Unit I

Basic Economic Concepts

Days

(2 Weeks)

Chapter 1 Learning Objectives

• Define economics and the features of the economic perspective
• Describe the role of economic theory in economics
• Distinguish microeconomics from macroeconomics and positive economics from normative economics
• Explain the individual’s economizing problem and how trade-offs, opportunity costs and attainable combinations can be illustrated with budget lines
• List the categories of scarce resources and delineate the nature of society’s economizing problem
• Apply production possibilities analysis, increasing opportunity costs and economic growth
• Explain how economic growth and international trade increase consumption possibilities

Chapter 2 Learning Objectives

• Differentiate between laissez-faire capitalism, the command system, and the market system
• List the main characteristics of the market system
• Explain how the market system answers the five fundamental economic questions of what to produce, how to produce, who obtains the output, how to adjust to change, and how to promote progress.
• Explain the operation of the “invisible hand” and why market economies usually do a better job than command economies at efficiently transforming economic resources into desirable output
• Describe the mechanics of the circular flow model.
• Explain how the market deals with risk

Textbook Reading Sections

McConnell/Brue Chapter 1 Introduction to Economics and the Economy p. 1 -20

McConnell/Brue Chapter 2 The Market System and Circular Flow. p. 27-46

Graphing and Data Analysis Assignments

McConnell/Brue Focus Review Guide Chapter 1 - p, 1-8

McConnell/Brue Focus Review Guide Chapter 2 - p. 9-12

Supplemental Assignments

Suze Orman article

Orman Article Questions

Opportunity Cost reading with questions

The Problem With Inequality, According to Adam Smith article - The Atlantic

The Invisible Hand Is Shaking article – The New York Times

Unit Notes

Chapter 1 Notes

Chapter 2 Notes

Summative Assessments

Chapter Quizzes

Multiple Choice Exam