Updated 1.2017

Issaquah School District Course: SST672 – IB Economics SL Total Framework Hours: 180 CIP Code: 450601 Exploratory Preparatory Date Last Modified: 11/2/2017 Career Cluster: Finance Cluster Pathway: Business Finance Pathway

COMPONENTS AND ASSESSMENTS Performance Assessments:

Microeconomic Objective: Foundations in economics

• Formative Assessment- Opportunity cost team activity • Summative assessment- a mixture of multiple choice, short answer problem based and free write methods which assesses

Microeconomic Objective: Competitive markets:

• Formative Assessment- Construct a personal demand curve • Summative assessment- a mixture of multiple choice, short answer problem based and free write methods.

Microeconomic Objective: Market equilibrium

• Formative assessment- Equilibrium simulation • Summative assessment- a mixture of multiple choice, short answer problem based and free write methods.

Microeconomic Objective: Elasticities

• Formative assessment- Specific company elasticity project • Summative assessment- a mixture of multiple choice, short answer problem based and free write methods.

Microeconomic Objective: Government intervention

• Formative assessment- Current event project on sin taxes • Summative assessment- a mixture of multiple choice, short answer problem based and free write methods.

Microeconomic Objective: Market failure

• Formative assessment- Negative and positive externality presentation

• Summative assessment- a mixture of multiple choice, short answer problem based and free write methods.

Leadership Alignment:

Think Creatively- 1.A.2 Create new and worthwhile ideas (both incremental and radical concepts)- Students will set new company decisions based on elasticity graphical outcomes

Reason Effectively- 2.A.1 Use various types of reasoning (inductive, deductive, etc.) as appropriate to the situation- Students will apply reasoning techniques when assessing input cost proposals

Make Judgments and Decisions- 2.C.2 Analyze and evaluate major alternative points of view- Students will evaluate peer edits on their internal assessments for possible revisions

Access and Evaluate Information- 4.A.1 Access information efficiently (time) and effectively (sources)- Students create graphs from business data that demonstrates various economic principles such as GDP, aggregate demand and supply, income distribution, unemployment, inflation, supply side, fiscal and monetary policy. They then analyze the data and predict future successes or failures of policy decisions.

Manage Goals and Time- 8.A.2 Balance tactical (short-term) and strategic (long-term) goals- Students will set Short Term and Long Term goals to prepare for their presentation of their microeconomic internal assessment.

Standards and Competencies Unit: 1: Microeconomics

Industry Standards and/or Competencies Total Learning Hours for Unit: 40 450601 - IB Economics 1.1A Markets: The nature of markets 1. Outline the meaning of the term market. 1.1B Demand: The law of demand 1. Explain the negative causal relationship between price and quantity demanded. 2. Describe the relationship between an individual consumer’s demand and market demand. 1.1C Demand: The demand curve 1. Explain that a demand curve represents the relationship between the price and the quantity demanded of a product, ceteris paribus. 2. Draw a demand curve. 1.1D Demand: The non-price determinants of demand 1. Explain how factors including changes in income (in the cases of normal and inferior goods), preferences, prices of related goods (in the cases of substitutes and complements) and demographic changes may change demand. 1.1E Demand: Movements along and shifts of the demand curve 1. Distinguish between movements along the demand curve and shifts of the demand curve. 2. Draw diagrams to show the difference between movements along the demand curve and shifts of the demand curve. 1.1F Demand: Linear demand functions, demand schedules and graphs 1. Explain a demand function (equation) of the form Qd = a – bP. 2. Plot a demand curve from a linear function (eg. Qd = 60 – 5P). 3. Identify the slope of the demand curve as the slope of the demand function Qd = a – bP, that is –b (the coefficient of P).

4. Outline why, if the “a” term changes, there will be a shift of the demand curve. 5. Outline how a change in “b” affects the steepness of the demand curve. 1.1G Supply: The law of supply 1. Explain the positive causal relationship between price and quantity supplied. 2. Describe the relationship between an individual producer’s supply and market supply. 1.1H Supply: The supply curve 1. Explain that a supply curve represents the relationship between the price and the quantity supplied of a product, ceteris paribus. 2. Draw a supply curve. 1.1I Supply: The non-price determinants of supply 1. Explain how factors including changes in costs of factors of production (land, labor, capital and entrepreneurship), technology, prices of related goods (joint/competitive supply), expectations, indirect taxes and subsidies and the number of firms in the market can change supply. 1.1J Supply: Movements along and shifts of the supply curve 1. Distinguish between movements along the supply curve and shifts of the supply curve. 2. Draw diagrams to show the difference between movements along the supply curve and shifts of the supply curve. 1.1K Supply: Linear supply functions, equations and graphs 1. Explain a supply function (equation) of the form Qs = c + dP. 2. Plot a supply curve from a linear function (eg, Qs = –30 + 20 P). 3. Identify the slope of the supply curve as the slope of the supply function Qs = c + dP, that is d (the coefficient of P). 4. Outline why, if the “c” term changes, there will be a shift of the supply curve. 5. Outline how a change in “d” affects the steepness of the supply curve. 1.1L Market equilibrium: Equilibrium and changes to equilibrium 1. Explain, using diagrams, how demand and supply interact to produce market equilibrium. 2. Analyze, using diagrams and with reference to excess demand or excess supply, how changes in the determinants of demand and/or supply result in a new market equilibrium. 1.1M Market equilibrium: Calculating and illustrating equilibrium using linear equations 1. Calculate the equilibrium price and equilibrium quantity from linear demand and supply functions. 2. Plot demand and supply curves from linear functions, and identify the equilibrium price and equilibrium quantity. 3. State the quantity of excess demand or excess supply in the above diagrams. 1.1N Role of price mechanism: Resource allocation 1. Explain why scarcity necessitates choices that answer the “What to produce?” question. 2. Explain why choice results in an opportunity cost. 3. Explain, using diagrams, that price has a signaling function and an incentive function, which result in a reallocation of resources when prices change as a result of a change in demand or supply conditions. 1.1O Market efficiency: Consumer surplus 1. Explain the concept of consumer surplus. 2. Identify consumer surplus on a demand and supply diagram. 1.1P Market efficiency: Producer surplus 1. Explain the concept of producer surplus. 2. Identify producer surplus on a demand and supply diagram. 1.1Q Market efficiency: Allocative efficiency 1. Evaluate the view that the best allocation of resources from society’s point of view is at competitive market equilibrium, where social (community) surplus (consumer surplus and producer surplus) is maximized (marginal benefit = marginal cost). 1.2A PED: Price elasticity of demand and its determinants 1. Explain the concept of price elasticity of demand, understanding that it involves responsiveness of quantity demanded to a change in price, along a given demand curve. 2. Calculate PED using the following equation, PED equals percentage change in quantity demanded divided by percentage change in price.

3. State that the PED value is treated as if it were positive although its mathematical value is usually negative. 4. Explain, using diagrams and PED values, the concepts of price elastic demand, price inelastic demand, unit elastic demand, perfectly elastic demand and perfectly inelastic demand. 5. Explain the determinants of PED, including the number and closeness of substitutes, the degree of necessity, time and the proportion of income spent on the good. 6. Calculate PED between two designated points on a demand curve using the PED equation above. 7. Explain why PED varies along a straight line demand curve and is not represented by the slope of the demand curve. 1.2B PED: Applications of price elasticity of demand 1. Examine the role of PED for firms in making decisions regarding price changes and their effect on total revenue. 2. Explain why the PED for many primary commodities is relatively low and the PED for manufactured products is relatively high. 3. Examine the significance of PED for government in relation to indirect taxes. 1.2C XED: Cross price elasticity of demand and its determinants 1. Explain the concept of cross price elasticity of demand, understanding that it involves responsiveness of demand for one good (and hence a shifting demand curve) to a change in the price of another good. 2. Calculate XED using the following equation: XED equals percentage change in quantity demanded of good x divided by percentage change in price of good y. 3. Show that substitute goods have a positive value of XED and complementary goods have a negative value of XED. 4. Explain that the (absolute) value of XED depends on the closeness of the relationship between two goods. 1.2D XED: Applications of cross price elasticity of demand 1. Examine the implications of XED for businesses if prices of substitutes or complements change. 1.2E YED: Income elasticity of demand and its determinants 1. Explain the concept of income elasticity of demand, understanding that it involves responsiveness of demand (and hence a shifting demand curve) to a change in income. 2. Calculate YED using the following equation: YED equals percentage change in quantity demanded divided by percentage change in income. 3. Show that normal goods have a positive value of YED and inferior goods have a negative value of YED. 4. Distinguish, with reference to YED, between necessity (income inelastic) goods and luxury (income elastic) goods. 1.2F YED: Applications of income elasticity of demand 1. Examine the implications for producers and for the economy of a relatively low YED for primary products, a relatively higher YED for manufactured products and an even higher YED for services. 1.2G PES: Price elasticity of supply and its determinants 1. Explain the concept of price elasticity of supply, understanding that it involves responsiveness of quantity supplied to a change in price along a given supply curve. 2. Calculate PES using the following equation: PES equals percentage change in quantity supplied divided by percentage change in price. 3. Explain, using diagrams and PES values, the concepts of elastic supply, inelastic supply, unit elastic supply, perfectly elastic supply and perfectly inelastic supply. 4. Explain the determinants of PES, including time, mobility of factors of production, unused capacity and ability to store stocks. 1.2H PES: Applications of price elasticity of supply 1. Explain why the PES for primary commodities is relatively low and the PES for manufactured products is relatively high. 1.3A Indirect taxes: Specific (fixed amount) taxes and ad valorem (percentage) taxes and their impact on markets 1. Explain why governments impose indirect (excise) taxes. 2. Distinguish between specific and ad valorem taxes. 3. Draw diagrams to show specific and ad valorem taxes, and analyze their impacts on market outcomes. 4. Discuss the consequences of imposing an indirect tax on the stakeholders in a market, including consumers, producers and the government. 1.3B Indirect taxes: Tax incidence and price elasticity of demand and supply 1. Explain, using diagrams, how the incidence of indirect taxes on consumers and firms differs, depending on the price elasticity of demand and on the price elasticity of supply. 2. Plot demand and supply curves for a product from linear functions and then illustrate and/or calculate the effects of the imposition of a specific tax on the

market (on price, quantity, consumer expenditure, producer revenue, government revenue, consumer surplus and producer surplus). 1.3C Subsidies: Impact on markets 1. Explain why governments provide subsidies, and describe examples of subsidies. 2. Draw a diagram to show a subsidy, and analyze the impacts of a subsidy on market outcomes. 3. Discuss the consequences of providing a subsidy on the stakeholders in a market, including consumers, producers and the government. 4. Plot demand and supply curves for a product from linear functions and then illustrate and/or calculate the effects of the provision of a subsidy on the market (on price, quantity, consumer expenditure, producer revenue, government expenditure, consumer surplus and producer surplus). 1.3D Price controls: Price ceilings (maximum prices): rationale, consequences and examples 1. Explain why governments impose price ceilings, and describe examples of price ceilings, including food price controls and rent controls. 2. Draw a diagram to show a price ceiling, and analyze the impacts of a price ceiling on market outcomes. 3. Examine the possible consequences of a price ceiling, including shortages, inefficient resource allocation, welfare impacts, underground parallel markets and non-price rationing mechanisms. 4. Discuss the consequences of imposing a price ceiling on the stakeholders in a market, including consumers, producers and the government. 5. Calculate possible effects from the price ceiling diagram, including the resulting shortage and the change in consumer expenditure (which is equal to the change in firm revenue). 1.3E Price controls: Price floors (minimum prices): rationale, consequences and examples 1. Explain why governments impose price floors, and describe examples of price floors, including price support for agricultural products and minimum wages. 2. Draw a diagram of a price floor, and analyze the impacts of a price floor on market outcomes. 3. Examine the possible consequences of a price floor, including surpluses and government measures to dispose of the surpluses, inefficient resource allocation and welfare impacts. 4. Discuss the consequences of imposing a price floor on the stakeholders in a market, including consumers, producers and the government. 5. Calculate possible effects from the price floor diagram, including the resulting surplus, the change in consumer expenditure, the change in producer revenue, and government expenditure to purchase the surplus. 1.4A The meaning of market failure: Market failure as a failure to allocate resources efficiently 1. Examine the concept of market failure as a failure of the market to achieve allocative efficiency, resulting in an over-allocation of resources (over-provision of a good) or an under-allocation of resources (under-provision of a good). 1.4B Types of market failure: The meaning of externalities 1. Explain the concepts of marginal private benefits (MPB), marginal social benefits (MSB), marginal private costs (MPC) and marginal social costs (MSC). 2. Describe the meaning of externalities as the failure of the market to achieve a social optimum where MSB = MSC. 1.4C Types of market failure: Negative externalities of production and consumption 1. Explain, using diagrams and examples, the concepts of negative externalities of production and consumption, and the welfare loss associated with the production or consumption of a good or service. 2. Explain that demerit goods are goods whose consumption creates external costs. 3. Evaluate, using diagrams, the use of policy responses, including market-based policies (taxation and tradable permits), and government regulations, to the problem of negative externalities of production and consumption. 1.4D Types of market failure: Positive externalities of production and consumption 1. Explain, using diagrams and examples, the concepts of positive externalities of production and consumption, and the welfare loss associated with the production or consumption of a good or service. 2. Explain that merit goods are goods whose consumption creates external benefits. 3. Evaluate, using diagrams, the use of government responses, including subsidies, legislation, advertising to influence behavior, and direct provision of goods and services. 1.4E Types of market failure: Lack of public goods 1. Using the concepts of rivalry and excludability, and providing examples, distinguish between public goods (non-rivalrous and nonexcludable) and private goods (rivalrous and excludable). 2. Explain, with reference to the free rider problem, how the lack of public goods indicates market failure. 3. Discuss the implications of the direct provision of public goods by government.

