Courses of Study : Social Studies

Social Studies (2010)
Grade(s): 12
Economics
All Resources: 2
Classroom Resources: 2
1 ) Explain why productive resources are limited and why individuals, businesses, and governments have to make choices in order to meet needs and wants.

•  Explaining scarcity as a basic condition that exists when unlimited wants exceed limited productive resources
•  Explaining land (an example of a natural resource), labor (an example of a human resource), capital (an example of a physical or human resource), and entrepreneurship to be the factors of production
•  Explaining opportunity cost as the next best alternative to relinquish when individuals, businesses, and governments confront scarcity by making choices
Unpacked Content
Strand: Economics
Course Title: Economics
Evidence Of Student Attainment:
Students:
  • Calculate opportunity costs.
  • Make decisions based on the marginal costs and marginal benefits.
  • Categorize examples of productive resources.
Teacher Vocabulary:
  • scarcity
  • opportunity cost
  • trade-off
  • marginal analysis
  • marginal benefit
  • marginal cost
  • land
  • labor
  • capital
  • entrepreneurial ability
Knowledge:
Students know:
  • Scarcity forces us to choose.
  • All choices involve opportunity costs.
  • Resources are necessary to produce goods and services.
  • How marginal analysis leads to rational decisions.
  • How to classify resources.
Skills:
Students are able to:
  • Calculate opportunity costs.
  • Correctly determine whether a particular decision should be made based on the marginal costs and marginal benefits.
  • Categorize examples of productive resources.
Understanding:
Students understand that:
  • Limited resources lead people to make choices.
  • Marginal analysis leads to optimal decision-making.
Alabama Alternate Achievement Standards
AAS Standard:
SS.E.AAS.12.1- Define scarcity, land, and opportunity costs; understand the concepts of resources and wants and needs; recognize that productive resources are limited and why individuals, businesses, and governments have to make choices in order to meet needs and wants.
SS.E.AAS.12.1a - Categorize examples of productive resources.
Social Studies (2010)
Grade(s): 12
Economics
All Resources: 0
2 ) Explain how rational decision making entails comparing additional costs of alternatives to additional benefits.

•  Illustrating on a production-possibilities curve how rational decision making involves trade-offs between two options
•  Explaining rational decision making as the comparison between marginal benefits and marginal costs of an action
Unpacked Content
Strand: Economics, Civics and Government
Course Title: Economics
Evidence Of Student Attainment:
Students:
  • Make decisions based on the marginal costs and marginal benefits.
  • Determine production outcomes and calculate opportunity costs using a production-possibilities curve.
  • Determine efficient, inefficient and unattainable points on a production-possibilities curve.
Teacher Vocabulary:
  • marginal analysis
  • marginal benefit
  • marginal cost
  • production-possibilities curve
Knowledge:
Students know:
  • Rational decision-making requires comparison of marginal costs and marginal benefits.
  • The assumptions made in constructing production- possibilities tables and curves.
  • The efficient, inefficient and unattainable points on a production-possibilities curve.
Skills:
Students are able to:
  • Use marginal costs and marginal benefits to make decisions.
  • Use a production-possibilities curve to determine possible combinations of goods and services that can be produced.
  • Use a production-possibilities curve to calculate opportunity costs.
  • Determine efficient, inefficient and unattainable points on a production-possibilities curve.
Understanding:
Students understand that:
  • Marginal analysis is necessary to rational decision-making.
  • Scarcity leads to limited production possibilities.
  • There are efficient, inefficient and unattainable points on a production-possibilities curve.
Alabama Alternate Achievement Standards
AAS Standard:
SS.E.AAS.12.2- Understand the concepts of costs and benefits; identify the trade-offs involved in economic decisions; recognize the associated costs and benefits of a given situation.
Social Studies (2010)
Grade(s): 12
Economics
All Resources: 2
Classroom Resources: 2
3 ) Describe different economic systems used to allocate scarce goods and services.

