 10. Write routinely over extended time frames (time for research, reflection, and revision) and shorter time frames (a single sitting or a day or two) for a range of tasks, purposes, and audiences. 3 E.30 Analyze text to determine how investments in R&D, equipment and technology, and worker training increases productivity. E.30 Examine informational text in diverse formats and media to analyze how investment in research and development, equipment and technology, and training of workers increases productivity. (E) Writing #2- Write informative/explanatory texts, including the narration of historical events. Writing #4- Produce clear and coherent writing. Writing #8- Gather relevant information from multiple print and digital sources. 9 E.31 How are wages determined? E.31 Describe how the earnings of workers are determined by the market value of the product produced or service provided, workers productivity, incentives, collective bargaining, and discrimination. (E) 3 E.32 How do taxes, regulations, education, and research support policies that influence entrepreneurs in a free- enterprise system? E.32 Analyze the role and productivity of entrepreneurs in a free-enterprise system and how entrepreneurial decisions are influenced by tax, regulatory, education, and research support policies. (E, C) Writing #9- Draw evidence from informational texts to support analysis, reflection, and research.

6 2nd nine weeks Scope and sequence The Role of Government 3 E.33 How does the government respond to social needs by providing public goods and services? E.33 Explain how government responds to perceived social needs by providing public goods and services. (E, P) Writing 7. Conduct short as well as more sustained research projects to answer a question (including a self-generated question) or solve a problem; narrow or broaden the inquiry when appropriate; synthesize multiple sources on the subject, demonstrating understanding of the subject under investigation. Reading 5. Analyze and evaluate the effectiveness of the structure an author uses in his or her exposition or argument, including whether the structure makes points clear, convincing, and engaging. 14,15 E.34 What are the major revenue and expenditures of local, state, and federal budgets? E.34 Describe major revenue and expenditure categories and their respective proportions of local, state, and federal budgets. (E, P) Writing 10. Write routinely over extended time frames (time for research, reflection, and revision) and shorter time frames (a single sitting or a day or two) for a range of tasks, purposes, and audiences. 7 E.35 What are the laws and regulations in the United States that promote competition? 7 E.36 What are the characteristics of natural monopolies? Why do governments regulate these monopolies, such as utilities? 14 E.37 Define progressive, proportional, and regressive taxation. E.35 Identify laws and regulations adopted in the United States to promote competition among firms. (E, H, P) E.36 Describe the characteristics of natural monopolies and the purposes of government regulation of these monopolies, such as utilities. (E, P) E.37 Define progressive, proportional, and regressive taxation. Reading 4. Determine the meaning of words and phrases as they are used in a text, including figurative, connotative, and technical meanings; analyze how an author uses and refines the meaning of a key term or terms over the course of a text (e.g., how Madison defines faction in Federalist No. 10). 14 E.38 What are the argument for or against Social Security programs? E.38 Use appropriate informational text to analyze costs and benefits of government policies (Social Security, Medicare, Earned Income credits) and cite evidence from multiple sources to argue for or against one example of such a government policy or program.

7 15 E.39 Write a problem-solution piece recommending a course of action in regard to the national debt. (Use 3 formats) E.39 Research textual evidence in diverse formats to write a problem-solution piece recommending a course of action in regard to the national debt. 15,16 E.40 Define and explain fiscal and monetary policy incorporating the various schools of thought. 15 E.41 How does the government use fiscal policy, taxing and spending decisions, to promote economic growth? 16 E.42 How does the Federal Reserve uses monetary tools to promote economic growth? National Economic Performance E.40 Define and explain fiscal and monetary policy and the various schools of thought including Keynesian, Supply-siders, and Monetarists on how, when and if these policies should be used to stabilize the economy. E.41 Analyze how the government uses taxing and spending decisions (fiscal policy) to promote price stability, full employment, and economic growth E.42 Analyze how the Federal Reserve uses monetary tools to promote price stability, full employment, and economic growth. Reading 8. Delineate and evaluate the reasoning in seminal U.S. texts, including the application of constitutional principles and use of legal reasoning (e.g., in U.S. Supreme Court majority opinions and dissents) and the premises, purposes, and arguments in works of public advocacy (e.g., The Federalist, presidential addresses). 12,13 E.43 Define aggregate supply and demand, Gross Domestic Product (GDP), economic growth, unemployment, and inflation. 12,13 E.44 How are Gross Domestic Product (GDP), economic growth, unemployment, and inflation calculated? 12 E.45 What is the impact of events in United States history, such as wars and technological developments on business cycles? E.43 Define aggregate supply and demand, Gross Domestic Product (GDP), economic growth, unemployment, and inflation. E.44 Explain how Gross Domestic Product (GDP), economic growth, unemployment, and inflation are calculated. E.45 Analyze the impact of events in United States history, such as wars and technological developments on business cycles. Reading 9. Analyze seventeenth-, eighteenth-, and