1.4F Types of market failure: Common access resources and the threat to sustainability 1. Explain, using examples, common access resources. 2. Apply the concept of sustainability to the problem of common access resources. 3. Examine the consequences of the lack of a pricing mechanism for common access resources in terms of goods being overused/ depleted/degraded as a result of activities of producers and consumers who do not pay for the resources that they use, and that this poses a threat to sustainability. 4. Discuss, using negative externalities diagrams, the view that economic activity requiring the use of fossil fuels to satisfy demand poses a threat to sustainability. 5. Discuss the view that the existence of poverty in economically less developed countries creates negative externalities through overexploitation of land for agriculture, and that this poses a threat to sustainability. 6. Evaluate, using diagrams, possible government responses to threats to sustainability, including legislation, carbon taxes, cap and trade schemes, and funding for clean technologies. 7. Explain, using examples, that government responses to threats to sustainability are limited by the global nature of the problems and the lack of ownership of common access resources, and that effective responses require international cooperation. 1.4G Types of market failure: Asymmetric information 1. Explain, using examples, that market failure may occur when one party in an economic transaction (either the buyer or the seller) possesses more information than the other party. 2. Evaluate possible government responses, including legislation, regulation and provision of information. 1.4H Types of market failure: Abuse of monopoly power 1. Explain how monopoly power can create a welfare loss and is therefore a type of market failure. 2. Discuss possible government responses, including legislation, regulation, nationalization and trade liberalization. 1.5A Production and costs: Production in the short run: the law of diminishing returns 1. Distinguish between the short run and long run in the context of production. 2. Define total product, average product and marginal product, and construct diagrams to show their relationship. 3. Explain the law of diminishing returns. 4. Calculate total, average and marginal product from a set of data and/or diagrams. 1.5B Production and costs: Costs of production: economic costs 1. Explain the meaning of economic costs as the opportunity cost of all resources employed by the firm (including entrepreneurship). 2. Distinguish between explicit costs and implicit costs as the two components of economic costs. 1.5C Production and costs: Costs of production in the short run 1. Explain the distinction between the short run and the long run, with reference to fixed factors and variable factors. 2. Distinguish between total costs, marginal costs and average costs. 3. Draw diagrams illustrating the relationship between marginal costs and average costs, and explain the connection with production in the short run. 4. Explain the relationship between the product curves (average product and marginal product) and the cost curves (average variable cost and marginal cost), with reference to the law of diminishing returns. 5. Calculate total fixed costs, total variable costs, total costs, average fixed costs, average variable costs, average total costs and marginal costs from a set of data and/or diagrams. 1.5D Production and costs: Production in the long run: returns to scale 1. Distinguish between increasing returns to scale, decreasing returns to scale and constant returns to scale. 1.5E Production and costs: Costs of production in the long run 1. Explain the relationship between short-run average costs and long-run average costs. 2. Explain, using a diagram, the reason for the shape of the long-run average total cost curve. 3. Explain factors giving rise to economies of scale, including specialization, efficiency, marketing and indivisibilities. 4. Explain factors giving rise to diseconomies of scale, including problems of coordination and communication. 1.5F Revenues: Total revenue, average revenue and marginal revenue 1. Distinguish between total revenue, average revenue and marginal revenue. 2. Draw diagrams illustrating the relationship between total revenue, average revenue and marginal revenue.

3. Calculate total revenue, average revenue and marginal revenue from a set of data and/or diagrams. 1.5G Profit: Economic profit (sometimes known as abnormal profit) and normal profit (zero economic profit occurring at the break-even point) 1. Describe economic profit (abnormal profit) as the case where total revenue exceeds economic cost. 2. Explain the concept of normal profit (zero economic profit) as the amount of revenue needed to cover the costs of employing self-owned resources (implicit costs, including entrepreneurship) or the amount of revenue needed to just keep the firm in business. 3. Explain that economic profit (abnormal profit) is profit over and above normal profit (zero economic profit), and that the firm earns normal profit when economic profit (abnormal profit) is zero. 4. Explain why a firm will continue to operate even when it earns zero economic profit (abnormal profit). 5. Explain the meaning of loss as negative economic profit arising when total revenue is less than total cost. 6. Calculate different profit levels from a set of data and/or diagrams. 1.5H Goals of firms: Profit maximization 1. Explain the goal of profit maximization where the difference between total revenue and total cost is maximized or where marginal revenue equals marginal cost. 1.5I Goals of firms: Alternative goals of firms 1. Explain alternative goals of firms, including revenue maximization, growth maximization, satisficing and corporate social responsibility. 1.5J Perfect competition: Assumptions of the model 1. Describe, using examples, the assumed characteristics of perfect competition: a large number of firms; a homogeneous product; freedom of entry and exit; perfect information; perfect resource mobility. 1.5K Perfect competition: Revenue curves 1. Explain, using a diagram, the shape of the perfectly competitive firm’s average revenue and marginal revenue curves, indicating that the assumptions of perfect competition imply that each firm is a price taker. 2. Explain, using a diagram, that the perfectly competitive firm’s average revenue and marginal revenue curves are derived from market equilibrium for the industry. 1.5L Perfect competition: Profit maximization in the short run 1. Explain, using diagrams, that it is possible for a perfectly competitive firm to make economic profit (abnormal profit), normal profit (zero economic profit) or negative economic profit in the short run based on the marginal cost and marginal revenue profit maximization rule. 1.5M Perfect competition: Profit maximization in the long run 1. Explain, using a diagram, why, in the long run, a perfectly competitive firm will make normal profit (zero economic profit). 2. Explain, using a diagram, how a perfectly competitive market will move from short run equilibrium to long-run equilibrium. 1.5N Perfect competition: Shut-down price and break-even price 1. Distinguish between the short run shut-down price and the break-even price. 2. Explain, using a diagram, when a loss-making firm would shut down in the short run. 3. Explain, using a diagram, when a loss-making firm would shut down and exit the market in the long run. 4. Calculate the short run shutdown price and the break-even price from a set of data. 1.5O Perfect competition: Efficiency 1. Explain the meaning of the term allocative efficiency. 2. Explain that the condition for allocative efficiency is P = MC (or, with externalities, MSB = MSC). 3. Explain, using a diagram, why a perfectly competitive market leads to allocative efficiency in both the short run and the long run. 4. Explain the meaning of the term productive/technical efficiency. 5. Explain that the condition for productive efficiency is that production takes place at minimum average total cost. 6. Explain, using a diagram, why a perfectly competitive firm will be productively efficient in the long run, though not necessarily in the short run. 1.5P Monopoly: Assumptions of the model 1. Describe, using examples, the assumed characteristics of a monopoly: a single or dominant firm in the market; no close substitutes; significant barriers to entry. 1.5Q Monopoly: Barriers to entry 1. Explain, using examples, barriers to entry, including economies of scale, branding and legal barriers.

1.5R Monopoly: Revenue curves 1. Explain that the average revenue curve for a monopolist is the market demand curve, which will be downward sloping. 2. Explain, using a diagram, the relationship between demand, average revenue and marginal revenue in a monopoly. 3. Explain why a monopolist will never choose to operate on the inelastic portion of its average revenue curve. 1.5S Monopoly: Profit maximization 1. Explain, using a diagram, the short- and long-run equilibrium output and pricing decision of a profit maximizing (loss minimizing) monopolist, identifying the firm’s economic profit (abnormal profit), or losses. 2. Examine the role of barriers to entry in permitting the firm to earn economic profit (abnormal profit). 1.5T Monopoly: Revenue maximization 1. Explain, using a diagram, the output and pricing decision of a revenue maximizing monopoly firm. 2. Compare and contrast, using a diagram, the equilibrium positions of a profit maximizing monopoly firm and a revenue maximizing monopoly firm. 3. Calculate from a set of data and/or diagrams the revenue maximizing level of output. 1.5U Monopoly: Natural monopoly 1. With reference to economies of scale, and using examples, explain the meaning of the term “natural monopoly”. 2. Draw a diagram illustrating a natural monopoly. 1.5V Monopoly: Monopoly and efficiency 1. Explain, using diagrams, why the profit maximizing choices of a monopoly firm lead to allocative inefficiency (welfare loss) and productive inefficiency. 2. Evaluate reasons why, despite inefficiencies, a monopoly may be considered desirable for a variety of reasons, including the ability to finance research and development (R&D) from economic profits, the need to innovate to maintain economic profit (abnormal profit), and the possibility of economies of scale. 1.5W Monopoly: Policies to regulate monopoly power 1. Evaluate the role of legislation and regulation in reducing monopoly power. 1.5X Monopoly: The advantages and disadvantages of monopoly compared with perfect competition 1. Draw diagrams and use them to compare and contrast a monopoly market with a perfectly competitive market, with reference to factors including efficiency, price and output, research and development (R&D) and economies of scale. 1.5Y Monopolistic competition: Assumptions of the model 1. Describe, using examples, the assumed characteristics of a monopolistic competition: a large number of firms; differentiated products; absence of barriers to entry and exit. 1.5Z Monopolistic competition: Revenue curves 1. Explain that product differentiation leads to a small degree of monopoly power and therefore to a negatively sloping demand curve for the product. 1.5ZA Monopolistic competition: Profit maximization in the short run 1. Explain, using a diagram, the short-run equilibrium output and pricing decisions of a profit maximizing (loss minimizing) firm in monopolistic competition, identifying the firm’s economic profit (or loss). 1.5ZB Monopolistic competition: Profit maximization in the long run 1. Explain, using diagrams, why in the long run a firm in monopolistic competition will make normal profit. 1.5ZC Monopolistic competition: Non-price competition 1. Distinguish between price competition and non-price competition. 2. Describe examples of nonprice competition, including advertising, packaging, product development and quality of service. 1.5ZD Monopolistic competition: Monopolistic competition and efficiency 1. Explain, using a diagram, why neither allocative efficiency nor productive efficiency are achieved by monopolistically competitive firms. 1.5ZE Monopolistic competition: Monopolistic competition compared with perfect competition and monopoly 1. Compare and contrast, using diagrams, monopolistic competition with perfect competition, and monopolistic competition with monopoly, with reference to factors including short run, long run, market power, allocative and productive efficiency, number of producers, economies of scale, ease of entry and exit, size of firms and product differentiation. 1.5ZF Oligopoly: Assumptions of the model 1. Describe, using examples, the assumed characteristics of an oligopoly: the dominance of the industry by a small number of firms; the importance of interdependence; differentiated or homogeneous products; high barriers to entry.

2. Discuss the role of interdependence in the dilemma faced by oligopolistic firms—whether to compete or to collude. 3. Explain how a concentration ratio may be used to identify an oligopoly. 1.5ZG Oligopoly: Game theory 1. Explain how game theory (the simple prisoner’s dilemma) can illustrate strategic interdependence and the options available to oligopolies. 1.5ZH Oligopoly: Open/formal collusion 1. Explain the term “collusion”, give examples, and state that it is usually (in most countries) illegal. 2. Explain the term “collusion”, give examples, and state that it is usually (in most countries) illegal. 3. Explain that the primary goal of a cartel is to limit competition between member firms and to maximize joint profits as if the firms were collectively a monopoly. 4. Explain the incentive of cartel members to cheat. 5. Examine the conditions that make cartel structures difficult to maintain. 1.5ZI Oligopoly: Tacit/informal collusion 1. Explain the term “tacit collusion”, including reference to price leadership by a dominant firm. 1.5ZJ Oligopoly: Non-collusive oligopoly 1. Explain that the behavior of firms in a non-collusive oligopoly is strategic in order to take account of possible actions by rivals. 2. Explain, using a diagram, the existence of price rigidities, with reference to the kinked demand curve. 3. Explain why non-price competition is common in oligopolistic markets, with reference to the risk of price wars. 4. Describe, using examples, types of non-price competition. 1.5ZK: Price discrimination: Necessary conditions for the practice of price discrimination 1. Describe price discrimination as the practice of charging different prices to different consumer groups for the same product, where the price difference is not justified by differences in cost. 2. Explain that price discrimination may only take place if all of the following conditions exist: the firm must possess some degree of market power; there must be groups of consumers with differing price elasticities of demand for the product; the firm must be able to separate groups to ensure that no resale of the product occurs. 3. Draw a diagram to illustrate how a firm maximizes profit in third degree price discrimination, explaining why the higher price is set in the market with the relatively more inelastic demand. Aligned Washington State Learning Standards Arts Level 3A (grades 9-10) Concept I- Impacts of Computing Computer Science 3A-I-7-24 Discuss implications of the collection and large-scale analysis of information about individuals (e.g., how businesses, social media, and government collect and use personal data). 1.1-Innovate: Demonstrate creative thinking, construct knowledge and develop innovative products and processes using technology. 1.1.1-Generate ideas and create original works for personal and group expression using a variety of digital tools. 1.1.2-Use models and simulations to explore systems, identify trends and forecast possibilities. 1.2-Collaborate: Use digital media and environments to communicate and work collaboratively to support individual learning and contribute to the learning of others. 1.2.1-Communicate and collaborate to learn with others. 1.3-Investigate and Think Critically: Research, manage and evaluate information and solve problems. Educational Technology 1.3.1-Identify and define authentic problems and significant questions for investigation and plan strategies to guide inquiry. 1.3.2-Locate and organize information from a variety of sources and media. 1.3.3-Analyze, synthesize and ethically use information to develop a solution, make informed decisions and report results. 2.1-Practice Safety: Demonstrate safe, legal and ethical behavior in the use of information and technology. 2.1.2-Practice ethical and respectful behavior. 2.3-Select and Use Applications: Use productivity tools and common applications effectively and constructively. 2.3.1-Select and use common applications. 2.3.2-Select and use online applications.