•  Defining command, market, and mixed economic systems
•  Describing how different economic systems answer the three basic economic questions of what to produce, how to produce, and for whom to produce
•  Evaluating how each type of system addresses private ownership, profit motive, consumer sovereignty, competition, and government regulation
Unpacked Content
Strand: Economics, Civics and Government
Course Title: Economics
Evidence Of Student Attainment:
Students:
  • Identify economic systems from their characteristics.
  • Identify economic systems from the ways that they make the basic economic choices.
Teacher Vocabulary:
  • Adam Smith
  • invisible hand
  • laissez faire economics
  • command economy
  • market economy (free enterprise or capitalism)
  • traditional economy
  • mixed economy
  • consumer sovereignty
  • voluntary exchange
Knowledge:
Students know:
  • The characteristics of each basic type of economic system.
  • The three basic economic choices.
  • How each the three basic economic choices are made in the different types of economic systems.
Skills:
Students are able to:
  • Identify examples of different types of economic systems.
Understanding:
Students understand that:
  • There are specific roles for consumers, businesses and government in each type of economic system.
  • Each type of system responds to and incorporates change.
  • The type of economic system impacts economic growth.
Alabama Alternate Achievement Standards
AAS Standard:
SS.E.AAS.12.3- Understand that economic systems answer the three basic economic questions of what to produce, how to produce, and for whom to produce; identify how the three basic economic questions are answered in a mixed market economy.
SS.E.AAS.12.3a - Identify examples of different types of economic systems.
Social Studies (2010)
Grade(s): 12
Economics
All Resources: 2
Classroom Resources: 2
4 ) Describe the role of government in a market economy, including promoting and securing competition, protecting private property rights, promoting equity, providing public goods and services, resolving externalities and other market failures, and stabilizing growth in the economy.

•  Explaining how government regulation and deregulation policies affect consumers and producers
Unpacked Content
Strand: Economics, Civics and Government
Course Title: Economics
Evidence Of Student Attainment:
Students:
  • Classify government activities as specific examples of the government's role in the economy.
  • Explain how specific government actions impact economic growth.
Teacher Vocabulary:
  • positive externalities (spillover benefits)
  • negative externalities (spillover costs)
  • public goods and services
  • tragedy of the commons
Knowledge:
Students know:
  • The roles of government in a market economy.
  • The purpose of each of the government's roles in a market economy.
  • How to identify examples of the government acting in each of its roles in a market economy.
  • The different types of market failures.
Skills:
Students are able to:
  • Identify the ways in which governments, including the United States government, participate in the economy.
  • Determine the impact of government actions in the market.
Understanding:
Students understand that:
  • There are specific causes market failures.
  • Government action can sometimes correct for failures of private markets.
  • Government actions impact the market.
Alabama Alternate Achievement Standards
AAS Standard:
SS.E.AAS.12.4- Recognize the role of the government in a market economy; recognize examples of how the government is involved in the economy.
SS.E.AAS.12.4a- Classify government activities as specific examples of the government's role in the economy.
Social Studies (2010)
Grade(s): 12
Economics
All Resources: 1
Lesson Plans: 1
5 ) Explain that a country's standard of living depends upon its ability to produce goods and services.

•  Explaining productivity as the amount of outputs, or goods and services, produced from inputs, or factors of production
•  Describing how investments in factories, equipment, education, new technology, training, and health improve economic growth and living standards
Unpacked Content
Strand: Economics, Civics and Government
Course Title: Economics
Evidence Of Student Attainment:
Students:
  • Calculate nominal GDP.
  • Calculate real GDP.
Teacher Vocabulary:
  • gross domestic product (GDP)
  • nominal GDP
  • real per capita GDP
  • GDP deflator
  • Bureau of Economic Analysis
  • productivity
  • input
  • output
  • Rule of 70
Knowledge:
Students know:
  • The four components of the expenditure approach to GDP.
  • How productivity is calculated.
  • How productivity can be increased.
  • The factors that lead to economic growth.
Skills:
Students are able to:
  • Calculate GDP.
  • Use a GDP deflator to calculate real GDP.
Understanding:
Students understand that:
  • The BEA categorizes the four components of the expenditure approach to GDP.
  • Investment leads to increased productivity and economic growth.
  • Increases in productivity lead to a higher standard of living
  • There are specific factors that lead to increased productivity.
Alabama Alternate Achievement Standards
AAS Standard:
SS.E.AAS.12.5- Understand the concepts of economic growth and standard of living; recognize ways to encourage economic growth.
Social Studies (2010)
Grade(s): 12
Economics
All Resources: 2
Classroom Resources: 2
6 ) Describe how specialization and voluntary exchange between buyers and sellers lead to mutually beneficial outcomes.

