Economics
Unit 2
Overview
This unit is an economics
overview where students learn the four economic decisions that define economic systems and how they define those systems.
Standard 1: Due to
the condition of scarcity, decisions must be made about the use of scarce resources
A. Economic
choices are made because resources are scarce and that the act of making
economic choices imposes opportunity cost.
B. Economic incentives influence the use of scarce
human capital and natural resources
Standard 2: Different
economic systems employ different means to produce, distribute, and exchange goods and services.
A. Students understand the fundamental characteristics
of the U.S. economic system
Essential Questions
1. How does scarcity influence
how economic decisions are made?
2. How do incentives, opportunity
costs and supply and demand influence economic decision making?
3. How does self interest influence
economic decisions?
4. How are economic systems alike
and how are they different?
5. How does the U.S. government use monetary and fiscal policy to influence
the economy?
6. How do government regulations
influence the economy?
Vocabulary
Economics
traditional economy
Economy
command economy
Voluntary Exchange
market economy
Market
mixed economy
Scarcity
production possibility frontier
Trade off
inside frontier
3 questions about scarcity
capital resources
Opportunity
Cost
price ceiling
Marginal Cost
price floor
Marginal Benefit
marginal utility
Productive Resources
4 pillars of free enterprise
Macroeconomics
Means of production
Microeconomics
1. Human Resources
Law of increasing
opportunity cost
2. Capital Resources
Allocate
3. Natural Resources
Explicit Cost
Circular Flow Model
Implicit Cost
Sunk Cost