College and Career Readiness Anchor Standards for Language 1. Demonstrate command of the conventions of standard English grammar and usage when writing or speaking. (Conventions of Standard English) 2. Demonstrate command of the conventions of standard English capitalization, punctuation, and spelling when writing. (Conventions of Standard English) 6. Acquire and use accurately a range of general academic and domain-specific words and phrases sufficient for reading, writing, speaking, and listening at the college and career readiness level; demonstrate independence in gathering vocabulary knowledge when considering a word or phrase important to comprehension or expression. (Vocabulary Acquisition and Use) College and Career Readiness Anchor Standards for Reading CCR 01. Read closely to determine what the text says explicitly and to make logical inferences from it; cite specific textual evidence when writing or speaking to support conclusions drawn from the text. (Key Ideas and Details) CCR 02. Determine central ideas or themes of a text and analyze their development; summarize the key supporting details and ideas. (Key Ideas and Details) CCR 03. Analyze how and why individuals, events, and ideas develop and interact over the course of a text. (Key Ideas and Details) CCR 04. Interpret words and phrases as they are used in a text, including determining technical, connotative, and figurative meanings, and analyze how specific word choices shape meaning or tone.(Craft and Structure) CCR 08. Delineate and evaluate the argument and specific claims in a text, including the validity of the reasoning as well as the relevance and sufficiency of the evidence. (Integration of Knowledge and Ideas) CCR 10. Read and comprehend complex literary and informational texts independently and proficiently. (Range of Reading and Level of Complexity) College and Career Readiness Anchor Standards for Speaking and Listening English Language Arts CCR 01. Prepare for and participate effectively in a range of conversations and collaborations with diverse partners, building on others’ ideas and expressing their own clearly and persuasively. (Comprehension and Collaboration) CCR 04. Present information, findings, and supporting evidence such that listeners can follow the line of reasoning and the organization, development, and style are appropriate to task, purpose, and audience. (Presentation of Knowledge and Ideas) CCR 05. Make strategic use of digital media and visual displays of data to express information and enhance understanding of presentations. (Presentation of Knowledge and Ideas) College and Career Readiness Anchor Standards for Writing CCR 01 Write arguments to support claims in an analysis of substantive topics or texts using valid reasoning and relevant and sufficient evidence. (Text Types and Purposes) CCR 02 Write informative/explanatory texts to examine and convey complex ideas and information clearly and accurately through the effective selection, organization, and analysis of content. (Text Types and Purposes) CCR 04 Produce clear and coherent writing in which the development, organization, and style are appropriate to task, purpose, and audience. (Production and Distribution of Writing) CCR 06 Use technology, including the Internet, to produce and publish writing and to interact and collaborate with others. (Production and Distribution of Writing) CCR 07 Conduct short as well as more sustained research projects based on focused questions, demonstrating understanding of the subject under investigation. (Research to Build and Present Knowledge) CCR 08 Gather relevant information from multiple print and digital sources, assess the credibility and accuracy of each source, and integrate the information while avoiding plagiarism. (Research to Build and Present Knowledge) CCR 09 Draw evidence from literary or informational texts to support analysis, reflection, and research. (Research to Build and Present Knowledge) CCR 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. (Range of Writing) Science and Technology Literacy Standards (Grades 11-12) RST.11-12.1 Cite specific textual evidence to support analysis of science and technical texts, attending to important distinctions the author makes and to any gaps or inconsistencies in the account. RST.11-12.2 Determine the central ideas or conclusions of a text; summarize complex concepts, processes, or information presented in a text by paraphrasing them in simpler but still accurate terms. RST.11-12.3 Follow precisely a complex multistep procedure when carrying out experiments, taking measurements, or performing technical tasks; analyze the specific results based on explanations in the text. RST.11-12.4 Determine the meaning of symbols, key terms, and other domain-specific words and phrases as they are used in a specific scientific or technical context relevant to grades 11-12 texts and topics. RST.11-12.7 Integrate and evaluate multiple sources of information presented in diverse formats and media (e.g., quantitative data, video, multimedia) in order to address a question or solve a problem. RST.11-12.9 Synthesize information from a range of sources (e.g., texts, experiments, simulations) into a coherent understanding of a process, phenomenon, or concept, resolving conflicting information when possible. Standard 1: Ecological, Social and Economic Systems Students develop knowledge of the interconnections and interdependency of ecological, social, and economic systems. Environment & Sustainability They demonstrate understanding of how the health of these systems determines the sustainability of natural and human communities at local, regional, national, and global levels. Financial Education Health and Physical Education Building Functions CC.9-12.F.BF.1b Combine standard function types using arithmetic operations. CC.9-12.F.BF.2 Build a function that models a relationship between two quantities. Write arithmetic and geometric sequences both recursively and with an explicit formula, use them to model situations, and translate between the two forms. Mathematics | Standards for Mathematical Practice Practice 1: Make sense of problems and persevere in solving them. Practice 3: Construct viable arguments and critique the reasoning of others. Practice 5: Use appropriate tools strategically. Mathematics Practice 6: Attend to precision. Quantities CC.9-12.N.Q.1 Use units as a way to understand problems and to guide the solution of multi-step problems; choose and interpret units consistently in formulas; choose and interpret the scale and the origin in graphs and data displays. CC.9-12.N.Q.3 Choose a level of accuracy appropriate to limitations on measurement when reporting quantities. Reasoning with Equations and Inequalities CC.9-12.A.REI.10 Understand that the graph of an equation in two variables is the set of all its solutions plotted in the coordinate plane, often forming a curve (which could be a line). Science - Next Generation - High School HS-ESS3 Earth and Human Activity. HS-ESS3-1. Construct an explanation based on evidence for how the availability of natural resources, occurrence of natural hazards, and changes in climate have influenced human activity. HS-ESS3-4. Evaluate or refine a technological solution that reduces impacts of human activities on natural systems.* Science HS-ETS1 Engineering Design HS-ETS1-1. Analyze a major global challenge to specify qualitative and quantitative criteria and constraints for solutions that account for societal needs and wants. HS-ETS1-3. Evaluate a solution to a complex real-world problem based on prioritized criteria and trade-offs that account for a range of constraints, including cost, safety, reliability, and aesthetics, as well as possible social, cultural, and

environmental impacts. Science - Next Generation Standards (High School Science and Engineering Practices) Analyzing and Interpreting Data Analyze data using tools, technologies, and/or models (e.g., computational, mathematical) in order to make valid and reliable scientific claims or determine an optimal design solution. Evaluate the impact of new data on a working explanation and/or model of a proposed process or system. Asking Questions and Defining Problems Ask Questions that arise from careful observation of phenomena, or unexpected results, to clarify and/or seek additional information. Ask Questions that arise from examining models or a theory, to clarify and/or seek additional information and relationships. Ask Questions to clarify and refine a model, an explanation, or an engineering problem. Constructing Explanations and designing Solutions Apply scientific ideas, principles, and/or evidence to provide an explanation of phenomena and solve design problems, taking into account possible unanticipated effects. Apply scientific reasoning, theory, and/or models to link evidence to the claims to assess the extent to which the reasoning and data support the explanation or conclusion. Construct and revise an explanation based on valid and reliable evidence obtained from a variety of sources (including students’ own investigations, models, theories, simulations, peer review) and the assumption that theories and laws that describe the natural world operate today as they did in the past and will continue to do so in the future. Developing and Using Models Develop a complex model that allows for manipulation and testing of a proposed process or system. Develop and/or use a model (including mathematical and computational) to generate data to support explanations, predict phenomena, analyze systems, and/or solve problems. Develop and/or use multiple types of models to provide mechanistic accounts and/or predict phenomena, and move flexibly between model types based on merits and limitations. Develop, revise, and/or use a model based on evidence to illustrate and/or predict the relationships between systems or between components of a system. Engaging in Argument from Evidence Compare and evaluate competing arguments or design solutions in light of currently accepted explanations, new evidence, limitations (e.g., trade-offs), constraints, and ethical issues. Construct, use, and/or present an oral and written argument or counter-arguments based on data and evidence. Evaluate competing design solutions to a real-world problem based on scientific ideas and principles, empirical evidence, and/or logical arguments regarding relevant factors (e.g. economic, societal, environmental, ethical considerations). Evaluate the claims, evidence, and/or reasoning behind currently accepted explanations or solutions to determine the merits of arguments. Evaluate a question to determine if it is testable and relevant. Ask and/or evaluate questions that challenge the premise(s) of an argument, the interpretation of a data set, or the suitability of a design Obtaining, Evaluating, and Communicating Information Communicate scientific and/or technical information or ideas (e.g. about phenomena and/or the process of development and the design and performance of a proposed process or system) in multiple formats (including orally, graphically, textually, and mathematically). Compare, integrate and evaluate sources of information presented in different media or formats (e.g., visually, quantitatively) as well as in words in order to address a scientific question or solve a problem. Critically read scientific literature adapted for classroom use to determine the central ideas or conclusions and/or to obtain scientific and/or technical information to summarize complex evidence, concepts, processes, or information presented in a

text by paraphrasing them in simpler but still accurate terms. Gather, read, and evaluate scientific and/or technical information from multiple authoritative sources, assessing the evidence and usefulness of each source. Planning and Carrying Out Investigations Manipulate variables and collect data about a complex model of a proposed process or system to identify failure points or improve performance relative to criteria for success or other variables. Plan an investigation or test a design individually and collaboratively to produce data to serve as the basis for evidence as part of building and revising models, supporting explanations for phenomena, or testing solutions to problems. Consider possible confounding variables or effects and evaluate the investigation’s design to ensure variables are controlled. Using Mathematics and Computational Thinking Use mathematical, computational, and/or algorithmic representations of phenomena or design solutions to describe and/or support claims and/or explanations. Grade 11 GLE Standards 1. CIVICS The student understands and applies knowledge of government, law, politics, and the nation's fundamental documents to make decisions about local, national, and international issues and to demonstrate thoughtful, participatory citizenship. 1.1 Understands key ideals and principles of the United States, including those in the Declaration of Independence, the Constitution, and other fundamental documents. 1.2 Understands the purposes, organization, and function of governments, laws, and political systems. 1.3 Understands the purposes and organization of international relationships and U.S. foreign policy. 2. ECONOMICS The student applies understanding of economic concepts and systems to analyze decision-making and the interactions between individuals, households, businesses, governments, and societies. 2.1 Understands that people have to make choices between wants and needs and evaluate the outcomes of those choices. 2.2 Understands how economic systems function. Social Studies 2.3 Understands the government's role in the economy. 2.4 Understands the economic issues and problems that all societies face. 3. GEOGRAPHY The student uses a spatial perspective to make reasoned decisions by applying the concepts of location, region, and movement and demonstrating knowledge of how geographic features and human cultures impact environments. 3.2 Understands human interaction with the environment. 4. HISTORY The student understands and applies knowledge of historical thinking, chronology, eras, turning points, major ideas, individuals, and themes in local, Washington State, tribal, United States, and world history in order to evaluate how history s 4.2 Understands and analyzes causal factors that have shaped major events in history. 5. SOCIAL STUDIES SKILLS The student understands and applies reasoning skills to conduct research, deliberate, form, and evaluate positions through the processes of reading, writing, and communicating. 5.1 Uses critical reasoning skills to analyze and evaluate positions. 5.3 Deliberates public issues.

COMPONENTS AND ASSESSMENTS Performance Assessments:

Macroeconomic objective: Measuring national economic performance

• Formative assessment- Bureau of Economics investigation project

• Summative assessment- written test utilizing a mixture of multiple choice, short answer problem based and free write methods.

Macroeconomic objective: Aggregate demand and supply

• Formative assessment- Historical investigation on stagflation, inflation and deflation gaps • Summative assessment- test utilizing a mixture of multiple choice, short answer problem based and free write methods.

Macroeconomic objective: Understanding unemployment

• Formative assessment- National unemployment historical graph project • Summative assessment- test utilizing a mixture of multiple choice, short answer problem based and free write methods.

Macroeconomic objective: Understanding low inflation

• Formatively assessment- Graphing historical inflation project • Summative assessment- test utilizing a mixture of multiple choice, short answer problem based and free write methods.

Macroeconomic objective: Understanding economic growth

• Formative assessment- Causes of economic growth CIA fact book exploration • Summative assessment- Test utilizing a mixture of multiple choice, short answer problem based and free write methods.

Macroeconomic objective: Understanding equity in income distribution

• Formative assessment- Analysis of poverty statistics project • Summative assessment- Test utilizing a mixture of multiple choice, short answer problem based and free write methods.

Macroeconomic objective: Fiscal policy

• Formative assessment- Evaluation of US budget proposal investigation • Summative assessment- test utilizing a mixture of multiple choice, short answer problem based and free write methods.

Macroeconomic objective: Monetary policy

• Formative assessment- Federal Reserve Bank website scavenger hunt • Summative assessment- Test utilizing a mixture of multiple choice, short answer problem based and free write methods.

Macroeconomic objective: Supply side policies

• Formative assessment- Business tax cut article presentation • Summative assessment- Test utilizing a mixture of multiple choice, short answer problem based and free write methods.

Leadership Alignment:

Think Creatively- 1.A.2 Create new and worthwhile ideas (both incremental and radical concepts)- Students will set new economic policy based on graphical outcomes

Work Creatively with Others- 1.B.1 Develop, implement and communicate new ideas to others effectively- Students will work together to establish and implement each other’s views on policy decisions

Reason Effectively- 2.A.1 Use various types of reasoning (inductive, deductive, etc.) as appropriate to the situation- Students will apply reasoning techniques when assessing fiscal policy proposals

Make Judgments and Decisions- 2.C.2 Analyze and evaluate major alternative points of view- Students will evaluate peer edits on their internal assessments for possible revisions

Communicate Clearly- 3.A.3 Use communication for a range of purposes (e.g. to inform, instruct, motivate and persuade)- Students will provide written and verbal feedback on free write IB exam questions and internal assessments

Access and Evaluate Information- 4.A.1 Access information efficiently (time) and effectively (sources)- Students create graphs from business data that demonstrates various economic principles such as GDP, aggregate demand and supply, income distribution, unemployment, inflation, supply side, fiscal and monetary policy. They then analyze the data and predict future successes or failures of policy decisions.

Apply Technology Effectively- 6.A.1 Use technology as a tool to research, organize, evaluate and communicate information- Students will use graphing software to communicate information

Manage Goals and Time- 8.A.2 Balance tactical (short-term) and strategic (long-term) goals- Students will set ST and LT goals to prepare for their presentation of their macroeconomic internal assessment

Guide and Lead Others- 11.A.3 Inspire others to reach their very best via example and selflessness- Students will peer edit free response practice IB exam questions

Standards and Competencies Unit: 2: Macroeconomics

Industry Standards and/or Competencies Total Learning Hours for Unit: 50 450601 - IB Economics 2.1A Economic activity: The circular flow of income model 1. Explain, using a diagram, the circular flow of income between households and firms in a closed economy with no government. 2. Identify the four factors of production and their respective payments (rent, wages, interest and profit) and explain that these constitute the income flow in the model. 3. Outline that the income flow is numerically equivalent to the expenditure flow and the value of output flow. 4. Explain, using a diagram, the circular flow of income in an open economy with government and financial markets, referring to leakages/ withdrawals (savings, taxes and import expenditure) and injections (investment, government expenditure and export revenue). 5. Explain how the size of the circular flow will change depending on the relative size of injections and leakages. 2.1B Economic activity: Measures of economic activity: gross domestic product (GDP), and gross national product (GNP) or gross national income (GNI)