•  Illustrating on a circular-flow diagram the product market; the factor market; the real flow of goods and services between and among businesses, households, and government; and the flow of money
•  Constructing examples of specialization and exchange
•  Illustrating on a table and graph the law of supply and demand
•  Describing the role of buyers and sellers in determining market clearing price
•  Illustrating on a table and graph how supply and demand determine equilibrium price and quantity
•  Illustrating on a graph of supply and demand how price movements eliminate shortages and surpluses
•  Illustrating on a graph how different factors cause changes in a market supply and demand
•  Explaining how prices serve as incentives in a market economy
Unpacked Content
Strand: Economics
Course Title: Economics
Evidence Of Student Attainment:
Students:
  • Create supply and demand graphs.
  • Graph changes in supply and demand and the resulting changes in price and quantity.
  • Distinguish between shifts of the curves and movements along the curves.
  • Determine whether demand and supply are elastic or inelastic.
  • Calculate the amounts of surpluses and shortages.
Teacher Vocabulary:
  • supply
  • demand
  • marginal utility
  • specialization
  • division of labor
  • equilibrium/market-clearing price
  • price elasticity
  • shortage
  • surplus
  • price floor
  • price ceiling
Knowledge:
Students know:
  • The determinants of demand (demand shifters).
  • The determinants of supply (supply shifters).
  • The role of market prices and the impact of government-imposed prices.
  • The determinants of price elasticity.
  • The total revenue test to determine price elasticity of demand.
  • The components of the circular flow diagram and how they interact.
Skills:
Students are able to:
  • Construct supply and demand curves.
  • Correctly shift supply and demand curves based on changes in their determinants.
  • Distinguish between shifts of the curves and movements along the curves.
  • Determine whether demand and supply are elastic or inelastic.
  • Determine the amounts of surpluses and shortages created by prices that are not at the equilibrium level.
Understanding:
Students understand that:
  • There are ways in which the determinants impact market supply and demand.
  • Changes in supply and demand affect prices and equilibrium quantity.
  • There are differences between shifts of the curves caused by the determinants and movements along the curves caused by price changes.
  • Prices determine how resources are allocated.
  • Activities in markets, businesses and households impact each other.
Alabama Alternate Achievement Standards
AAS Standard:
SS.E.AAS.12.6- Understand the concept of specializing and voluntary exchange between buyers and sellers; recognize the process of producing, selling, and buying goods and services in a market economy.
SS.E.AAS.12.6a - Construct supply and demand curves.
Social Studies (2010)
Grade(s): 12
Economics
All Resources: 1
Classroom Resources: 1
7 ) Describe the organization and role of business.

•  Comparing types of business firms, including sole proprietorships, partnerships, and corporations
•  Explaining the role of profit as an incentive, including short-term versus long-run decisions, for all firms
•  Describing basic characteristics of pure competition, monopoly, monopolistic competition, and oligopoly
•  Explaining ways firms finance operations, including retained earnings, stocks, and debt, and the advantages and disadvantages of each
•  Explaining ways firms engage in price and nonprice competition
•  Recognizing the role of economic institutions, including labor unions and nonprofit organizations, in market economies
Unpacked Content
Strand: Economics
Course Title: Economics
Evidence Of Student Attainment:
Students:
  • Identify the characteristics of the basic forms of business organization and determine the appropriate form of organization for different situations.
  • Construct perfectly competitive market graphs.
  • Calculate diminishing returns.
  • Construct both short run and long run ATC curves.
Teacher 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
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.
Alabama Alternate Achievement Standards
AAS Standard:
SS.E.AAS.12.7- Understand the role of businesses in a market economy; recognize that businesses are important in the distribution of goods and services; recognize different business types and the goods and services they sell to consumers.
Social Studies (2010)
Grade(s): 12
Economics
All Resources: 1
Classroom Resources: 1
8 ) Explain the impact of the labor market on the United States' economy.

