Correlation of : New Ways of Thinking to the Arizona Social Studies Standards Home Office 875 Montreal Way St. Paul, MN 55102 800-328-1452 phone 800-328-4564 fax
Concept 1: Foundations of EMC Publishing s : New Ways of Thinking Correlated to ARIZONA SOCIAL STUDIES STANDARDS Strand 5: PO 1. Analyze the implications of scarcity: a. limited resources and unlimited human wants influence choice at individual, national, and international levels b. factors of production (e.g., natural, human, and capital resources, entrepreneurship, technology) c. marginal analysis by producers, consumers, savers, and investors PO 2. Analyze production possibilities curves to describe opportunity costs and trade-offs. PO 3. Describe the characteristics of the mixed-market economy of the United States: a. property rights b. profit motive c. consumer sovereignty d. competition e. role of the government f. rational self-interest g. invisible hand PO 4. Evaluate the economic implications of current events from a variety of sources (e.g., magazine articles, newspaper articles, radio, television reports, editorials, Internet sites). 6, 7, 10-11, 48, 77, 199 6-7, 24-27 25, 27, 45, 71-73, 119, 122, 334 14, 173, 175, 182, 183, 185 10, 11, 331 36-37 57-58, 68, 423, 425 178-179, 63, 65 56-57, 63-65 11, 58, 59, 197 35, 59, 74-81 39-40, 51, 59 40 105, 148-149, 183, 209, 372, 440 2
PO 5. Interpret economic information using charts, tables, graphs, equations, and diagrams. Visuals are inserted throughout the text. Ex: 8, 10, 37, 45, 47, 53, 316, 480-481 Concept 2: Microeconomics PO 1. Describe how the interdependence of both households and firms is affected by trade, exchange, money, and banking: a. why voluntary exchange occurs only when all participating parties expect to gain from the exchange b. role and interdependence of households, firms, and government in the circular flow model of economic activity c. role of entrepreneurs in a market economy and how profit is an incentive that leads entrepreneurs to accept risks of business failure d. financial institutions and securities markets e. importance of rule of law in a market economy for enforcement of contracts PO 2. Describe how markets function: a. laws of supply and demand b. how a market price is determined c. graphs that demonstrate changes in supply and demand d. how price ceilings and floors cause shortages or surpluses e. comparison of monopolistic and competitive behaviors trade 39-40, 44, 49-50, 51, 256-257; exchange 415-419; money 254-269, 325-326; banking 254, 255, 265-269, 317-318 415-419 60-61 27, 69, 71-73, 80 banking 254-265; markets 186-189, 190-210 74-78 186-221 demand 90-91; supply 112-113 190-191, 194-195, 206-207, 211 93, 95, 99, 109, 115, 116, 117, 121, 127 138-139 monopolistic 194-209; competitive 11, 48, 58-59, 161 3
f. theory of production and the role of cost PO 3. Describe how government policies influence the economy: a. need to compare costs and benefits of government policies before taking action b. use of federal, state, and local government spending to provide national defense; address environmental concerns; define and enforce property, consumer and worker rights; regulate markets; and provide goods and services c. effects of progressive, proportional, and regressive taxes on different income groups d. role of self-interest in decisions of voters, elected officials, and public employees production 10-11, 47, 397-399; cost 172-175, 256-260 340-363, 364-387 74-81, 197-198 nat. defense 76, 77, 376; environment 224; property rates 57-58, 68, 423, 425; consumer rates 213-215, 244, 379; workers rates 74-75, 238-247; anti-trust laws 199-203; goods & services 75-78, 197 progressive 370; proportional 370; regressive 370 39-40, 51, 59 Concept 3: Macroeconomics PO 1. Determine how inflation, unemployment, and gross domestic product statistics are used in policy decisions. PO 2. Explain the effects of inflation and deflation on different groups (e.g., borrowers v. lenders, fixed income/cost of living adjustments). PO 3. Describe the economic and non-economic consequences of unemployment. PO 4. Analyze fiscal policy and its effects on inflation, unemployment, and economic growth. PO 5. Describe the functions of the Federal Reserve System (e.g., banking regulation and supervision, financial services, monetary policy) and their influences on the economy. inflation 312-321; unemployment 342-353; GDP 287-300, 324-325 inflation 317-319; deflation 320-322 306-307, 323, 326, 342-344, 351-353, 360-361, 383-384 340-350 254, 255, 263 4
PO 6. Explain the effects of monetary policy on unemployment, inflation, and economic growth. PO 7. Determine how investment in factories, machinery, new technology, and the health, education, and training of people can raise future standards of living. 340-341, 351-353, 357, 360-361 293-294, 445, 449, 453; standard of living 295-296 Concept 4: Global PO 1. Analyze the similarities and differences among economic systems: a. characteristics of market, command, and mixed economic systems, including roles of production, distribution, and consumption of goods and services b. benefits and costs of market and command economies 32-40 30-40 30-40 c. characteristics of the mixed-market economy of the United States, including such concepts as private ownership, profit motive, consumer sovereignty, competition, and government regulation d. role of private property in conserving scarce resources and providing incentives in a market economy PO 2. Describe the effects of international trade on the United States and other nations: a. how people and nations gain through trade b. how the law of comparative advantage leads to specialization and trade c. effects of protectionism, including tariffs and quotas on international trade and on a nation s standard of living d. how exchange rates work and how they affect international trade mixed market econ. 36-37; private ownership 36, 57-58; profits 62; consumer rights 213-215; government regulation 74-78, 199, 238-247 36, 57-58 46-50, 392-427 39-40, 44, 49-51 397-399 tariffs 45, 407-409; quotas 120, 407, 424 415-419 5
e. how the concepts of balance of trade and balance of payments are used to measure international trade f. factors that influence the major world patterns of economic activity including the differing costs of production between developed and developing countries g. economic connections among different regions, including changing alignments in world trade partners h. identify the effects of trade agreements (e.g., North American Free Trade Agreement) balance of trade 396-397; intl. Trade 392-393 imports-exports 394-396; outsourcing 47, 49, 145, 180 balance of trade 396-397; exchange rate 415-419 NAFTA 413; WTO 45, 413; GATT 44 Concept 5: Personal Finance PO 1. Explain how education, career choices, and family obligations affect future income. 124-125, 236-237, 470-473 PO 2. Analyze how advertising influences consumer choices. 44, 345, 379 PO 3. Determine short- and long-term financial goals and plans, including income, spending, saving, and investing. PO 4. Compare the advantages and disadvantages of using various forms of credit and the determinants of credit history. PO 5. Explain the risk, return, and liquidity of short- and long-term saving and investment vehicles. PO 6. Identify investment options, (e.g., stocks, bonds, mutual funds) available to individuals and households. Personal Finance Handbook 461-478 265-266, 268-269 293-294, 445, 449, 453 investments 293-294, 445, 449, 453; stocks 430-431; bonds 442-448; mutual funds 438 6