1. Distinguish between GDP and GNP/GNI as measures of economic activity. 2. Distinguish between the nominal value of GDP and GNP/GNI and the real value of GDP and GNP/GNI. 3. Distinguish between total GDP and GNP/GNI and per capita GDP and GNP/GNI. 4. Examine the output approach, the income approach and the expenditure approach when measuring national income. 5. Evaluate the use of national income statistics, including their use for making comparisons over time, their use for making comparisons between countries and their use for making conclusions about standards of living. 6. Explain the meaning and significance of “green GDP”, a measure of GDP that accounts for environmental destruction. 7. Calculate nominal GDP from sets of national income data, using the expenditure approach. 8. Calculate nominal GDP from sets of national income data, using the expenditure approach. 9. Calculate GNP/GNI from data. 10. Calculate real GDP, using a price deflator. 2.1C The business cycle: Short-term fluctuations and long-term trend 1. Explain, using a business cycle diagram, that economies typically tend to go through a cyclical pattern characterized by the phases of the business cycle. 2. Explain the long-term growth trend in the business cycle diagram as the potential output of the economy. 3. Distinguish between a decrease in GDP and a decrease in GDP growth. 2.2A Aggregate demand (AD): The AD curve 1. Distinguish between the microeconomic concept of demand for a product and the macroeconomic concept of aggregate demand. 2. Construct an aggregate demand curve. 3. Explain why the AD curve has a negative slope. 2.2B Aggregate demand (AD): The components of AD 1. Describe consumption, investment, government spending and net exports as the components of aggregate demand. 2.2C Aggregate demand (AD): The determinants of AD or causes of shifts in the AD curve 1. Explain how the AD curve can be shifted by changes in consumption due to factors including changes in consumer confidence, interest rates, wealth, personal income taxes (and hence disposable income) and level of household indebtedness. 2. Explain how the AD curve can be shifted by changes in investment due to factors including interest rates, business confidence, technology, business taxes and the level of corporate indebtedness. 3. Explain how the AD curve can be shifted by changes in government spending due to factors including political and economic priorities. 4. Explain how the AD curve can be shifted by changes in net exports due to factors including the income of trading partners, exchange rates and changes in the level of protectionism. 2.2D Aggregate supply (AS): The meaning of aggregate supply 1. Define the term aggregate supply. 2. Explain, using a diagram, why the short-run aggregate supply curve (SRAS curve) is upward sloping. 3. Explain, using a diagram, how the AS curve in the short run (SRAS) can shift due to factors including changes in resource prices, changes in business taxes and subsidies and supply shocks. 2.2E Aggregate supply (AS): Alternative views of aggregate supply 1. Explain, using a diagram, that the monetarist/new classical model of the long run aggregate supply curve (LRAS) is vertical at the level of potential output (full employment output) because aggregate supply in the long run is independent of the price level. 2. Explain, using a diagram, that the Keynesian model of the aggregate supply curve has three sections because of “wage/price” downward inflexibility and different levels of spare capacity in the economy. 2.2F Aggregate supply (AS): Shifting the aggregate supply curve over the long term 1. Compare and contrast, using the two models above, the ways that factors leading to changes in the quantity and/or quality of factors of production (including improvements in efficiency, new technology, reductions in unemployment, and institutional changes) can shift the aggregate supply curve over the long term. 2.2G Equilibrium: Short-run equilibrium 1. Explain, using a diagram, the determination of short-run equilibrium, using the SRAS curve. 2. Examine, using diagrams, the impacts of changes in short-run equilibrium. 2.2H Equilibrium: Equilibrium in the monetarist/new classical model

1. Explain, using a diagram, the determination of long-run equilibrium, indicating that long-run equilibrium occurs at the full employment level of output. 2. Examine why, in the monetarist/new classical approach, while there may be short-term fluctuations in output, the economy will always return to the full employment level of output in the long run. 3. Examine, using diagrams, the impacts of changes in the long-run equilibrium. 2.2I Equilibrium: Equilibrium in the Keynesian model 1. Explain, using the Keynesian AD/AS diagram, that the economy may be in equilibrium at any level of real output where AD intersects AS. 2. Explain, using a diagram, that if the economy is in equilibrium at a level of real output below the full employment level of output, then there is a deflationary (recessionary) gap. 3. Discuss why, in contrast to the monetarist/new classical model, the economy can remain stuck in a deflationary (recessionary) gap in the Keynesian model. 4. Explain, using a diagram, that if AD increases in the vertical section of the AS curve, then there is an inflationary gap. 5. Discuss why, in contrast to the monetarist/new classical model, increases in aggregate demand in the Keynesian AD/AS model need not be inflationary, unless the economy is operating close to, or at, the level of full employment. 2.2J The Keynesian multiplier: The nature of the Keynesian multiplier 1. Explain, with reference to the concepts of leakages (withdrawals) and injections, the nature and importance of the Keynesian multiplier. 2. Calculate the multiplier using either of the following formulae: 1 divided by (1 - MPC) or 1 divided by (MPS + MPT + MPM). 3. Use the multiplier to calculate the effect on GDP of a change in an injection in investment, government spending or exports. 4. Draw a Keynesian AD/AS diagram to show the impact of the multiplier. 2.3A Low unemployment: The meaning of unemployment 1. Define the term unemployment. 2. Explain how the unemployment rate is calculated. 3. Explain the difficulties in measuring unemployment, including the existence of hidden unemployment, the existence of underemployment, and the fact that it is an average and therefore ignores regional, ethnic, age and gender disparities. 4. Calculate the unemployment rate from a set of data. 2.3B Low unemployment: Consequences of unemployment 1. Discuss possible economic consequences of unemployment, including a loss of GDP, loss of tax revenue, increased cost of unemployment benefits, loss of income for individuals, and greater disparities in the distribution of income. 2. Discuss possible personal and social consequences of unemployment, including increased crime rates, increased stress levels, increased indebtedness, homelessness and family breakdown. 2.3C Low unemployment: Types and causes of unemployment 1. Describe, using examples, the meaning of frictional, structural, seasonal and cyclical (demand-deficient) unemployment. 2. Distinguish between the causes of frictional, structural, seasonal and cyclical (demand-deficient) unemployment. 3. Explain, using a diagram, that cyclical unemployment is caused by a fall in aggregate demand. 4. Explain, using a diagram, that structural unemployment is caused by changes in the demand for particular labor skills, changes in the geographical location of industries, and labor market rigidities. 5. Evaluate government policies to deal with the different types of unemployment. 2.3D Low and stable rate of inflation: The meaning of inflation, disinflation and deflation 1. Distinguish between inflation, disinflation and deflation. 2. Explain that inflation and deflation are typically measured by calculating a consumer price index (CPI), which measures the change in prices of a basket of goods and services consumed by the average household. 3. Explain that different income earners may experience a different rate of inflation when their pattern of consumption is not accurately reflected by the CPI. 4. Explain that inflation figures may not accurately reflect changes in consumption patterns and the quality of the products purchased. 5. Explain that economists measure a core/underlying rate of inflation to eliminate the effect of sudden swings in the prices of food and oil, for example. 6. Explain that a producer price index measuring changes in the prices of factors of production may be useful in predicting future inflation. 7. Construct a weighted price index, using a set of data provided. 8. Calculate the inflation rate from a set of data. 2.3E Low and stable rate of inflation: Consequences of inflation

1. Discuss the possible consequences of a high inflation rate, including greater uncertainty, redistributive effects, less saving, and the damage to export competitiveness. 2.3F Low and stable rate of inflation: Consequences of deflation 1. Discuss the possible consequences of deflation, including high levels of cyclical unemployment and bankruptcies. 2.3G Low and stable rate of inflation: Types and causes of inflation 1. Explain, using a diagram, that demand-pull inflation is caused by changes in the determinants of AD, resulting in an increase in AD. 2. Explain, using a diagram, that cost-push inflation is caused by an increase in the costs of factors of production, resulting in a decrease in SRAS. 3. Evaluate government policies to deal with the different types of inflation. 2.3H Low and stable rate of inflation: Possible relationships between unemployment and inflation 1. Discuss, using a short-run Phillips curve diagram, the view that there is a possible trade-off between the unemployment rate and the inflation rate in the short run. 2. Explain, using a diagram, that the short-run Phillips curve may shift outwards, resulting in stagflation (caused by a decrease in SRAS due to factors including supply shocks). 3. Discuss, using a diagram, the view that there is a long run Phillips curve that is vertical at the natural rate of unemployment and therefore there is no trade-off between the unemployment rate and the inflation rate in the long run. 4. Discuss, using a diagram, the view that there is a long run Phillips curve that is vertical at the natural rate of unemployment and therefore there is no trade-off between the unemployment rate and the inflation rate in the long run. 2.3I Economic growth: The meaning of economic growth 1. Define economic growth as an increase in real GDP. 2. Calculate the rate of economic growth from a set of data. 2.3J Economic growth: Causes of economic growth 1. Explain, using a production possibilities curve (PPC) diagram, economic growth as an increase in actual output resulting from factors such as the utilization of unemployed resources and increases in productive efficiency, leading to a movement of a point inside the PPC to a point closer to the PPC. 2. Explain, using a PPC diagram, economic growth as an increase in production possibilities caused by factors including increases in the quantity and quality of resources, leading to outward PPC shifts. 3. Explain, using an LRAS diagram, economic growth as an increase in potential output caused by factors including increases in the quantity and quality of resources, leading to a rightward shift of the LRAS curve. 4. Evaluate the view that increased investment is essential to achieve economic growth. 5. Evaluate the view that improved productivity is essential to achieve economic growth. 2.3K Economic growth: Consequences of economic growth 1. Discuss the possible consequences of economic growth, including the possible impacts on living standards, unemployment, inflation, the distribution of income, the current account of the balance of payments, and sustainability. 2.3L Equity in the distribution of income: The meaning of equity in the distribution of income 1. Explain the difference between equity in the distribution of income and equality in the distribution of income. 2. Explain that due to unequal ownership of factors of production, the market system may not result in an equitable distribution of income. 2.3M Equity in the distribution of income: Indicators of income equality/inequality 1. Analyze data on relative income shares of given percentages of the population, including deciles and quintiles. 2. Draw a Lorenz curve and explain its significance. 3. Explain how the Gini coefficient is derived and interpreted. 2.3N Equity in the distribution of income: Poverty 1. Distinguish between absolute poverty and relative poverty. 2. Explain possible causes of poverty, including low incomes, unemployment and lack of human capital. 3. Explain possible consequences of poverty, including low living standards, and lack of access to health care and education. 2.3O Equity in the distribution of income: The role of taxation in promoting equity 1. Distinguish between direct and indirect taxes, providing examples of each, and explain that direct taxes may be used as a mechanism to redistribute income. 2. Distinguish between progressive, regressive and proportional taxation, providing examples of each.

3. Calculate the marginal rate of tax and the average rate of tax from a set of data. 2.3P Equity in the distribution of income: Other measures to promote equity 1. Explain that governments undertake expenditures to provide directly, or to subsidize, a variety of socially desirable goods and services (including health care services, education, and infrastructure that includes sanitation and clean water supplies), thereby making them available to those on low incomes. 2. Explain the term transfer payments, and provide examples, including old age pensions, unemployment benefits and child allowances. 2.3Q Equity in the distribution of income: The relationship between equity and efficiency 1. Evaluate government policies to promote equity (taxation, government expenditure and transfer payments) in terms of their potential positive or negative effects on efficiency in the allocation of resources. 2.4A The government budget: Sources of government revenue 1. Explain that the government earns revenue primarily from taxes (direct and indirect), as well as from the sale of goods and services and the sale of state- owned (government-owned) enterprises. 2.4B The government budget: Types of government expenditures 1. Explain that government spending can be classified into current expenditures, capital expenditures and transfer payments, providing examples of each. 2.4C The government budget: The budget outcome 1. Distinguish between a budget deficit, a budget surplus and a balanced budget. 2. Explain the relationship between budget deficits/ surpluses and the public (government) debt. 2.4D The role of fiscal policy: Fiscal policy and short-term demand management 1. Explain how changes in the level of government expenditure and/or taxes can influence the level of aggregate demand in an economy. 2. Explain the mechanism through which expansionary fiscal policy can help an economy close a deflationary (recessionary) gap. 3. Construct a diagram to show the potential effects of expansionary fiscal policy, outlining the importance of the shape of the aggregate supply curve. 4. Explain the mechanism through which contractionary fiscal policy can help an economy close an inflationary gap. 5. Construct a diagram to show the potential effects of contractionary fiscal policy, outlining the importance of the shape of the aggregate supply curve. 2.4E The role of fiscal policy: The impact of automatic stabilizers 1. Explain how factors including the progressive tax system and unemployment benefits, which are influenced by the level of economic activity and national income, automatically help stabilize short-term fluctuations. 2.4F The role of fiscal policy: Fiscal policy and its impact on potential output 1. Evaluate the view that fiscal policy can be used to promote long-term economic growth (increases in potential output) indirectly by creating an economic environment that is favorable to private investment, and directly through government spending on physical capital goods and human capital formation, as well as provision of incentives for firms to invest. 2.4G The role of fiscal policy: Evaluation of fiscal policy 1. Evaluate the effectiveness of fiscal policy through consideration of factors including the ability to target sectors of the economy, the direct impact on aggregate demand, the effectiveness of promoting economic activity in a recession, time lags, political constraints, crowding out, and the inability to deal with supply-side causes of instability. 2.5A Interest rates: Interest rate determination and the role of a central bank 1. Describe the role of central banks as regulators of commercial banks and bankers to governments. 2. Explain that central banks are usually made responsible for interest rates and exchange rates in order to achieve macroeconomic objectives. 3. Explain, using a demand and supply of money diagram, how equilibrium interest rates are determined, outlining the role of the central bank in influencing the supply of money. 2.5B The role of monetary policy: Monetary policy and short-term demand management 1. Explain how changes in interest rates can influence the level of aggregate demand in an economy. 2. Explain the mechanism through which easy (expansionary) monetary policy can help an economy close a deflationary (recessionary) gap. 3. Construct a diagram to show the potential effects of easy (expansionary) monetary policy, outlining the importance of the shape of the aggregate supply curve. 4. Explain the mechanism through which tight (contractionary) monetary policy can help an economy close an inflationary gap. 5. Construct a diagram to show the potential effects of tight (contractionary) monetary policy, outlining the importance of the shape of the aggregate supply curve. 2.5C The role of monetary policy: Monetary policy and inflation targeting

1. Explain that central banks of certain countries, rather than focusing on the maintenance of both full employment and a low rate of inflation, are guided in their monetary policy by the objective to achieve an explicit or implicit inflation rate target. 2.5D The role of monetary policy: Evaluation of monetary policy 1. Evaluate the effectiveness of monetary policy through consideration of factors including the independence of the central bank, the ability to adjust interest rates incrementally, the ability to implement changes in interest rates relatively quickly, time lags, limited effectiveness in increasing aggregate demand if the economy is in deep recession and conflict among government economic objectives. 2.6A The role of supply-side policies: Supply-side policies and the economy 1. Explain that supply-side policies aim at positively affecting the production side of an economy by improving the institutional framework and the capacity to produce (that is, by changing the quantity and/or quality of factors of production). 2. State that supply-side policies may be market-based or interventionist, and that in either case they aim to shift the LRAS curve to the right, achieving growth in potential output. 2.6B Interventionist supply-side policies: Investment in human capital 1. Explain how investment in education and training will raise the levels of human capital and have a short-term impact on aggregate demand, but more importantly will increase LRAS. 2.6C Interventionist supply-side policies: Investment in new technology 1. Explain how policies that encourage research and development will have a short-term impact on aggregate demand, but more importantly will result in new technologies and will increase LRAS. 2.6E Interventionist supply-side policies: Industrial policies 1. Explain that targeting specific industries through policies including tax cuts, tax allowances and subsidized lending promotes growth in key areas of the economy and will have a short-term impact on aggregate demand but, more importantly, will increase LRAS. 2.6F Market-based supply-side policies: Policies to encourage competition 1. Explain how factors including deregulation, privatization, trade liberalization and antimonopoly regulation are used to encourage competition. 2.6G Market-based supply-side policies: Labor market reforms 1. Explain how factors including reducing the power of labor unions, reducing unemployment benefits and abolishing minimum wages are used to make the labor market more flexible (more responsive to supply and demand). 2.6H Market-based supply-side policies: Incentive-related policies 1. Explain how factors including personal income tax cuts are used to increase the incentive to work, and how cuts in business tax and capital gains tax are used to increase the incentive to invest. 2.6I Evaluation of supply-side policies: The strengths and weaknesses of supplyside policies 1. Evaluate the effectiveness of supply-side policies through consideration of factors including time lags, the ability to create employment, the ability to reduce inflationary pressure, the impact on economic growth, the impact on the government budget, the effect on equity, and the effect on the environment. Aligned Washington State Learning Standards Arts Level 3A (grades 9-10) Concept I- Impacts of Computing Computer Science 3A-I-7-24 Discuss implications of the collection and large-scale analysis of information about individuals (e.g., how businesses, social media, and government collect and use personal data). 1.1-Innovate: Demonstrate creative thinking, construct knowledge and develop innovative products and processes using technology. 1.1.1-Generate ideas and create original works for personal and group expression using a variety of digital tools. 1.1.2-Use models and simulations to explore systems, identify trends and forecast possibilities. 1.2-Collaborate: Use digital media and environments to communicate and work collaboratively to support individual learning and Educational Technology contribute to the learning of others. 1.2.1-Communicate and collaborate to learn with others. 1.3-Investigate and Think Critically: Research, manage and evaluate information and solve problems. 1.3.1-Identify and define authentic problems and significant questions for investigation and plan strategies to guide inquiry. 1.3.2-Locate and organize information from a variety of sources and media.