•  Identifying regional characteristics of the labor force of the United States, including gender, race, socioeconomic background, education, age, and regional specialization
•  Explaining how supply of and demand for labor affect wages
•  Describing characteristics that are most likely to increase wage and nonwage benefits, including skill, productivity, education, occupation, and mobility
•  Explaining how unemployment and inflation impose costs on individuals and nations
•  Determining the relationship of Alabama and the United States to the global economy regarding current technological innovations and industries (Alabama)
Examples: World Wide Web, peanut industry, telecommunications industry, aerospace industry

•  Tracing the history of labor unions and methods of contract negotiation by labor and management (Alabama)
Unpacked Content
Strand: Economics, History, Civics and Government
Course Title: Economics
Evidence Of Student Attainment:
Students:
  • Construct labor market graphs, and indicate the impact on employment and wages of the determinants of labor supply and demand.
  • Assess the economic impact of inflation and unemployment on the economy.
  • Use the Phillips curve to calculate trade-offs between inflation and unemployment.
Teacher Vocabulary:
  • inflation
  • unemployment rate
  • labor force
  • labor productivity
  • Philips curve
  • Misery index
  • stagflation
Knowledge:
Students know:
  • The factors that affect labor productivity and wages.
  • The factors that affect the supply of and demand for labor.
  • How the Phillips curve reflects trade-offs between inflation and unemployment.
  • The impact of demographics and regional specialization on wages and employment.
  • The non-market factors that affect wages, such as discrimination.
  • The overall economic impact of inflation and unemployment.
  • The role of Alabama in the national and global economies.
Skills:
Students are able to:
  • Determine how certain factors impact wages and employment.
  • Determine specific impacts on economic growth of inflation and unemployment.
  • Use the Phillips curve to calculate trade-offs between inflation and unemployment.
Understanding:
Students understand that:
  • There are certain factors that affect labor productivity and wages.
  • There are certain factors that affect the supply of and demand for labor.
  • There are trade-offs between inflation and unemployment reflected on the Phillips curve.
  • Demographics and regional specialization, as well as productivity, affect wages and employment.
  • Non-market factors also impact wages.
  • Inflation and unemployment negatively impact economic growth.
  • Economic interdependence in Alabama impacts and is impacted by the national and global economies.
Alabama Alternate Achievement Standards
AAS Standard:
SS.E.AAS.12.8- Define labor; recognize that labor is an essential part of the economic system; identify characteristics that are most likely to increase wages and benefits.
Social Studies (2010)
Grade(s): 12
Economics
All Resources: 3
Classroom Resources: 3
9 ) Describe methods used to measure overall economic activity, including the Gross Domestic Product (GDP), the Consumer Price Index (CPI), inflation, and unemployment.

