High School Mandated Course Syllabus
Course Outline
Unit 1: An Introduction to Economics and Personal Finance (6 weeks)
Topic I: Basic Economic Concepts
A. Scarcity What is it? Why is it so important to economic thought?
B. Opportunity Cost Define and exemplify. Why can it never be avoided? 3. The economic way of thinking- i.e. There is no such thing as a free lunch.
C. Marginal analysis - marginal benefits and marginal cost
D. Production Possibilities Construct and interpret production possibilities schedules, and graphs; relate production possibilities curves to the issues of scarcity, choice and cost.
E. Functions of Any Economic System
1. Answering the questions: What to produce? How to produce? For whom to produce?
2. Four factors of production
a. land
b. labor
c. capital
d. entrepreneurs
3. Capitalism and Free Enterprise
4. Command
5. Traditional
Earning and Receiving Income
human capital
The job application process
Calculating a paycheck (Federal and State deductions)
Transfer payments (e.g., Social Security and Medicare)
payment methods
spending plan
leasing, borrowing to buy, and rent-to-own
What is credit? (credit card, installment credit, payday loans, service credit, predatory lending, costs of credit, creditworthiness, credit report, credit bureau, dealing with excessive debt)
savings goals (wealth) and savings plans (incl. employer-sponsored)
financial investments (savings accounts, money-market accounts, mutual funds, stocks, bonds)
risk (incl. diversification to reduce risk), return (simple interest, compound interest), and liquidity_
retirement plans (IRAs, 401ks)
budgeting
financial planning (goals, net worth, income/expense record, insurance plan, savings plan)
risk management (risk avoidance, risk control, and risk transfer through insurance)
legal contracts, consumer protection, and consumer rights and responsibilities
income taxes (wages/salaries, dividends, interest, capital gains, tips, commissions, profit, deductions, exemptions, tax credits)
sales and property taxes
Topic III: Demand, Supply, and Price Determination
A. Demand Define and illustrate demand through schedules andgraphs
1. Distinguish between change(s) in quantity demanded and change(s) in demand.
2. Examine the inverse relationship existing between quantities demanded and price. Evaluate the Law of Demand.
3. Identify and explain the variables which cause a change in demand.
4. Illustrate graphically a change in demand versus a change in quantity demanded.
B. Supply Define and illustrate supply through schedules and graphs
1. Distinguish between change(s) in quantity supplied and change(s) in supply.
2. Examine the direct relationship existing between quantities supplied and price. Evaluate the Law of Supply.
3. Identify and explain the variables which cause a change in supply.
4. Illustrate graphically a change in supply versus a change in quantity supplied.
C. Equilibrium Price and Quantity Define and illustrate equilibrium through schedules and graphs
1. Define and illustrate surpluses and shortages.
2. Define the effects of surpluses and shortages on prices and quantities.
3. Interpret the effects of a price floor and price ceiling on equilibrium price and quantity.
D. Supply and Demand in the labor market as key determinates of wages
1. The labor movement
2. Resolving labor and management
E. Government policy and market effects
1. regulations
2. taxes
F. Market failures
1. Lack of competition
2. Externalities
3. Resource immobility
4. public goods
Unit 2: Measurement of Economic Performance (4 weeks)
Topic I: Gross Domestic Product and National Income Concepts
A. Measuring GDP, 4-Sector Circular Flow Model, and Flow versus Stock
1. Expenditure Approach [C+I+G+(X-IM)] where
C = Personal Consumption Expenditures
I = Gross Private Investment
G = Government Consumption Expenditures and Gross
Investment
X-IM = Net Exports
2. Changing Nominal GDP (NGDP) to Real GDP (RGDP). How and why?
Topic II: Unemployment and Business Cycles
A. The Roller Coaster The four phases of the business cycle
B. Total Spending and How It Affects the Business Cycle
C. Unemployment Defined
D. Problems with the Unemployment Rate Who is counted and who isnt?
E. Types of Unemployment
1, frictional
2. structural
3. cyclical
F. Full Employment What is it?
G. The GDP Gap Explaining lost potential
Topic III: Inflation
A. The Meaning and Measurement of Inflation (CPI)
B. Consequences of Inflation: shrinking incomes, changes in wealth, effect on interest rates
Unit 3: Macroeconomic Theory and Policy (6 weeks)
Topic I: Keynesian Model in Action
A. Government Spending and How It Affects Aggregate Demand
B. Adding International Trade to the Aggregate Expenditure Model
C. Recessionary and Inflationary Gaps
Topic II: Aggregate Demand and Supply
A. Aggregate Demand Curve
B. Non-price-Level Determinants of Aggregate Demand
C. Aggregate Supply Curve
1. Classical view
2. Keynesian view
3. Changes in equilibrium price and quantity
D. Non-price-Level Determinants of Aggregate Supply
Topic III: Fiscal Policy/Public Sector
A. Discretionary Fiscal Policy
1. Changes in government spending
2. Changes in tax rates
3. Balanced-budget multiplier
B. Types of Taxation
1. Progressive
2. Proportional
3. Regressive
C. Federal Budget
1. Balanced budget, budget deficit, budget surplus
2. National debt
3. Should we worry about deficits or the debt?
Topic IV: Money, Banking, and Monetary Policy
A. Three Functions of Money
B. What Stands Behind the U.S. Dollar?
C. Money Supply Definitions
1. M1: most narrowly defined money supply
D. The Federal Reserve System (FED)
1. Origins and organizational structure
2. Powers of the FED
a. controlling the money supply
b. clearing checks
c. supervising and regulating the banks
d. accepts bank deposits and makes bank loans
e. acting as the bank for the U.S. government
3. Tools of the FED
a. open market operations
b. discount rate
c. reserve requirement
Unit 4: The International Economy (2 weeks)
Topic I: International Trade and Finance
A. Why Nations Trade at All
B. Comparative and Absolute Advantage
C. Free Trade versus Protectionism (trade barriers)
1. Arguments for free trade
2. Arguments against free trade
E. Exchange Rates
1. Supply and demand for foreign exchange
2. Current fluctuations
Topic II: Economic Growth
A. Productivity increases and economic growth result from investment in human capital and capital resources, research and development, technological change, and improved institutional arrangements and incentives.
B. Comparing Developed and Developing Countries
1. Classifying countries by GDP per capita
2. How to sustain economic growth in developing countries
3. Implications for a changing world