1.3.3-Analyze, synthesize and ethically use information to develop a solution, make informed decisions and report results. 2.1-Practice Safety: Demonstrate safe, legal and ethical behavior in the use of information and technology. 2.1.2-Practice ethical and respectful behavior. 2.3-Select and Use Applications: Use productivity tools and common applications effectively and constructively. 2.3.1-Select and use common applications. 2.3.2-Select and use online applications. College and Career Readiness Anchor Standards for Language 1. Demonstrate command of the conventions of standard English grammar and usage when writing or speaking. (Conventions of Standard English) 2. Demonstrate command of the conventions of standard English capitalization, punctuation, and spelling when writing. (Conventions of Standard English) 6. Acquire and use accurately a range of general academic and domain-specific words and phrases sufficient for reading, writing, speaking, and listening at the college and career readiness level; demonstrate independence in gathering vocabulary knowledge when considering a word or phrase important to comprehension or expression. (Vocabulary Acquisition and Use) College and Career Readiness Anchor Standards for Reading CCR 01. Read closely to determine what the text says explicitly and to make logical inferences from it; cite specific textual evidence when writing or speaking to support conclusions drawn from the text. (Key Ideas and Details) CCR 02. Determine central ideas or themes of a text and analyze their development; summarize the key supporting details and ideas. (Key Ideas and Details) CCR 03. Analyze how and why individuals, events, and ideas develop and interact over the course of a text. (Key Ideas and Details) CCR 04. Interpret words and phrases as they are used in a text, including determining technical, connotative, and figurative meanings, and analyze how specific word choices shape meaning or tone.(Craft and Structure) CCR 08. Delineate and evaluate the argument and specific claims in a text, including the validity of the reasoning as well as the relevance and sufficiency of the evidence. (Integration of Knowledge and Ideas) English Language Arts CCR 10. Read and comprehend complex literary and informational texts independently and proficiently. (Range of Reading and Level of Complexity) College and Career Readiness Anchor Standards for Speaking and Listening CCR 01. Prepare for and participate effectively in a range of conversations and collaborations with diverse partners, building on others’ ideas and expressing their own clearly and persuasively. (Comprehension and Collaboration) CCR 04. Present information, findings, and supporting evidence such that listeners can follow the line of reasoning and the organization, development, and style are appropriate to task, purpose, and audience. (Presentation of Knowledge and Ideas) CCR 05. Make strategic use of digital media and visual displays of data to express information and enhance understanding of presentations. (Presentation of Knowledge and Ideas) College and Career Readiness Anchor Standards for Writing CCR 01 Write arguments to support claims in an analysis of substantive topics or texts using valid reasoning and relevant and sufficient evidence. (Text Types and Purposes) CCR 02 Write informative/explanatory texts to examine and convey complex ideas and information clearly and accurately through the effective selection, organization, and analysis of content. (Text Types and Purposes) CCR 04 Produce clear and coherent writing in which the development, organization, and style are appropriate to task, purpose, and audience. (Production and Distribution of Writing) CCR 06 Use technology, including the Internet, to produce and publish writing and to interact and collaborate with others. (Production and Distribution of Writing) CCR 07 Conduct short as well as more sustained research projects based on focused questions, demonstrating

understanding of the subject under investigation. (Research to Build and Present Knowledge) CCR 08 Gather relevant information from multiple print and digital sources, assess the credibility and accuracy of each source, and integrate the information while avoiding plagiarism. (Research to Build and Present Knowledge) CCR 09 Draw evidence from literary or informational texts to support analysis, reflection, and research. (Research to Build and Present Knowledge) CCR 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. (Range of Writing) Science and Technology Literacy Standards (Grades 11-12) RST.11-12.1 Cite specific textual evidence to support analysis of science and technical texts, attending to important distinctions the author makes and to any gaps or inconsistencies in the account. RST.11-12.2 Determine the central ideas or conclusions of a text; summarize complex concepts, processes, or information presented in a text by paraphrasing them in simpler but still accurate terms. RST.11-12.3 Follow precisely a complex multistep procedure when carrying out experiments, taking measurements, or performing technical tasks; analyze the specific results based on explanations in the text. RST.11-12.4 Determine the meaning of symbols, key terms, and other domain-specific words and phrases as they are used in a specific scientific or technical context relevant to grades 11-12 texts and topics. RST.11-12.7 Integrate and evaluate multiple sources of information presented in diverse formats and media (e.g., quantitative data, video, multimedia) in order to address a question or solve a problem. RST.11-12.9 Synthesize information from a range of sources (e.g., texts, experiments, simulations) into a coherent understanding of a process, phenomenon, or concept, resolving conflicting information when possible. Standard 1: Ecological, Social and Economic Systems Students develop knowledge of the interconnections and interdependency of ecological, social, and economic systems. Environment & Sustainability They demonstrate understanding of how the health of these systems determines the sustainability of natural and human communities at local, regional, national, and global levels. Financial Education Health and Physical Education Building Functions CC.9-12.F.BF.1b Combine standard function types using arithmetic operations. CC.9-12.F.BF.2 Build a function that models a relationship between two quantities. Write arithmetic and geometric sequences both recursively and with an explicit formula, use them to model situations, and translate between the two forms. Mathematics | Standards for Mathematical Practice Practice 1: Make sense of problems and persevere in solving them. Practice 3: Construct viable arguments and critique the reasoning of others. Practice 5: Use appropriate tools strategically. Mathematics Practice 6: Attend to precision. Quantities CC.9-12.N.Q.1 Use units as a way to understand problems and to guide the solution of multi-step problems; choose and interpret units consistently in formulas; choose and interpret the scale and the origin in graphs and data displays. CC.9-12.N.Q.3 Choose a level of accuracy appropriate to limitations on measurement when reporting quantities. Reasoning with Equations and Inequalities CC.9-12.A.REI.10 Understand that the graph of an equation in two variables is the set of all its solutions plotted in the coordinate plane, often forming a curve (which could be a line). Science - Next Generation - High School HS-ESS3 Earth and Human Activity. Science HS-ESS3-1. Construct an explanation based on evidence for how the availability of natural resources, occurrence of natural hazards, and changes in climate have influenced human activity.

HS-ESS3-4. Evaluate or refine a technological solution that reduces impacts of human activities on natural systems.* HS-ETS1 Engineering Design HS-ETS1-1. Analyze a major global challenge to specify qualitative and quantitative criteria and constraints for solutions that account for societal needs and wants. HS-ETS1-3. Evaluate a solution to a complex real-world problem based on prioritized criteria and trade-offs that account for a range of constraints, including cost, safety, reliability, and aesthetics, as well as possible social, cultural, and environmental impacts. Science - Next Generation Standards (High School Science and Engineering Practices) Analyzing and Interpreting Data Analyze data using tools, technologies, and/or models (e.g., computational, mathematical) in order to make valid and reliable scientific claims or determine an optimal design solution. Evaluate the impact of new data on a working explanation and/or model of a proposed process or system. Asking Questions and Defining Problems Ask Questions that arise from careful observation of phenomena, or unexpected results, to clarify and/or seek additional information. Ask Questions that arise from examining models or a theory, to clarify and/or seek additional information and relationships. Ask Questions to clarify and refine a model, an explanation, or an engineering problem. Constructing Explanations and designing Solutions Apply scientific ideas, principles, and/or evidence to provide an explanation of phenomena and solve design problems, taking into account possible unanticipated effects. Apply scientific reasoning, theory, and/or models to link evidence to the claims to assess the extent to which the reasoning and data support the explanation or conclusion. Construct and revise an explanation based on valid and reliable evidence obtained from a variety of sources (including students’ own investigations, models, theories, simulations, peer review) and the assumption that theories and laws that describe the natural world operate today as they did in the past and will continue to do so in the future. Developing and Using Models Develop a complex model that allows for manipulation and testing of a proposed process or system. Develop and/or use a model (including mathematical and computational) to generate data to support explanations, predict phenomena, analyze systems, and/or solve problems. Develop and/or use multiple types of models to provide mechanistic accounts and/or predict phenomena, and move flexibly between model types based on merits and limitations. Develop, revise, and/or use a model based on evidence to illustrate and/or predict the relationships between systems or between components of a system. Engaging in Argument from Evidence Compare and evaluate competing arguments or design solutions in light of currently accepted explanations, new evidence, limitations (e.g., trade-offs), constraints, and ethical issues. Construct, use, and/or present an oral and written argument or counter-arguments based on data and evidence. Evaluate competing design solutions to a real-world problem based on scientific ideas and principles, empirical evidence, and/or logical arguments regarding relevant factors (e.g. economic, societal, environmental, ethical considerations). Evaluate the claims, evidence, and/or reasoning behind currently accepted explanations or solutions to determine the merits of arguments. Evaluate a question to determine if it is testable and relevant. Ask and/or evaluate questions that challenge the premise(s) of an argument, the interpretation of a data set, or the suitability of a design Obtaining, Evaluating, and Communicating Information Communicate scientific and/or technical information or ideas (e.g. about phenomena and/or the process of development

and the design and performance of a proposed process or system) in multiple formats (including orally, graphically, textually, and mathematically). Compare, integrate and evaluate sources of information presented in different media or formats (e.g., visually, quantitatively) as well as in words in order to address a scientific question or solve a problem. Critically read scientific literature adapted for classroom use to determine the central ideas or conclusions and/or to obtain scientific and/or technical information to summarize complex evidence, concepts, processes, or information presented in a text by paraphrasing them in simpler but still accurate terms. Gather, read, and evaluate scientific and/or technical information from multiple authoritative sources, assessing the evidence and usefulness of each source. Planning and Carrying Out Investigations Manipulate variables and collect data about a complex model of a proposed process or system to identify failure points or improve performance relative to criteria for success or other variables. Plan an investigation or test a design individually and collaboratively to produce data to serve as the basis for evidence as part of building and revising models, supporting explanations for phenomena, or testing solutions to problems. Consider possible confounding variables or effects and evaluate the investigation’s design to ensure variables are controlled. Using Mathematics and Computational Thinking Use mathematical, computational, and/or algorithmic representations of phenomena or design solutions to describe and/or support claims and/or explanations. Grade 11 GLE Standards 1. CIVICS The student understands and applies knowledge of government, law, politics, and the nation's fundamental documents to make decisions about local, national, and international issues and to demonstrate thoughtful, participatory citizenship. 1.1 Understands key ideals and principles of the United States, including those in the Declaration of Independence, the Constitution, and other fundamental documents. 1.2 Understands the purposes, organization, and function of governments, laws, and political systems. 1.3 Understands the purposes and organization of international relationships and U.S. foreign policy. 2. ECONOMICS The student applies understanding of economic concepts and systems to analyze decision-making and the interactions between individuals, households, businesses, governments, and societies. 2.1 Understands that people have to make choices between wants and needs and evaluate the outcomes of those choices. 2.2 Understands how economic systems function. Social Studies 2.3 Understands the government's role in the economy. 2.4 Understands the economic issues and problems that all societies face. 3. GEOGRAPHY The student uses a spatial perspective to make reasoned decisions by applying the concepts of location, region, and movement and demonstrating knowledge of how geographic features and human cultures impact environments. 3.2 Understands human interaction with the environment. 4. HISTORY The student understands and applies knowledge of historical thinking, chronology, eras, turning points, major ideas, individuals, and themes in local, Washington State, tribal, United States, and world history in order to evaluate how history s 4.2 Understands and analyzes causal factors that have shaped major events in history. 5. SOCIAL STUDIES SKILLS The student understands and applies reasoning skills to conduct research, deliberate, form, and evaluate positions through the processes of reading, writing, and communicating. 5.1 Uses critical reasoning skills to analyze and evaluate positions. 5.3 Deliberates public issues.

COMPONENTS AND ASSESSMENTS

Performance Assessment:

International Economics Objective: International trade

• Formative assessment- World Trade Organization web site scavenger hunt • Summative assessment- Test utilizing a mixture of multiple choice, short answer problem based and free write methods.

International Economics Objective: Protectionism

• Formative assessment- NAFTA pro and con discussion • Summative assessment- Test utilizing a mixture of multiple choice, short answer problem based and free write methods.

International Economics Objective: Exchange rates

• Formative assessment- Exchange rate graph project • Summative assessment- Test utilizing a mixture of multiple choice, short answer problem based and free write methods.

International Economics Objective: The balance of payments

• Formative assessment- Import vs. export analysis by country project • Summative assessment- Test utilizing a mixture of multiple choice, short answer problem based and free write methods.

International Economics Objective: Economic integration

• Formative assessment- Britain’s exit from European Union small group discussions and share out presentations • Summative assessment- Test utilizing a mixture of multiple choice, short answer problem based and free write methods.

Leadership Alignment:

Collaborate with Others- 3.B.3 Assume shared responsibility for collaborative work, and value the individual contributions made by each team member- Students will peer edit IB internal assessments against a student created rubric and debrief findings to the original author including writing style, content, analysis and evaluation techniques applied.

Access and Evaluate Information- 4.A.1 Access information efficiently (time) and effectively (sources)- Students create graphs from business data that demonstrates various economic principles such as exchange rates. They then analyze the data and predict future successes or failures of policy decisions.

