Unpacked Content
Knowledge
Students know:
- The following economies answers the three basic questions:
- Traditional Economy
- Goods are produced for the community based on traditional needs.
- Individuals produce goods based on custom.
- They produce for themselves and the community.
- Market Economy
- Goods are produced based on consumer demand.
- Individuals and businesses are free to choose how items are produced.
- Goods are produced for the customer in hopes of gaining a profit.
- Command Economy
- The government decides what goods will be produced.
- The government decides how goods will be produced.
- Goods are produced for the purposes of the government.
- Traditional Economy
- The U.S. economy is based on principles of free market. Due to the effect of government policies and regulations, the U.S. economy resembles a Mixed Economy. U.S. laws that protect employees include minimum wage, safe work conditions, and child labor laws. Some U.S. laws that protect the consumers are food labeling requirements and safety features on cars. Consumers who have problems with products can register complaints with the government or seek recourse under the judicial system.
- The U.S. stock market is a gauge of U.S. economic health. When the stock market is strong, it influences businesses to invest and expand (increase in profit leads to employment, rise in consumer confidence ) When the stock market is weak, businesses are less likely to take risks which can affect the overall economic health of our country (loss of revenue, rise in unemployment rate, fewer new businesses created). Consumer behavior influences the fluctuation in the stock market.
- The consumer is influenced by the following:
- Scarcity- is a shortage or limited amount of resources like time, money, land, labor, capital et al.
- Trade-off decisions- the alternative you face if you decide to do one thing rather than another. (Example: A farmer can grow corn or cotton. A student can attend University of South Alabama or University of North Alabama)
- Opportunity cost — the cost of the next best use of resources when choosing to do one thing or another. (Example: Because the farmer grows corn, he cannot grow cotton. Because the student choose to go University of South Alabama, he does not cannot go to University of North Alabama).
Skills
Students are able to:
- Define Traditional Economy, Market Economy, Command Economy, and Mixed Economy.
- Understand how each Economy answers the three basic economic questions.
- Identify the U.S. economic system.
- Explain how the stock market impacts the Marketplace.
- Relate the ideas of scarcity, opportunity cost and trade-off decisions to the consumer's role in the Marketplace.
Understanding
Students understand that:
- Scarcity, opportunity costs, and trade-off decisions influence the consumer's behavior causing changes in the marketplace and the U.S. stock market.
Vocabulary
- supply and demand
- free enterprise
- market economy
- command economy
- traditional economy
- mixed economy
- good
- service
- scarcity
- opportunity cost
- trade-off decision making
- stock market
- policy
- regulations
