Pittsford Area Schools High School Economics Curriculum Map

Text: Economics- Principles in Action O’Sullivan, A. and Sheffrin, S. Prentice Hall (2001)

Economics is a one-semester course designed to enhance student understanding of “economic literacy”. These concepts become increasingly important as the interconnectedness of the world cannot be avoided. Students must be able to analyze individual and societal economic decisions to function as consumers, producers, savers, investors, and responsible citizens. (Adapted from the Michigan Department of Education K-12 Social Studies Standards)

Content and Text Connections State of Michigan Standards Vocabulary

S UNIT 1: Fundamentals of Economics 1.1.1 Chapter 1 E Chapter 1: What is Economics? Scarcity, choice, opportunity costs, Need Want incentives Economics Goods M Chapter 2: Economic Systems 1.1.2 Services Scarcity E Additional Topics: Entrepreneurship Shortage Land S Comparative and Absolute Trade Advantage 1.1.3 Labor Capital Developed and Developing/Transitional Countries Marginal analysis Factors of production Cost T Chapter 3: American Free Enterprise 1.4.2 Physical capital Human capital E Government and Consumers Entrepreneur Trade-off R 1.4.4 Guns or butter Opportunity costs

Market failure Thinking at the margin Efficiency 2.1.1 Production possibilities Underutilization C Circular flow and the national Law of increasing costs O economy

U 2.1.2 Chapter 2 Economic indicators R Economic system Factor payments 2.2.1 Safety net Market economy S Government involvement in the Standard of Living Traditional economy E economy Centrally planned economy Specialization 2.2.2 Mixed economy Firm Government revenue and services Market Profit 3.1.1 Household Self-interest Developing nations Factor market Competition

3.1.3 Product market Communism Comparing economic systems Incentive Collective 3.1.4 Invisible hand Laissez faire S Impact of transitional economies Consumer sovereignty Continuum E 3.2.1 Socialism Privatize M Absolute and comparative advantage Authoritarian 3.2.2 Heavy industry E Domestic activity and world trade Free enterprise S 3.2.3 Transition T Exchange rate and world trade E 3.2.4 Chapter 3 Global economy and the marketplace R Public interest Public policy 4.1.2 Buying goods and services Public disclosure laws In-kind benefits Cash transfers Public good C Market failure Private sector Public sector O U Externality

R

S Chapter 4 E UNIT 2: How Markets Work 1.3.1 Law of demand Inferior good Chapter 4: Demand Supply and demand Substitution effect Complements Chapter 5: Supply 1.3.2 Income effect Substitutes Price, equilibrium, elasticity, and Demand schedule Elasticity of demand Chapter 6: Prices incentives Market demand schedule Inelastic Chapter 7: Market Structures 1.2.2 Demand curve Elastic Market Structures Market demand curve Unitary elastic Ceteris paribus Total revenue 1.4.5 ​ Consequences of Government Policy Normal good 1.4.6 Price Controls Chapter 5 Law of supply Fixed cost Quantity supplied Variable cost Supply schedule Total cost Variable Marginal cost Market supply schedule Marginal revenue Supply curve Operating cost Market supply curve Subsidy Elasticity of supply Excise tax Marginal product of labor Regulation Increasing marginal returns Diminishing marginal returns Chapter 6 S Equilibrium Surplus Disequilibrium Shortage E Excess demand Search costs M Excess supply Supply shock E Price ceiling Rationing Price floor Black market S Rent control Spillover costs T (externalities) E END OF QUARTER ______R ______

Chapter 7 C Perfect competition Monopolistic competition

O Commodity Differentiation Barrier to entry Nonprice competition U Imperfect competition Oligopoly R Start-up costs Price war S Monopoly Collusion

E Economies of scale Price fixing Natural monopoly Cartel

Government monopoly Predatory pricing Patent Antitrust laws

Franchise Trust License Merger

Price discrimination Deregulation

Market price

UNIT 3: Money, Banking, and Finance Chapter 10 - Section 3 1.2.1 Liquidity Chapter 10: Money and Banking Institutions Demand deposit (Section 3) 4.1.3 Money market

Use of Interest Calculators (Saving and Saving Default

Borrowing) 4.1.4 Mortgage Using Credit Credit card Chapter 11: Financial Markets 4.1.5 Debit card Financial Investing Interest

Additional Activity: Principal Creditor Stock Market Project (online resource)

Chapter 11 Investment Share Financial system Equities S Financial asset Capital gain E Financial intermediary Capital loss M Mutual fund Stock split Diversification Stockbroker E Portfolio Brokerage firm S Prospectus Stock exchange T Return NASDAQ E Coupon rate OTC market Maturity Futures R Par value Options Yield Call option C Savings bond Put option Municipal bond Bull market O Corporate bond Bear market U Securities and Exchange Commission The Dow R Junk bond S&P 500 S Capital market Speculation Primary market E Secondary market

UNIT 4: Introduction to 1.4.1 Macroeconomics (11 Concepts) Public Policy and the Market Chapter 12 Chapter 12 : GDP 1.4.3 GDP Peak Government revenue and services Nominal GDP Contraction Chapter 13: Unemployment 2.2.3 Real GDP Trough Chapter 14: Taxes and Government Fiscal policy and its consequences Per capita GDP Recession Spending (Sections 1 and 4) 2.2.3 Aggregate demand Depression Chapter 15: Fiscal Policy Federal Reserve and monetary policy Aggregate supply Stagflation Business cycle Keynesian economics (Sections 1 and 3) Expansion Chapter 16: Federal Reserve Economic growth

and Monetary Policy

(Section 1)

Additional Resources: Powerpoint / Slides presentation and Chapter 13 Frictional unemployment Inflation related activities) Seasonal unemployment CPI Structural unemployment Inflation rate Cyclical unemployment Demand-pull inflation Unemployment rate Cost-push inflation Full employment Discouraged worker

Chapter 14 Tax Individual income tax Regressive tax Sales tax Operating budget Property tax Capital budget Corporate income tax Balanced budget Proportional tax Progressive tax

Chapter 15 Fiscal policy Contractionary policies Federal budget Budget surplus Appropriations bill Budget deficit Expansionary policies National debt

Chapter 16 Federal Reserve Monetary policy Board of Governors

Additional Vocabulary: Real prices Nominal prices

UNIT 5: Insurance 4.1.6 Protecting and insuring Vocabulary: Powerpoint / Slides presentation and Risk Medical payment insurance Shared risk Uninsured/underinsured motorist related activities) Policy Collision coverage Policyholder Comprehensive coverage Premium Co-pay Deductible Co-insurance Actuary Beneficiary Automobile insurance Dependent Health insurance Term life Life insurance Whole life Disability insurance Peril homeowners/renters insurance Property insurance Liability

Unit 6: Budget Basics 4.1.1 Vocabulary Alternative materials Career FICA Withholding Social Security Taxable income Medicare Personal exemption Mortgage Deductions Loan