Be Flexible- 7.B.1 Incorporate feedback effectively- Students will incorporate feedback on international trade role plays to develop a final free write essay

Manage Goals and Time- 8.A.2 Balance tactical (short-term) and strategic (long-term) goals- Students will set ST and LT goals to prepare for their presentation of their International economic internal assessment

Standards and Competencies

Unit: 3: International Economics

Industry Standards and/or Competencies Total Learning Hours for Unit: 40 450601 - IB Economics 3.1A Free trade: The benefits of trade 1. Explain that gains from trade include lower prices for consumers, greater choice for consumers, the ability of producers to benefit from economies of scale, the ability to acquire needed resources, a more efficient allocation of resources, increased competition, and a source of foreign exchange. 3.1B Free trade: Absolute and comparative advantage 1. Explain the theory of absolute advantage. 2. Explain, using a diagram, the gains from trade arising from a country’s absolute advantage in the production of a good. 3. Explain the theory of comparative advantage. 4. Describe the sources of comparative advantage, including the differences between countries in factor endowments and the levels of technology. 5. Draw a diagram to show comparative advantage. 6. Calculate opportunity costs from a set of data in order to identify comparative advantage. 7. Draw a diagram to illustrate comparative advantage from a set of data. 8. Discuss the real-world relevance and limitations of the theory of comparative advantage, considering factors including the assumptions on which it rests, and the costs and benefits of specialization (a full discussion must take into account arguments in favor and against free trade and protection—see below). 3.1C Free trade: The World Trade Organization (WTO) 1. Describe the objectives and functions of the WTO. 3.1D Restrictions on free trade: Trade protection: Types of trade protection 1. Explain, using a tariff diagram, the effects of imposing a tariff on imported goods on different stakeholders, including domestic producers, foreign producers, consumers and the government. 2. Explain, using a diagram, the effects of setting a quota on foreign producers on different stakeholders, including domestic producers, foreign producers, consumers and the government. 3. Explain, using a diagram, the effects of giving a subsidy to domestic producers on different stakeholders, including domestic producers, foreign producers, consumers and the government. 4. Describe administrative barriers that may be used as a means of protection. 5. Evaluate the effect of different types of trade protection. 6. Calculate from diagrams the effects of imposing a tariff on imported goods on different stakeholders, including domestic producers, foreign producers, consumers and the government. 7. Calculate from diagrams the effects of setting a quota on foreign producers on different stakeholders, including domestic producers, foreign producers, consumers and the government. 8. Calculate from diagrams the effects of giving a subsidy to domestic producers on different stakeholders, including domestic producers, foreign producers, consumers and the government. 3.1E Restrictions on free trade: Trade protection: Arguments for and against trade protection (arguments against and for free trade) 1. Discuss the arguments in favor of trade protection, including the protection of domestic jobs, national security, protection of infant industries, the maintenance of health, safety and environmental standards, anti-dumping and unfair competition, a means of overcoming a balance of payments deficit and a source of government revenue. 2. Discuss the arguments against trade protection, including a misallocation of resources, the danger of retaliation and “trade wars”, the potential for corruption, increased costs of production due to lack of competition, higher prices for domestic consumers, increased costs of imported factors of production and reduced export competitiveness. 3.2A Freely floating exchange rates: Determination of freely floating exchange rates 1. Explain that the value of an exchange rate in a floating system is determined by the demand for, and supply of, a currency. 2. Draw a diagram to show determination of exchange rates in a floating exchange rate system. 3. Calculate the value of one currency in terms of another currency.

4. Calculate the exchange rate for linear demand and supply functions. 5. Plot demand and supply curves for a currency from linear functions and identify the equilibrium exchange rate. 6. Using exchange rates, calculate the price of a good in different currencies. 3.2B Freely floating exchange rates: Causes of changes in the exchange rate 1. Explain the factors that lead to changes in currency demand and supply, including foreign demand for a country’s exports, domestic demand for imports, relative interest rates, relative inflation rates, investment from overseas in a country’s firms (foreign direct investment and portfolio investment) and speculation. 2. Distinguish between a depreciation of the currency and an appreciation of the currency. 3. Draw diagrams to show changes in the demand for, and supply of, a currency. 4. Calculate the changes in the value of a currency from a set of data. 3.2C Freely floating exchange rates: The effects of exchange rate changes 1. Evaluate the possible economic consequences of a change in the value of a currency, including the effects on a country’s inflation rate, employment, economic growth and current account balance. 3.2D Government intervention: Fixed exchange rates 1. Describe a fixed exchange rate system involving commitment to a single fixed rate. 2. Distinguish between a devaluation of a currency and a revaluation of a currency. 3. Explain, using a diagram, how a fixed exchange rate is maintained. 3.2E Government intervention: Managed exchange rates (managed float) 1. Explain how a managed exchange rate operates, with reference to the fact that there is a periodic government intervention to influence the value of an exchange rate. 2. Examine the possible consequences of overvalued and undervalued currencies. 3.2F Government intervention: Evaluation of different exchange rate systems 1. Compare and contrast a fixed exchange rate system with a floating exchange rate system, with reference to factors including the degree of certainty for stakeholders, ease of adjustment, the role of international reserves in the form of foreign currencies and flexibility offered to policy makers. 3.3A The structure of the balance of payments: The meaning of the balance of payments 1. Outline the role of the balance of payments. 2. Distinguish between debit items and credit items in the balance of payments. 3.3B The structure of the balance of payments: The components of the balance of payments accounts 1. Explain the four components of the current account, specifically the balance of trade in goods, the balance of trade in services, income and current transfers. 2. Distinguish between a current account deficit and a current account surplus. 3. Explain the two components of the capital account, specifically capital transfers and transaction in non-produced, non-financial assets. 4. Explain the three main components of the financial account, specifically, direct investment, portfolio investment and reserve assets. 5. Calculate elements of the balance of payments from a set of data. 3.3C The structure of the balance of payments: The relationships between the accounts 1. Explain that the current account balance is equal to the sum of the capital account and financial account balances (see the appendix, “The balance of payments”). 2. Examine how the current account and the financial account are interdependent. 3.3D Current account deficits: The relationship between the current account and the exchange rate 1. Explain why a deficit in the current account of the balance of payments may result in downward pressure on the exchange rate of the currency. 3.3E Current account deficits: Implications of a persistent current account deficit 1. Discuss the implications of a persistent current account deficit, referring to factors including foreign ownership of domestic assets, exchange rates, interest rates, indebtedness, international credit ratings and demand management. 3.3F Current account deficits: Methods to correct a persistent current account deficit 1. Explain the methods that a government can use to correct a persistent current account deficit, including expenditure switching policies, expenditure reducing policies and supply-side policies, to increase competitiveness. 2. Evaluate the effectiveness of the policies to correct a persistent current account deficit. 3.3G Current account deficits: The Marshall-Lerner condition and the J-curve effect

1. State the Marshall-Lerner condition. 2. Apply the Marshall-Lerner condition to the effect of devaluation/depreciation on the current account. 3. Explain the J-curve effect, with reference to the Marshall- Lerner condition. 3.3H Current account surpluses: The relationship between the current account and the exchange rate 1. Explain why a surplus in the current account of the balance of payments may result in upward pressure on the exchange rate of the currency. 3.3I Current account surpluses: Implications of a persistent current account surplus 1. Discuss the possible consequences of a rising current account surplus, including lower domestic consumption and investment, as well as the appreciation of the domestic currency and reduced export competitiveness. 3.4A Forms of economic integration: Preferential trade agreements 1. Distinguish between bilateral and multilateral (WTO) trade agreements. 2. Explain that preferential trade agreements give preferential access to certain products from certain countries by reducing or eliminating tariffs, or by other agreements relating to trade. 3.4B Forms of economic integration: Trading blocs 1. Distinguish between a free trade area, a customs union and a common market. 2. Explain that economic integration will increase competition among producers within the trading bloc. 3. Compare and contrast the different types of trading blocs. 4. Explain the concepts of trade creation and trade diversion in a customs union. 5. Explain the concepts of trade creation and trade diversion in a customs union. 3.4C Forms of economic integration: Monetary union 1. Explain that a monetary union is a common market with a common currency and a common central bank. 2. Discuss the possible advantages and disadvantages of a monetary union for its members. 3.5A The meaning of the terms of trade: Measurement 1. Explain the meaning of the terms of trade. 2. Explain how the terms of trade are measured. 3. Distinguish between an improvement and a deterioration in the terms of trade. 4. Calculate the terms of trade using the equation: Index of average export prices/index of average import prices x 100. 3.5B The meaning of the terms of trade: Causes of changes in the terms of trade 1. Explain that the terms of trade may change in the short term due to changes in demand conditions for exports and imports, changes in global supply of key inputs (such as oil), changes in relative inflation rates and changes in relative exchange rates. 2. Explain that the terms of trade may change in the long term due to changes in world income levels, changes in productivity within the country and technological developments. 3.5C The meaning of the terms of trade: Consequences of changes in the terms of trade 1. Explain how changes in the terms of trade in the long term may result in a global redistribution of income. 2. Examine the effects of changes in the terms of trade on a country’s current account, using the concepts of price elasticity of demand for exports and imports. 3. Examine the impacts of short-term fluctuations and long-term deterioration in the terms of trade of economically less developed countries that specialize in primary commodities, using the concepts of price elasticity of demand and supply for primary products and income elasticity of demand. Aligned Washington State Learning Standards Arts Level 3A (grades 9-10) Concept I- Impacts of Computing Computer Science 3A-I-7-24 Discuss implications of the collection and large-scale analysis of information about individuals (e.g., how businesses, social media, and government collect and use personal data). 1.1-Innovate: Demonstrate creative thinking, construct knowledge and develop innovative products and processes using technology. Educational Technology 1.1.1-Generate ideas and create original works for personal and group expression using a variety of digital tools. 1.1.2-Use models and simulations to explore systems, identify trends and forecast possibilities. 1.2-Collaborate: Use digital media and environments to communicate and work collaboratively to support individual learning and

contribute to the learning of others. 1.2.1-Communicate and collaborate to learn with others. 1.3-Investigate and Think Critically: Research, manage and evaluate information and solve problems. 1.3.1-Identify and define authentic problems and significant questions for investigation and plan strategies to guide inquiry. 1.3.2-Locate and organize information from a variety of sources and media. 1.3.3-Analyze, synthesize and ethically use information to develop a solution, make informed decisions and report results. 2.1-Practice Safety: Demonstrate safe, legal and ethical behavior in the use of information and technology. 2.1.2-Practice ethical and respectful behavior. 2.3-Select and Use Applications: Use productivity tools and common applications effectively and constructively. 2.3.1-Select and use common applications. 2.3.2-Select and use online applications. College and Career Readiness Anchor Standards for Language 1. Demonstrate command of the conventions of standard English grammar and usage when writing or speaking. (Conventions of Standard English) 2. Demonstrate command of the conventions of standard English capitalization, punctuation, and spelling when writing. (Conventions of Standard English) 6. Acquire and use accurately a range of general academic and domain-specific words and phrases sufficient for reading, writing, speaking, and listening at the college and career readiness level; demonstrate independence in gathering vocabulary knowledge when considering a word or phrase important to comprehension or expression. (Vocabulary Acquisition and Use) College and Career Readiness Anchor Standards for Reading CCR 01. Read closely to determine what the text says explicitly and to make logical inferences from it; cite specific textual evidence when writing or speaking to support conclusions drawn from the text. (Key Ideas and Details) CCR 02. Determine central ideas or themes of a text and analyze their development; summarize the key supporting details and ideas. (Key Ideas and Details) CCR 03. Analyze how and why individuals, events, and ideas develop and interact over the course of a text. (Key Ideas and Details) CCR 04. Interpret words and phrases as they are used in a text, including determining technical, connotative, and figurative English Language Arts meanings, and analyze how specific word choices shape meaning or tone.(Craft and Structure) CCR 08. Delineate and evaluate the argument and specific claims in a text, including the validity of the reasoning as well as the relevance and sufficiency of the evidence. (Integration of Knowledge and Ideas) CCR 10. Read and comprehend complex literary and informational texts independently and proficiently. (Range of Reading and Level of Complexity) College and Career Readiness Anchor Standards for Speaking and Listening CCR 01. Prepare for and participate effectively in a range of conversations and collaborations with diverse partners, building on others’ ideas and expressing their own clearly and persuasively. (Comprehension and Collaboration) CCR 04. Present information, findings, and supporting evidence such that listeners can follow the line of reasoning and the organization, development, and style are appropriate to task, purpose, and audience. (Presentation of Knowledge and Ideas) CCR 05. Make strategic use of digital media and visual displays of data to express information and enhance understanding of presentations. (Presentation of Knowledge and Ideas) College and Career Readiness Anchor Standards for Writing CCR 01 Write arguments to support claims in an analysis of substantive topics or texts using valid reasoning and relevant and sufficient evidence. (Text Types and Purposes) CCR 02 Write informative/explanatory texts to examine and convey complex ideas and information clearly and accurately through the effective selection, organization, and analysis of content. (Text Types and Purposes)

