CTE Demonstrate knowledge of basic economic concepts

Post date: Sep 11, 2011 8:37:8 AM

Task 6120.034

Demonstrate knowledge of basic economic concepts and structures.

Definition

Demonstration should include

• • describing how consumers, businesses, and government decision-makers face scarcity of resources and must make trade-offs and incur opportunity costs

  • explaining that choices often have long-term unintended consequences

  • describing how effective decision-making requires comparing the additional costs (marginal costs) and additional benefits (marginal benefits)

  • identifying factors of production

  • comparing the characteristics of market, command, tradition, and mixed economies

  • identifying Adam Smith and describing the characteristics of a market economy.

Economics and Personal Finance Standards of Learning

EPF.1

The student will demonstrate knowledge of basic economic concepts and structures by

• 1. describing how consumers, businesses, and government decision makers face scarcity of resources and must make trade-offs and incur opportunity costs;

  2. explaining that choices often have long-term unintended consequences;

  3. describing how effective decision making requires comparing the additional costs (marginal costs) and additional benefits (marginal benefits);

  4. identifying factors of production;

  5. comparing the characteristics of market, command, tradition, and mixed economies; and

  6. identifying Adam Smith and describing the characteristics of a market economy.