Unit 1 - Basics of Market Economies
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Overview: What is the economy?
This unit serves as an introduction to the study of economics and aims to develop students' understanding of the economic way of thinking. Students will explore fundamental economic principles and concepts, such as scarcity, opportunity cost, supply and demand, and factors of production. Through engaging lessons, simulations, and activities, students will gain a comprehensive understanding of how individuals, households, businesses, and governments make choices and allocate resources within an economic system. By the end of this unit, students will have developed a solid understanding of the economic way of thinking and its influence on decision-making at various levels. They will be equipped with the knowledge and skills to evaluate opportunity costs, make informed choices, and analyze the factors that drive economic activity. This introductory unit sets the foundation for further exploration of economic concepts in the Personal Financial Literacy course.
The highlighted evidence outcomes are the priority for all students, serving as the essential concepts and skills. It is recommended that the remaining evidence outcomes listed be addressed as time allows, representing the full breadth of the curriculum.
Students Can (Evidence Outcomes):
Explain the economic way of thinking: the condition of scarcity requires choice and choice has a cost (opportunity cost). (5.1.a)
Analyze how the principles of economic thinking influence the choices made by individuals, households, businesses, and governments. Including but not limited to: cost vs. benefits, thinking at the margin, incentives matter, trade makes people better off, and future consequences count. (5.1.b)
Analyze how factors of production (land, labor, capital) are brought together to produce goods and services in an economic system. (5.1.c)
Prepared Graduates
Prepared Graduates
Evaluate how scarce resources are allocated in societies through analysis of individual choice, market interaction, and public policy.
Grade Level Standard(s)
Analyze how the scarcity of productive resources (land, labor, capital) forces choices to be made about how individuals, households, businesses, and governments allocate these resources. (3.1)
Apply knowledge and skills to analyze how individuals, businesses, and governments deal with the challenges of scarcity (Self-Management, Social Awareness, Global and Cultural Awareness).
Identify the incentives that influence individuals, families, businesses, and governments, and draw conclusions based on cost-benefit analysis (Critical Thinking and Analysis).
Economic thinkers realize that, due to scarcity, we must make choices which involve the prioritization of alternatives.
Economic thinkers assume that every choice, whether by families, governments, businesses, or individuals, has an opportunity cost.
Economic thinkers understand that, using the economic way of thinking, individuals analyze how the benefit of using productive resources for a particular purpose compares with the opportunity cost of this resource use
Inquiry Questions
How does the condition of scarcity affect our decision-making, whether individually or collectively?
How might policy makers incentivize potential entrepreneurs to address issues of scarcity through innovation and creativity?
How is marginal thinking used to make decisions?
How are incentives influenced by values? For example: Ethics, religious beliefs, cultural values.
Disciplinary, Informational and Media Literacy
Read for a specific purpose (i.e., detect cause-and-effect relationships, compare and contrast information, identify fact vs. opinion, and author bias).
Process or synthesize information through writing using note-taking, graphic organizers, summaries, proper sequencing of events, and/or formatting thesis statements that examine why as well as how.
Create, interpret, and analyze graphs, charts, and diagrams.
Academic Vocabulary and Language Expectations:
Academic Vocabulary and Language Expectations:
Scarcity, marginal costs / marginal benefits, income and profit, entrepreneur, human capital, opportunity cost, supply vs. demand, circular flow model
Possible Assessments:
Possible Assessments:
Assessment and lesson ideas found in the etext
Instructional Resources
Instructional Resources
Student PFL eText pages 1-14
Teacher Google Slides 1-35
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