NRCSD 7-12 Social Studies Curriculum - 12. E2 INDIVIDUALS AND BUSINESSES IN THE PRODUCT AND FACTOR MARKETS

12. E2 INDIVIDUALS AND BUSINESSES IN THE PRODUCT AND FACTOR MARKETS

Stage 1- Desired Results

Essential Questions

How do individuals and societies decide which goods and services to produce given limited resources?
How do the choices of buyers and sellers shape the supply and demand, market prices, and allocation of scarce resources in an economy?
How do businesses decide what to produce based on market prices, technology, and factor prices, and how do these decisions impact employment?

Enduring Understandings

Free enterprise is a pillar of the United States economy and is based on the principle that individuals and businesses are free to make their own economic choices as they participate in these markets. Individuals buy the goods and services that they desire from businesses in the product markets, and they contribute to producing these goods and services by supplying the resources that they own to businesses in the factor markets.

Common Core Standards and Performance Indicators:

Unifying Themes:

Time, Continuity, and Change (TCC)

Power, Authority, and Governance (GOV)

Civic Ideals and Practices (CIV)

Science, Technology, and Innovation (TECH)

Global Connections and Exchange (EXCH)

Social Studies Content Area Standards:

1. World History
2. Geography
3. Economics
4. Civics, Citizenship, and Government

Social Studies Practices (begin on page 3)

Common Core Learning Standards for Literacy in History/Social Studies, Science,and Technical Subjects (begins on page 76)

Knowledge & Skills

Students know that...

12.E2a Given that the resources of individuals (and societies) are limited, decisions as to what goods and services will be produced and to whom to sell one’s resources are driven by numerous factors, including a desire to derive the maximum benefit from and thus the most efficient allocation of those resources.

12.E2b The choices of buyers and sellers in the marketplace determine supply and demand, market prices, allocation of scarce resources, and the goods and services that are produced. In a perfect world, consumers influence product availability and price through their purchasing power in the product market. Product market supply and demand determine product availability and pricing.

12.E2c Businesses choose what to supply in the product market, based on product market prices, available technology, and prices of factors of production. The prices of those factors are determined based on supply and demand in the factor market. The supply and demand of each factor market is directly related to employment. Debates surround various ways to minimize unemployment (frictional, structural, cyclical).

Key Terms: Scarcity, supply, demand, needs, wants, goods, PPC curve, labor, capital, opportunity cost, aggregate demand, aggregate supply, consumer, produce, competition.

Stage 2- Assessment Evidence

Summative Tasks

Quizlet Questions (Great tool to use for quiz creation)

Scarcity and the factors of Production Quizzes