•  Explaining how overall levels of income, employment, and prices are determined by spending decisions of households, businesses, and government; net exports in the short run; and production decisions of firms and technology in the long run
•  Identifying structural, cyclical, and frictional unemployment
•  Describing stages of the business cycle and how employment and inflation change during those stages
Unpacked Content
Strand: Economics, Civics and Government
Course Title: Economics
Evidence Of Student Attainment:
Students:
  • Determine the portion of the business cycle represented by certain economic indicators.
  • Identify examples of each type of unemployment.
  • Calculate the unemployment rate.
  • Calculate inflation using the CPI.
Teacher Vocabulary:
  • GDP
  • CPI
  • cost-push inflation
  • demand-pull inflation
  • hyperinflation
  • unemployment rate
  • Bureau of Labor Statistics
  • cyclical unemployment
  • frictional unemployment
  • structural unemployment
  • full employment
  • recession
  • expansion
  • peak
  • trough
Knowledge:
Students know:
  • The basic economic indicators: GDP, CPI and unemployment.
  • The parts of the business cycle.
  • The characteristics of each part of the business cycle.
  • The different types of inflation.
  • The different types of unemployment.
  • The types of unemployment included in full employment.
Skills:
Students are able to:
  • Determine the portion of the business cycle represented by certain economic indicators.
  • Identify examples of each type of unemployment.
  • Calculate the unemployment rate.
  • Calculate the inflation rate using the CPI.
Understanding:
Students understand that:
  • Each of the basic economic indicators change for specific reasons.
  • There are specific causes of the different types of inflation.
  • There are causes of each type of unemployment.
  • There are specific reasons that economic activity changes over time.
Alabama Alternate Achievement Standards
AAS Standard:
SS.E.AAS.12.9- Identify ways the economy is measured and activities associated with a strong economy.
SS.E.AAS.12.9a - Calculate the unemployment rate.
Social Studies (2010)
Grade(s): 12
Economics
All Resources: 1
Classroom Resources: 1
10 ) Explain the structure, role, and functions of the United States Federal Reserve System.

•  Describing how the United States Federal Reserve System oversees the banking system and regulates the quantity of money in the economy
•  Defining monetary policy
•  Describing how the central bank uses its tools of monetary policy to promote price stability, full employment, and economic growth
Unpacked Content
Strand: Economics, Civics and Government
Course Title: Economics
Evidence Of Student Attainment:
Students:
  • Determine the specific economic impact of changes in the reserve ratio.
  • Determine the specific economic impact of changes in the discount rate.
  • Determine the specific economic impact of open market operations to influence the federal funds rate.
  • Determine the appropriate monetary policy to promote employment.
  • Determine the appropriate monetary policy to combat inflation.
Teacher Vocabulary:
  • monetary policy
  • reserve ratio (reserve requirement)
  • fractional reserve banking
  • discount rate
  • deposit multiplier (deposit expansion
  • multiplier /simple money multiplier)
  • open-market operations
  • federal funds rate
  • easy-money policy (expansionary)
  • tight-money policy (contractionary)
Knowledge:
Students know:
  • The functions of money: medium of exchange, unit of account (measure of value), and store of value.
  • The role of the Federal Reserve in the United States' economy.
  • The 3 primary monetary policy tools: reserve ratio, discount rate, and open market operations to influence the federal funds rate.
  • How the 3 primary monetary policy tools impact the money supply and the overall economy.
Skills:
Students are able to:
  • Determine the specific economic impact of changes in the reserve ratio.
  • Determine the specific economic impact of changes in the discount rate.
  • Determine the specific economic impact of open market operations on the federal funds rate.
  • Determine the appropriate monetary policy to promote employment.
  • Determine the appropriate monetary policy to combat inflation.
Understanding:
Students understand that:
  • Money functions to increase trade.
  • Monetary policy tools are used to promote employment and economic growth.
  • Monetary policy tools are used to combat inflation.
  • The Federal Reserve has a role in controlling the money supply.
Alabama Alternate Achievement Standards
AAS Standard:
SS.E.AAS.12.10- Define the United States Federal Reserve System and describe its purpose.
SS.E.AAS.12.10a - Define monetary policy.
Social Studies (2010)
Grade(s): 12
Economics
All Resources: 2
Classroom Resources: 2
11 ) Explain how the government uses fiscal policy to promote the economic goals of price stability, full employment, and economic growth.