8 nineteenth-century foundational U.S. documents of historical and literary significance (including The Declaration of Independence, the Preamble to the Constitution, the Bill of Rights, and Lincoln s Second Inaugural Address) for their themes, purposes, and rhetorical features. 13 E.46 What are the different causes of inflation, and explain who gains and loses because of inflation? 2,12 E.47 Using the circular flow model, explain the interaction among households, firms, and the government. E.46 Identify the different causes of inflation, and explain who gains and loses because of inflation. E.47 Explain that a country s overall level of income, employment, and prices are determined by the individual spending and production decisions of households, firms, and the government. Reading 7. Integrate and evaluate multiple sources of information presented in different media or formats (e.g., visually, quantitatively) as well as in words in order to address a question or solve a problem. 12 E.48 What is the relationship between aggregate supply and aggregate demand and the levels of unemployment and inflation in an economy? Money and the Role of Financial Institutions E.48 Illustrate and explain how the relationship between aggregate supply and aggregate demand is an important determinant of the levels of unemployment and inflation in an economy. 10 E.49 What are the three uses of money? E.49 Explain the basic functions of money including its role as a medium of exchange, store of value, unit of account. Reading 10. By the end of grade 12, read and comprehend literary nonfiction at the high end of the grades 11 CCR text complexity band independently and proficiently. 13 E.50 Describe and analyze the growth of income inequality in the United States and worldwide using the Lorenz curve. E.50 Describe the growth of income inequality in the United States and worldwide using the Lorenz curve and analyze the reasons for this increasing disparity of income. 10 E.51 What are the components of the money supply of the United States? 10 E.52 What is the role of banks and other financial institutions in the economy of the United States? E.51 Identify the composition of the money supply of the United States. E.52 Explain the role of banks and other financial institutions in the economy of the United States. Reading 3. Analyze a complex set of ideas or sequence of events and explain how specific individuals, ideas, or events interact and develop over the course of the text.

9 16 E.53 How is the Federal Reserve System organized and what are the functions? Trade E.53 Describe the organization and functions of the Federal Reserve System and identify the current Federal Reserve chairperson. 17 E.54 Provide evidence from texts to explain the benefits of trade among individuals, regions, and countries. 17 E.55 What are the differences between absolute and comparative advantage? 17 E.56 Define trade barriers, such as quotas and tariffs. E.54 Examine evidence in informational texts to explain the benefits of trade among individuals, regions, and countries. E.55 Define and distinguish between absolute and comparative advantage and explain how most trade occurs because of a comparative advantage in the production of a particular good or service. E.56 Define trade barriers, such as quotas and tariffs. 17 E.57 Why do countries establish trade barriers? E.57 Explain why countries sometimes erect barriers to trade such as quotas and tariffs, or through subsides to domestic producers and the consequences of those trade barriers and subsidies on consumers and producers. 17 E.58 What are the differences between balance of trade and balance of payments? E.58 Explain the difference between balance of trade and balance of payments. (E, G) 9 E.59 Compare and contrast labor productivity trends in the United States and other developed countries. 17 E.60 How do changes in exchange rates impact purchasing power? 17 E.61 Using text, evaluate the arguments for and against free trade. E.59 Compare and contrast labor productivity trends in the United States and other developed countries. E.60 Explain how changes in exchange rates impact the purchasing power of people in the United States and other countries. E.61 Cite evidence from appropriate informational text to evaluate the arguments for and against free trade.

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