The Fundamental Economic Problem
1. Explain scarcity.
2. Contrast needs and wants.
Making Economic Decisions
3. Describe how trade-offs and opportunity costs are related.
Being an Economically Smart Citizen
4. Explain why it is important to be informed about economic activity.
5. Define rational choice.
1. Identify the factors of production.
2. Demonstrate how the Gross Domestic Product is measured.
Economic Activity and Productivity
3. Define factor markets and product markets.
4. Explain how specialization increases productivity.
Capitalism and Free Enterprise
5. Name the major features of free enterprise.
6. List the freedoms of free enterprise.
The Economy and You
7. Describe the private and federal help available to consumers.
8. Discuss factors that consumers consider when making decisions.
What is Demand
1. Explain a rise or fall in demand.
2. Identify the law of demand.
Factors Affecting Demand
3. Explain what a shift in a demand curve means.
4. Discuss the factors that cause a change in demand.
What is Supply?
1. Explain the law of supply.
Factors Affecting Supply
2. Identify the factors that can change supply.
3. Define supply elasticity.
Markets and Prices
4. Describe how supply and demand work together to determine price.
5. Understand how shortages and surpluses affect price.
Types of Businesses
1. Describe different ways businesses are organized.
2. Compare the advantages and disadvantages of different types of business organizations.
3. Name the different types of unions.
4. Explain how negotiations between unions and management are conducted.
Businesses in Our Economy
5. Define social responsibility.
6. List the responsibilities of businesses to consumers, owners, employees, and their communities.
The Role of Government
1. Identify the public goods that government provides.
2. Describe the actions of the government takes to regulate economic activity.
Measuring the Economy
3. Define real GDP.
4. Explain what the business cycle illustrates.
Government, the Economy, and You
5. Discuss the reasons for income inequality.
What is Money?
1. Describe the functions of money.
2. Explain how the American financial system operates.
The Federal Reserve System
3. Understand how the Federal Reserve System is organized.
4. Discuss the role the Federal Reserve plays in the economy.
How Banks Operate
5. Describe how banks started.
6. Explain how banks operate and make money.
The Federal Government
1. Identify the main sources of federal revenue.
2. Discuss the major types of federal expenditures.
State and Local Governments
3. Name the sources of revenue for state and local governments.
4. List the major expenditures for state and local governments.
Managing the Economy
5. Explain government surpluses and deficits.
International Trade and its Benefits
1. Explain why nations trade.
2. Discuss the way that regional trade agreements work.
3. Describe a market economy.
4. Identify the characteristics of a command economy.
5. Describe a mixed economy.
Economies in Transition
6. Explain why some nations are moving toward a market economic system.
7. Identify the obstacles to economic development.