•  Defining fiscal policy and the use of taxation and government purchases
•  Comparing government deficits and the national debt
Unpacked Content
Strand: Economics, Civics and Government
Course Title: Economics
Evidence Of Student Attainment:
Students:
  • Determine the specific economic impact of changes in the government spending.
  • Determine the specific economic impact of changes in the tax rate.
  • Determine the appropriate fiscal policy to promote employment.
  • Determine the appropriate fiscal policy to combat inflation.
Teacher Vocabulary:
  • fiscal policy
  • Keynesian
  • deficit
  • crowding out effect
  • surplus
  • debt
  • expansionary policy
  • contractionary policy
  • multiplier effect
  • automatic stabilizers
Knowledge:
Students know:
  • The role of Congress and the President in promoting economic stability through the use of discretionary fiscal policy.
  • Government spending and taxes act automatically to help stabilize the economy.
  • The two fiscal policy tools: government spending and taxes.
Skills:
Students are able to:
  • Determine the specific economic impact of changes in government spending.
  • Determine the specific economic impact of changes in the tax rate.
  • Determine the appropriate fiscal policy to promote employment.
  • Determine the appropriate fiscal policy to combat inflation.
Understanding:
Students understand that:
  • Taxes and government spending impact the overall economy, both through discretionary fiscal policy and automatic stabilizers.
  • Fiscal policy tools are used to promote employment and economic growth.
  • Fiscal policy tools are used to combat inflation.
Alabama Alternate Achievement Standards
AAS Standard:
SS.E.AAS.12.11- Understand the concepts of price stability, full employment, and economic growth.
Social Studies (2010)
Grade(s): 12
Economics
All Resources: 0
12 ) Explain why individuals, businesses, and governments trade goods and services in the global economy.

•  Defining absolute advantage and comparative advantage
•  Explaining how gains from trade, whether between two individuals or two countries, are based on the principle of comparative advantage
•  Defining exchange rates
•  Explaining how changes in exchange rates impact purchasing powers of individuals and businesses
•  Explaining tariffs, quotas, embargoes, standards, and subsidies as trade barriers
•  Explaining why countries sometimes impose trade barriers and sometimes advocate free trade
Unpacked Content
Strand: Economics, Civics and Government
Course Title: Economics
Evidence Of Student Attainment:
Students:
  • Calculate opportunity costs to determine comparative advantage.
  • Calculate gains from trade based on comparative advantage.
  • Determine the impact of certain factors on exchange rates.
  • Determine of the impact of changes in exchange rates on imports and exports.
Teacher Vocabulary:
  • globalization
  • absolute advantage
  • comparative advantage
  • gains from trade
  • exchange rate
  • currency appreciation
  • currency depreciation
  • purchasing power parity (Big Mac Index)
  • import
  • export
  • trade deficit
  • trade surplus
  • tariff
  • quota
  • embargo
  • export subsidies
  • NAFTA
  • CAFTA
  • EU
  • WTO
  • IMF
  • World Bank
Knowledge:
Students know:
  • The difference between absolute and comparative advantage and the importance of each.
  • The types, purpose and impact of trade barriers.
  • The factors that affect exchange rates.
  • How changes in exchange rates affect trade.
  • The international organizations and agreements that impact globalization.
Skills:
Students are able to:
  • Determine comparative advantage by calculating opportunity costs.
  • Calculate gains from trade based on comparative advantage.
  • Determine how certain factors affect exchange rates.
  • Determine how changes in exchange rates affect global trade.
Understanding:
Students understand that:
  • Comparative advantage plays a role in trade and it leads to gains from trade.
  • Countries impose trade barriers and the economic impact of these barriers.
  • Many factors affect exchange rates.
  • Changes in exchange rates affect trade between countries.
  • International trade leads to economic growth and higher standards of living worldwide.
Alabama Alternate Achievement Standards
AAS Standard:
SS.E.AAS.12.12- Identify the benefits of trading with individuals, businesses, and other countries.
SS.E.AAS.12.12a - Define absolute advantage and comparative advantage.
SS.E.AAS.12.12b - Define exchange rates.
SS.E.AAS.12.12c - Recognize how changes in exchange rates affect trade including trade wars with China today.