CCR 04 Produce clear and coherent writing in which the development, organization, and style are appropriate to task, purpose, and audience. (Production and Distribution of Writing) CCR 06 Use technology, including the Internet, to produce and publish writing and to interact and collaborate with others. (Production and Distribution of Writing) CCR 07 Conduct short as well as more sustained research projects based on focused questions, demonstrating understanding of the subject under investigation. (Research to Build and Present Knowledge) CCR 08 Gather relevant information from multiple print and digital sources, assess the credibility and accuracy of each source, and integrate the information while avoiding plagiarism. (Research to Build and Present Knowledge) CCR 09 Draw evidence from literary or informational texts to support analysis, reflection, and research. (Research to Build and Present Knowledge) CCR 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. (Range of Writing) Science and Technology Literacy Standards (Grades 11-12) RST.11-12.1 Cite specific textual evidence to support analysis of science and technical texts, attending to important distinctions the author makes and to any gaps or inconsistencies in the account. RST.11-12.2 Determine the central ideas or conclusions of a text; summarize complex concepts, processes, or information presented in a text by paraphrasing them in simpler but still accurate terms. RST.11-12.3 Follow precisely a complex multistep procedure when carrying out experiments, taking measurements, or performing technical tasks; analyze the specific results based on explanations in the text. RST.11-12.4 Determine the meaning of symbols, key terms, and other domain-specific words and phrases as they are used in a specific scientific or technical context relevant to grades 11-12 texts and topics. RST.11-12.7 Integrate and evaluate multiple sources of information presented in diverse formats and media (e.g., quantitative data, video, multimedia) in order to address a question or solve a problem. RST.11-12.9 Synthesize information from a range of sources (e.g., texts, experiments, simulations) into a coherent understanding of a process, phenomenon, or concept, resolving conflicting information when possible. Standard 1: Ecological, Social and Economic Systems Students develop knowledge of the interconnections and interdependency of ecological, social, and economic systems. Environment & Sustainability They demonstrate understanding of how the health of these systems determines the sustainability of natural and human communities at local, regional, national, and global levels. Financial Education Health and Physical Education Building Functions CC.9-12.F.BF.1a Determine an explicit expression, a recursive process, or steps for calculation from a context. CC.9-12.F.BF.2 Build a function that models a relationship between two quantities. Write arithmetic and geometric sequences both recursively and with an explicit formula, use them to model situations, and translate between the two forms. Mathematics | Standards for Mathematical Practice Practice 1: Make sense of problems and persevere in solving them. Practice 3: Construct viable arguments and critique the reasoning of others. Mathematics Practice 5: Use appropriate tools strategically. Practice 6: Attend to precision. Quantities CC.9-12.N.Q.1 Use units as a way to understand problems and to guide the solution of multi-step problems; choose and interpret units consistently in formulas; choose and interpret the scale and the origin in graphs and data displays. CC.9-12.N.Q.3 Choose a level of accuracy appropriate to limitations on measurement when reporting quantities. Reasoning with Equations and Inequalities CC.9-12.A.REI.10 Understand that the graph of an equation in two variables is the set of all its solutions plotted in the

coordinate plane, often forming a curve (which could be a line). Science - Next Generation - High School HS-ESS3 Earth and Human Activity. HS-ESS3-1. Construct an explanation based on evidence for how the availability of natural resources, occurrence of natural hazards, and changes in climate have influenced human activity. HS-ESS3-4. Evaluate or refine a technological solution that reduces impacts of human activities on natural systems.* HS-ETS1 Engineering Design HS-ETS1-1. Analyze a major global challenge to specify qualitative and quantitative criteria and constraints for solutions that account for societal needs and wants. HS-ETS1-3. Evaluate a solution to a complex real-world problem based on prioritized criteria and trade-offs that account for a range of constraints, including cost, safety, reliability, and aesthetics, as well as possible social, cultural, and environmental impacts. Science - Next Generation Standards (High School Science and Engineering Practices) Analyzing and Interpreting Data Analyze data using tools, technologies, and/or models (e.g., computational, mathematical) in order to make valid and reliable scientific claims or determine an optimal design solution. Evaluate the impact of new data on a working explanation and/or model of a proposed process or system. Asking Questions and Defining Problems Ask Questions that arise from careful observation of phenomena, or unexpected results, to clarify and/or seek additional information. Ask Questions that arise from examining models or a theory, to clarify and/or seek additional information and relationships. Ask Questions to clarify and refine a model, an explanation, or an engineering problem. Constructing Explanations and designing Solutions Science Apply scientific ideas, principles, and/or evidence to provide an explanation of phenomena and solve design problems, taking into account possible unanticipated effects. Apply scientific reasoning, theory, and/or models to link evidence to the claims to assess the extent to which the reasoning and data support the explanation or conclusion. Construct and revise an explanation based on valid and reliable evidence obtained from a variety of sources (including students’ own investigations, models, theories, simulations, peer review) and the assumption that theories and laws that describe the natural world operate today as they did in the past and will continue to do so in the future. Developing and Using Models Develop a complex model that allows for manipulation and testing of a proposed process or system. Develop and/or use a model (including mathematical and computational) to generate data to support explanations, predict phenomena, analyze systems, and/or solve problems. Develop and/or use multiple types of models to provide mechanistic accounts and/or predict phenomena, and move flexibly between model types based on merits and limitations. Develop, revise, and/or use a model based on evidence to illustrate and/or predict the relationships between systems or between components of a system. Engaging in Argument from Evidence Compare and evaluate competing arguments or design solutions in light of currently accepted explanations, new evidence, limitations (e.g., trade-offs), constraints, and ethical issues. Construct, use, and/or present an oral and written argument or counter-arguments based on data and evidence. Evaluate competing design solutions to a real-world problem based on scientific ideas and principles, empirical evidence, and/or logical arguments regarding relevant factors (e.g. economic, societal, environmental, ethical considerations). Evaluate the claims, evidence, and/or reasoning behind currently accepted explanations or solutions to determine the merits of arguments.

Evaluate a question to determine if it is testable and relevant. Ask and/or evaluate questions that challenge the premise(s) of an argument, the interpretation of a data set, or the suitability of a design Obtaining, Evaluating, and Communicating Information Communicate scientific and/or technical information or ideas (e.g. about phenomena and/or the process of development and the design and performance of a proposed process or system) in multiple formats (including orally, graphically, textually, and mathematically). Compare, integrate and evaluate sources of information presented in different media or formats (e.g., visually, quantitatively) as well as in words in order to address a scientific question or solve a problem. Critically read scientific literature adapted for classroom use to determine the central ideas or conclusions and/or to obtain scientific and/or technical information to summarize complex evidence, concepts, processes, or information presented in a text by paraphrasing them in simpler but still accurate terms. Gather, read, and evaluate scientific and/or technical information from multiple authoritative sources, assessing the evidence and usefulness of each source. Planning and Carrying Out Investigations Manipulate variables and collect data about a complex model of a proposed process or system to identify failure points or improve performance relative to criteria for success or other variables. Plan an investigation or test a design individually and collaboratively to produce data to serve as the basis for evidence as part of building and revising models, supporting explanations for phenomena, or testing solutions to problems. Consider possible confounding variables or effects and evaluate the investigation’s design to ensure variables are controlled. Using Mathematics and Computational Thinking Use mathematical, computational, and/or algorithmic representations of phenomena or design solutions to describe and/or support claims and/or explanations. Grade 11 GLE Standards 1. CIVICS The student understands and applies knowledge of government, law, politics, and the nation's fundamental documents to make decisions about local, national, and international issues and to demonstrate thoughtful, participatory citizenship. 1.2 Understands the purposes, organization, and function of governments, laws, and political systems. 1.3 Understands the purposes and organization of international relationships and U.S. foreign policy. 2. ECONOMICS The student applies understanding of economic concepts and systems to analyze decision-making and the interactions between individuals, households, businesses, governments, and societies. 2.1 Understands that people have to make choices between wants and needs and evaluate the outcomes of those choices. 2.2 Understands how economic systems function. 2.3 Understands the government's role in the economy. Social Studies 2.4 Understands the economic issues and problems that all societies face. 3. GEOGRAPHY The student uses a spatial perspective to make reasoned decisions by applying the concepts of location, region, and movement and demonstrating knowledge of how geographic features and human cultures impact environments. 3.2 Understands human interaction with the environment. 4. HISTORY The student understands and applies knowledge of historical thinking, chronology, eras, turning points, major ideas, individuals, and themes in local, Washington State, tribal, United States, and world history in order to evaluate how history s 4.2 Understands and analyzes causal factors that have shaped major events in history. 5. SOCIAL STUDIES SKILLS The student understands and applies reasoning skills to conduct research, deliberate, form, and evaluate positions through the processes of reading, writing, and communicating. 5.1 Uses critical reasoning skills to analyze and evaluate positions. 5.3 Deliberates public issues.

COMPONENTS AND ASSESSMENTS Performance Assessments:

Development Economics Objective: Introduction to economic development

• Formative assessment- Less developed countries comparison project • Summative assessment- Test utilizing a mixture of multiple choice, short answer problem based and free write methods.

Development Economics Objective: Domestic and international factors and economic development

• Formative assessment- Human development index scavenger hunt • Summative assessment- Test utilizing a mixture of multiple choice, short answer problem based and free write methods.

Development Economics Objective: Foreign investment, aid, trade and debt

• Formative assessment- Foreign aid presentation and justification • Summative Assessment- Test utilizing a mixture of multiple choice, short answer problem based and free write methods.

Development Economics Objective: The balance between markets and intervention

• Formative assessment- The need for government intervention, pros and cons worksheet • Summative assessment- Test utilizing a mixture of multiple choice, short answer problem based and free write methods.

Leadership Alignment:

Think Creatively- 1.A.1 Use a wide range of idea creation techniques (such as brainstorming)- Students will role play members of the United Nations to present solutions to issues facing developing nations

Reason Effectively- 2.A.1 Use various types of reasoning (inductive, deductive, etc.) as appropriate to the situation- Students will use inductive reasoning to determine possible solutions to foreign aid policy decisions

Make Judgments and Decisions- 2.C.2 Analyze and evaluate major alternative points of view- Students will offer alternative recommendations to peer work about domestic factors effecting economic development abroad

Communicate Clearly- 3.A.1 Articulate thoughts and ideas effectively using oral, written and nonverbal communication skills in a variety of forms and contexts- Students will give a presentation to the class on foreign aid policy decisions.

Collaborate with Others- 3.B.1 Demonstrate ability to work effectively and respectfully with diverse teams- Students will peer edit free write exercises on foreign direct investment

Access and Evaluate Information- 4.A.1 Access information efficiently (time) and effectively (sources)- Students create graphs from business data that demonstrates

various economic principles such as the Gini index. They then analyze the data and predict future successes or failures of policy decisions.

Adapt to Change- 7.A.1 Adapt to varied roles, jobs responsibilities, schedules and contexts- Students will alternate between roles during presentations including questioner, listener, recorder and facilitator

Be Flexible- 7.B.1 Incorporate feedback effectively- Students will provide revised graphs from various feedback mechanisms.

Works Independently- 8.B.1 Monitor, define, prioritize and complete tasks without direct oversight- Students will schedule peer feedback with little teacher guidance based on teams assigned and their various completion times.

Produce Results- 10.B.1.b Manage time and projects effectively- Students will establish action plans to accomplish milestone deliverables to ultimately present complex issues for class discussion.

Standards and Competencies Unit: 4: Development Economics

Industry Standards and/or Competencies Total Learning Hours for Unit: 50 450601 - IB Economics 4.1A The nature of economic growth and economic development: Economic growth and economic development 1. Distinguish between economic growth and economic development. 2. Explain the multidimensional nature of economic development in terms of reducing widespread poverty, raising living standards, reducing income inequalities and increasing employment opportunities. 3. Explain that the most important sources of economic growth in economically less developed countries include increases in quantities of physical capital and human capital, the development and use of new technologies that are appropriate to the conditions of the economically less developed countries, and institutional changes. 4. Discuss the relationship between economic growth and economic development, noting that some limited economic development is possible in the absence of economic growth, but that over the long term economic growth is usually necessary for economic development (however, it should be understood that under certain circumstances economic growth may not lead to economic development). 4.1B The nature of economic growth and economic development: Common characteristics of economically less developed countries 1. Explain, using examples, that economically less developed countries share certain common characteristics (noting that it is dangerous to generalize as there are many exceptions in each case), including low levels of GDP per capita, high levels of poverty, relatively large agricultural sectors, large urban informal sectors and high birth rates. 2. Explain that in some countries there may be communities caught in a poverty trap (poverty cycle) where poor communities are unable to invest in physical, human and natural capital due to low or no savings; poverty is therefore transmitted from generation to generation, and there is a need for intervention to break out of the cycle. 4.1C The nature of economic growth and economic development: Diversity among economically less developed nations 1. Explain, using examples, that economically less developed countries differ enormously from each other in terms of a variety of factors, including resource endowments, climate, history (colonial or otherwise), political systems and degree of political stability. 4.1D The nature of economic growth and economic development: International development goals 1. Outline the current status of international development goals, including the Millennium Development Goals. 4.2A Measurement methods: Single indicators 1. Distinguish between GDP per capita figures and GNI per capita figures. 2. Compare and contrast the GDP per capita figures and the GNI per capita figures for economically more developed countries and economically less developed countries.

3. Distinguish between GDP per capita figures and GDP per capita figures at purchasing power parity (PPP) exchange rates. 4. Compare and contrast GDP per capita figures and GDP per capita figures at purchasing power parity (PPP) exchange rates for economically more developed countries and economically less developed countries. 5. Compare and contrast two health indicators for economically more developed countries and economically less developed countries. 6. Compare and contrast two education indicators for economically more developed countries and economically less developed countries. 4.2B Measurement methods: Composite indicators 1. Explain that composite indicators include more than one measure and so are considered to be better indicators of economic development. 2. Explain the measures that make up the Human Development Index (HDI). 3. Compare and contrast the HDI figures for economically more developed countries and economically less developed countries. 4. Explain why a country’s GDP/ GNI per capita global ranking may be lower, or higher, than its HDI global ranking. 4.3A Domestic factors and economic development: Domestic factors 1. With reference to a specific developing economy, and using appropriate diagrams where relevant, examine how the following factors contribute to economic development. a. Education and health b. The use of appropriate technology c. Access to credit and micro-credit d. The empowerment of women e. Income distribution 4.4A International trade and economic development: Trade problems facing many economically less developed countries 1. With reference to specific examples, explain how the following factors are barriers to development for economically less developed countries. a. Over- specialization on a narrow range of products b. Price volatility of primary products c. Inability to access international markets 2. With reference to specific examples, evaluate the following factor as a barrier to development for economically less developed countries. a. Long-term changes in the terms of trade. 4.4B International trade and economic development: Trade strategies for economic growth and economic development 1. With reference to specific examples, evaluate each of the following as a means of achieving economic growth and economic development. a. Import substitution b. Export promotion c. Trade liberalization d. The role of the WTO e. Bilateral and regional preferential trade agreements f. Diversification 4.5A Foreign direct investment and multinational corporations (MNCs): The meaning of FDI and MNCs 1. Describe the nature of foreign direct investment (FDI) and multinational corporations (MNCs). 2. Explain the reasons why MNCs expand into economically less developed countries. 3. Explain the characteristics of economically less developed countries that attract FDI, including low cost factor inputs, a regulatory framework that favors profit repatriation and favorable tax rules. 4.5B Foreign direct investment and multinational corporations (MNCs): Advantages and disadvantages of FDI for economically less developed countries 1. Evaluate the impact of foreign direct investment (FDI) for economically less developed countries. 4.6A Foreign aid: Classifications and types of aid 1. Explain that aid is extended to economically less developed countries either by governments of donor countries, in which case it is called official development assistance (ODA), or by nongovernmental organizations (NGOs). 2. Explain that humanitarian aid consists of food aid, medical aid and emergency relief aid. 3. Explain that development aid consists of grants, concessional long-term loans, project aid that includes support for schools and hospitals, and program aid that includes support for sectors such as the education sector and the financial sector. 4. Explain that, for the most part, the priority of NGOs is to provide aid on a small scale to achieve development objectives. 5. Explain that aid might also come in the form of tied aid. 6. Examine the motivations of economically more developed countries giving aid. 7. Compare and contrast the extent, nature and sources of ODA to two economically less developed countries. 4.6B Foreign aid: Evaluation of foreign aid 1. Evaluate the effectiveness of foreign aid in contributing to economic development. 2. Compare and contrast the roles of aid and trade in economic development. 4.6C Multilateral development assistance: The roles of the International Monetary Fund (IMF) and the World Bank 1. Examine the current roles of the IMF and the World Bank in promoting economic development. 4.7A Foreign debt: Foreign debt and its consequences 1. Outline the meaning of foreign debt and explain why countries borrow from foreign creditors.

