Unpacked Content
Knowledge
Students know:
- The advantages and disadvantages of the three major forms of business organization.
- The characteristics of each type of competition.
- How oligopolies are formed.
- The different types of monopoly.
- The meaning of the profit motive and how it impacts production decisions.
- How businesses invest using equity financing, borrowing and saving.
- The advantages and disadvantages of each method of raising money for investment.
- How businesses compete through pricing and marketing.
- The different types of economic institutions and their goals.
Skills
Students are able to:
- Identify the characteristics of the basic forms of business organization and determine the appropriate form of organization for different situations.
- Identify and construct a perfectly competitive market graph (supply and demand graph).
- Calculate examples of diminishing returns.
- Draw short run and long run ATC curves.
Understanding
Students understand that:
- Different forms of business organization may be appropriate depending on the type of good or service to be produced.
- Different methods of raising money for investment are appropriate depending on the goals of the business.
- There are many ways in which businesses compete depend on the type of industry structure.
- The actions of economic institutions impact market outcomes.
Vocabulary
- sole proprietorship
- partnership
- corporation
- stock
- bond
- pure competition (perfect competition)
- monopoly
- patents
- copyrights
- trademarks
- monopolistic competition
- oligopoly
- collusion
- vertical merger
- horizontal merger
- law of diminishing returns
- economies of scale
- diseconomies of scale
- short run
- long run