2. Explain that in some cases countries have become heavily indebted, requiring rescheduling of the debt payments and/or conditional assistance from international organizations, including the IMF and the World Bank. 3. Explain why the servicing of international debt causes balance of payments problems and has an opportunity cost in terms of foregone spending on development objectives. 4. Explain that the burden of debt has led to pressure to cancel the debt of heavily indebted countries. 4.8A Strengths and weaknesses of market-oriented policies: Strengths 1. Discuss the positive outcomes of market-oriented policies (such as liberalized trade and capital flows, privatization and deregulation), including a more efficient allocation of resources and economic growth. 4.8B Strengths and weaknesses of market-oriented policies: Weaknesses 1. Discuss the negative outcomes of market-oriented strategies, including market failure, the development of a dual economy and income inequalities. 4.8C Strengths and weaknesses of interventionist policies: Strengths 1. Discuss the strengths of interventionist policies, including the provision of infrastructure, investment in human capital, the provision of a stable macroeconomic economy and the provision of a social safety net. 4.8D Strengths and weaknesses of interventionist policies: Weaknesses 1. Discuss the limitations of interventionist policies, including excessive bureaucracy, poor planning and corruption. 4.8E Strengths and weaknesses of interventionist policies: Market with government intervention 1. Explain the importance of good governance in the development process. 2. Discuss the view that economic development may best be achieved through a complementary approach, involving a balance of market oriented policies and government intervention. Aligned Washington State Learning Standards Arts Level 3A (grades 9-10) Concept I- Impacts of Computing Computer Science 3A-I-7-24 Discuss implications of the collection and large-scale analysis of information about individuals (e.g., how businesses, social media, and government collect and use personal data). 1.1-Innovate: Demonstrate creative thinking, construct knowledge and develop innovative products and processes using technology. 1.1.1-Generate ideas and create original works for personal and group expression using a variety of digital tools. 1.1.2-Use models and simulations to explore systems, identify trends and forecast possibilities. 1.2-Collaborate: Use digital media and environments to communicate and work collaboratively to support individual learning and contribute to the learning of others. 1.2.1-Communicate and collaborate to learn with others. 1.3-Investigate and Think Critically: Research, manage and evaluate information and solve problems. Educational Technology 1.3.1-Identify and define authentic problems and significant questions for investigation and plan strategies to guide inquiry. 1.3.2-Locate and organize information from a variety of sources and media. 1.3.3-Analyze, synthesize and ethically use information to develop a solution, make informed decisions and report results. 2.1-Practice Safety: Demonstrate safe, legal and ethical behavior in the use of information and technology. 2.1.2-Practice ethical and respectful behavior. 2.3-Select and Use Applications: Use productivity tools and common applications effectively and constructively. 2.3.1-Select and use common applications. 2.3.2-Select and use online applications. College and Career Readiness Anchor Standards for Language 1. Demonstrate command of the conventions of standard English grammar and usage when writing or speaking. (Conventions of Standard English) English Language Arts 2. Demonstrate command of the conventions of standard English capitalization, punctuation, and spelling when writing. (Conventions of Standard English) 6. Acquire and use accurately a range of general academic and domain-specific words and phrases sufficient for reading,

writing, speaking, and listening at the college and career readiness level; demonstrate independence in gathering vocabulary knowledge when considering a word or phrase important to comprehension or expression. (Vocabulary Acquisition and Use) College and Career Readiness Anchor Standards for Reading CCR 01. Read closely to determine what the text says explicitly and to make logical inferences from it; cite specific textual evidence when writing or speaking to support conclusions drawn from the text. (Key Ideas and Details) CCR 02. Determine central ideas or themes of a text and analyze their development; summarize the key supporting details and ideas. (Key Ideas and Details) CCR 03. Analyze how and why individuals, events, and ideas develop and interact over the course of a text. (Key Ideas and Details) CCR 04. Interpret words and phrases as they are used in a text, including determining technical, connotative, and figurative meanings, and analyze how specific word choices shape meaning or tone.(Craft and Structure) CCR 08. Delineate and evaluate the argument and specific claims in a text, including the validity of the reasoning as well as the relevance and sufficiency of the evidence. (Integration of Knowledge and Ideas) CCR 10. Read and comprehend complex literary and informational texts independently and proficiently. (Range of Reading and Level of Complexity) College and Career Readiness Anchor Standards for Speaking and Listening CCR 01. Prepare for and participate effectively in a range of conversations and collaborations with diverse partners, building on others’ ideas and expressing their own clearly and persuasively. (Comprehension and Collaboration) CCR 04. Present information, findings, and supporting evidence such that listeners can follow the line of reasoning and the organization, development, and style are appropriate to task, purpose, and audience. (Presentation of Knowledge and Ideas) CCR 05. Make strategic use of digital media and visual displays of data to express information and enhance understanding of presentations. (Presentation of Knowledge and Ideas) College and Career Readiness Anchor Standards for Writing CCR 01 Write arguments to support claims in an analysis of substantive topics or texts using valid reasoning and relevant and sufficient evidence. (Text Types and Purposes) CCR 02 Write informative/explanatory texts to examine and convey complex ideas and information clearly and accurately through the effective selection, organization, and analysis of content. (Text Types and Purposes) CCR 04 Produce clear and coherent writing in which the development, organization, and style are appropriate to task, purpose, and audience. (Production and Distribution of Writing) CCR 06 Use technology, including the Internet, to produce and publish writing and to interact and collaborate with others. (Production and Distribution of Writing) CCR 07 Conduct short as well as more sustained research projects based on focused questions, demonstrating understanding of the subject under investigation. (Research to Build and Present Knowledge) CCR 08 Gather relevant information from multiple print and digital sources, assess the credibility and accuracy of each source, and integrate the information while avoiding plagiarism. (Research to Build and Present Knowledge) CCR 09 Draw evidence from literary or informational texts to support analysis, reflection, and research. (Research to Build and Present Knowledge) CCR 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. (Range of Writing) Science and Technology Literacy Standards (Grades 11-12) RST.11-12.1 Cite specific textual evidence to support analysis of science and technical texts, attending to important distinctions the author makes and to any gaps or inconsistencies in the account. RST.11-12.2 Determine the central ideas or conclusions of a text; summarize complex concepts, processes, or information presented in a text by paraphrasing them in simpler but still accurate terms.

RST.11-12.3 Follow precisely a complex multistep procedure when carrying out experiments, taking measurements, or performing technical tasks; analyze the specific results based on explanations in the text. RST.11-12.4 Determine the meaning of symbols, key terms, and other domain-specific words and phrases as they are used in a specific scientific or technical context relevant to grades 11-12 texts and topics. RST.11-12.7 Integrate and evaluate multiple sources of information presented in diverse formats and media (e.g., quantitative data, video, multimedia) in order to address a question or solve a problem. RST.11-12.9 Synthesize information from a range of sources (e.g., texts, experiments, simulations) into a coherent understanding of a process, phenomenon, or concept, resolving conflicting information when possible. Standard 1: Ecological, Social and Economic Systems Students develop knowledge of the interconnections and interdependency of ecological, social, and economic systems. Environment & Sustainability They demonstrate understanding of how the health of these systems determines the sustainability of natural and human communities at local, regional, national, and global levels. Financial Education Health and Physical Education Building Functions CC.9-12.F.BF.1b Combine standard function types using arithmetic operations. CC.9-12.F.BF.2 Build a function that models a relationship between two quantities. Write arithmetic and geometric sequences both recursively and with an explicit formula, use them to model situations, and translate between the two forms. Mathematics | Standards for Mathematical Practice Practice 1: Make sense of problems and persevere in solving them. Practice 3: Construct viable arguments and critique the reasoning of others. Practice 5: Use appropriate tools strategically. Mathematics Practice 6: Attend to precision. Quantities CC.9-12.N.Q.1 Use units as a way to understand problems and to guide the solution of multi-step problems; choose and interpret units consistently in formulas; choose and interpret the scale and the origin in graphs and data displays. CC.9-12.N.Q.3 Choose a level of accuracy appropriate to limitations on measurement when reporting quantities. Reasoning with Equations and Inequalities CC.9-12.A.REI.10 Understand that the graph of an equation in two variables is the set of all its solutions plotted in the coordinate plane, often forming a curve (which could be a line). Science - Next Generation - High School HS-ESS3 Earth and Human Activity. HS-ESS3-1. Construct an explanation based on evidence for how the availability of natural resources, occurrence of natural hazards, and changes in climate have influenced human activity. HS-ESS3-4. Evaluate or refine a technological solution that reduces impacts of human activities on natural systems.* HS-ETS1 Engineering Design HS-ETS1-1. Analyze a major global challenge to specify qualitative and quantitative criteria and constraints for solutions that account for societal needs and wants. Science HS-ETS1-3. Evaluate a solution to a complex real-world problem based on prioritized criteria and trade-offs that account for a range of constraints, including cost, safety, reliability, and aesthetics, as well as possible social, cultural, and environmental impacts. Science - Next Generation Standards (High School Science and Engineering Practices) Analyzing and Interpreting Data Analyze data using tools, technologies, and/or models (e.g., computational, mathematical) in order to make valid and reliable scientific claims or determine an optimal design solution. Evaluate the impact of new data on a working explanation and/or model of a proposed process or system.

Asking Questions and Defining Problems Ask Questions that arise from careful observation of phenomena, or unexpected results, to clarify and/or seek additional information. Ask Questions that arise from examining models or a theory, to clarify and/or seek additional information and relationships. Ask Questions to clarify and refine a model, an explanation, or an engineering problem. Constructing Explanations and designing Solutions Apply scientific ideas, principles, and/or evidence to provide an explanation of phenomena and solve design problems, taking into account possible unanticipated effects. Apply scientific reasoning, theory, and/or models to link evidence to the claims to assess the extent to which the reasoning and data support the explanation or conclusion. Construct and revise an explanation based on valid and reliable evidence obtained from a variety of sources (including students’ own investigations, models, theories, simulations, peer review) and the assumption that theories and laws that describe the natural world operate today as they did in the past and will continue to do so in the future. Developing and Using Models Develop a complex model that allows for manipulation and testing of a proposed process or system. Develop and/or use a model (including mathematical and computational) to generate data to support explanations, predict phenomena, analyze systems, and/or solve problems. Develop and/or use multiple types of models to provide mechanistic accounts and/or predict phenomena, and move flexibly between model types based on merits and limitations. Develop, revise, and/or use a model based on evidence to illustrate and/or predict the relationships between systems or between components of a system. Engaging in Argument from Evidence Compare and evaluate competing arguments or design solutions in light of currently accepted explanations, new evidence, limitations (e.g., trade-offs), constraints, and ethical issues. Construct, use, and/or present an oral and written argument or counter-arguments based on data and evidence. Evaluate competing design solutions to a real-world problem based on scientific ideas and principles, empirical evidence, and/or logical arguments regarding relevant factors (e.g. economic, societal, environmental, ethical considerations). Evaluate the claims, evidence, and/or reasoning behind currently accepted explanations or solutions to determine the merits of arguments. Evaluate a question to determine if it is testable and relevant. Ask and/or evaluate questions that challenge the premise(s) of an argument, the interpretation of a data set, or the suitability of a design Obtaining, Evaluating, and Communicating Information Communicate scientific and/or technical information or ideas (e.g. about phenomena and/or the process of development and the design and performance of a proposed process or system) in multiple formats (including orally, graphically, textually, and mathematically). Compare, integrate and evaluate sources of information presented in different media or formats (e.g., visually, quantitatively) as well as in words in order to address a scientific question or solve a problem. Critically read scientific literature adapted for classroom use to determine the central ideas or conclusions and/or to obtain scientific and/or technical information to summarize complex evidence, concepts, processes, or information presented in a text by paraphrasing them in simpler but still accurate terms. Gather, read, and evaluate scientific and/or technical information from multiple authoritative sources, assessing the evidence and usefulness of each source. Planning and Carrying Out Investigations Manipulate variables and collect data about a complex model of a proposed process or system to identify failure points or improve performance relative to criteria for success or other variables.

Plan an investigation or test a design individually and collaboratively to produce data to serve as the basis for evidence as part of building and revising models, supporting explanations for phenomena, or testing solutions to problems. Consider possible confounding variables or effects and evaluate the investigation’s design to ensure variables are controlled. Using Mathematics and Computational Thinking Use mathematical, computational, and/or algorithmic representations of phenomena or design solutions to describe and/or support claims and/or explanations. Grade 11 GLE Standards 1. CIVICS The student understands and applies knowledge of government, law, politics, and the nation's fundamental documents to make decisions about local, national, and international issues and to demonstrate thoughtful, participatory citizenship. 1.2 Understands the purposes, organization, and function of governments, laws, and political systems. 1.3 Understands the purposes and organization of international relationships and U.S. foreign policy. 2. ECONOMICS The student applies understanding of economic concepts and systems to analyze decision-making and the interactions between individuals, households, businesses, governments, and societies. 2.1 Understands that people have to make choices between wants and needs and evaluate the outcomes of those choices. 2.2 Understands how economic systems function. 2.3 Understands the government's role in the economy. Social Studies 2.4 Understands the economic issues and problems that all societies face. 3. GEOGRAPHY The student uses a spatial perspective to make reasoned decisions by applying the concepts of location, region, and movement and demonstrating knowledge of how geographic features and human cultures impact environments. 3.2 Understands human interaction with the environment. 4. HISTORY The student understands and applies knowledge of historical thinking, chronology, eras, turning points, major ideas, individuals, and themes in local, Washington State, tribal, United States, and world history in order to evaluate how history s 4.2 Understands and analyzes causal factors that have shaped major events in history. 5. SOCIAL STUDIES SKILLS The student understands and applies reasoning skills to conduct research, deliberate, form, and evaluate positions through the processes of reading, writing, and communicating. 5.1 Uses critical reasoning skills to analyze and evaluate positions. 5.3 Deliberates public issues.

21st Century Skills Check those that students will demonstrate in this course:

LEARNING & INNOVATION INFORMATION, MEDIA & TECHNOLOGY SKILLS LIFE & CAREER SKILLS Creativity and Innovation Information Literacy Flexibility and Adaptability Think Creatively Access and /evaluate Information Adapt to Change Work Creatively with Others Use and Manage Information Be Flexible Implement Innovations Media Literacy Initiative and Self-Direction Critical Thinking and Problem Solving Analyze Media Manage Goals and Time Reason Effectively Create Media Products Work Independently Use Systems Thinking Be Self-Directed Learners Information, Communications and Technology Make Judgments and Decisions (ICT Literacy) Social and Cross-Cultural Solve Problems Apply Technology Effectively Interact Effectively with Others Communication and Collaboration Work Effectively in Diverse Teams Communicate Clearly Productivity and Accountability Collaborate with Others Manage Projects Produce Results Leadership and Responsibility Guide and Lead Others Be Responsible to Others