California State Standards:
12.1 Students understand common economic terms and concepts and economic reasoning
1. Examine the causal relationship between scarcity and the need for choices.
2. Explain opportunity cost and marginal benefit and marginal cost.
3. Identify the difference between monetary and non-monetary incentives and how changes in incentives cause changes in behavior.
4. Evaluate the role of private property as an incentive in conserving and improving scarce resources, including renewable and nonrenewable natural resources.
5. Analyze the role of a market economy in establishing and preserving political and personal liberty (e.g., through the works of Adam Smith).

Unit Objectives:
1. Define Economics and its fundamental principles.
2. Differentiate between traditional, command, and market economies.

Chapter 1: What is Economics?
Section 1: Scarcity and the Science of Economics (pages 5-10)
Objective:
1. Explain the fundamental economic problem.
2. Examine the three basic economic questions every society must decide.

Section 2: Basic Economic Concepts (pages 12-17)
Objective:
1. Explain the relationship among scarcity, value, utility, and wealth.
2. Understand the circular flow of economic activity.

Section 3: Economic Choices and Decision Making (pages 19-25)
Objective:
1. Analyze trade-offs and opportunity costs.
2. Explain decision-making strategies.

Chapter 2; Economic Systems and Decision Making
Section 1. Economic Systems (pages 33-39)
Objective:
1. Describe the characteristics of the traditional, command, and market economies.
2. Explain the advantages and disadvantages of the traditional, command, and market economies.

Section 2: Evaluating Economic Performance (pages 41-44)
Objective:
1. Describe the basic economic and social goals used to evaluate economic performance.
2. Evaluate the tradeoffs among economic and social goals.

Section 3: Capitalism and Economic Freedom (pages 46-51)
Objective:
1. Explore the characteristics of a free enterprise system.
2. Describe the role of the entrepreneur, the consumer, and government in a free enterprise economy.

Approximant time: 3 Weeks

California State Standards
12.2 Students analyze the elements of America's market economy in a global setting
1. Understand the relationship of the concept of incentives to the law of supply and the relationship of the concept of incentives and substitutes to the law of demand.
2. Discuss the effects of changes in supply and/or demand on the relative scarcity, price, and quantity of particular products.
3. Explain the roles of property rights, competition, and profit in a market economy.
4. Explain how prices reflect the relative scarcity of goods and services and perform the allocative function in a market economy.
5. Understand the process by which competition among buyers and sellers determines a market price.
6. Describe the effect of price controls on buyers and sellers.
7. Analyze how domestic and international competition in a market economy affects goods and services produced and the quality, quantity, and price of those products.
8. Explain the role of profit as the incentive to entrepreneurs in a market economy.
9. Describe the functions of the financial markets.
10. Discuss the economic principles that guide the location of agricultural production and industry and the spatial distribution of transportation and retail facilities.

Unit Objective:
1. Explain how supply and demand interact to determine price.
2. Describe the major types of economic markets in the United States.
3. Discuss how competition and monopolies affect prices.

Chapter 4: Demand
Section 1. What is Demand? (pages 89-93)
Objective:
1. Describe and illustrate the concept of demand.
2. Explain how demand and utility are related.

Section 2: Factors Affecting Demand (pages 95- 99)
Objective:
1. Explain what causes a change in quantity demanded.
2. Describe the factors that could cause a change in demand.

Chapter 5 Supply
Section 1: What is Supply? (pages 113-120)
Objective:
1. Understand the difference between the supply schedule and the supply curve.
2. Explain how market supply curves are derived.
3. Specify the reasons for a change in supply.

Chapter 7 Market Structures
Section 1: Competition and Market Structures (pages 163-171)
Objective:
1. Explain the characteristics of perfect competition.
2. Understand the nature of monopolistic competition.
3. Describe the behavior and characteristics of the oligopolist.
4. Identify several types of monopolies.

Section 2. Market Failures (pages 173-176)
Objective:
1. Discuss the problems caused by inadequate competition.
2. Understand the importance of having adequate information.
3. Describe the nature of resource immobility.
4. Explain the nature of positive and negative externalities.

Section 3. The Role of Government (pages 178-183)
Objective:
1. Discuss major antitrust legislation in the United States.
2. Understand the need for limited government regulation.
3. Explain the value of public disclosure.
4. Discuss the modifications to our free enterprise economy.

Approximant time: 3 Weeks

California State Standards
12.4 Students analyze the elements of the U.S. labor market in a global setting.
1. Understand the operations of the labor market, including the circumstances surrounding the establishment of principal American labor unions, procedures that unions use to gain benefits for their members, the effects of unionization, the minimum wage, and unemployment insurance.
2. Describe the current economy and labor market, including the types of goods and services produced, the types of skills workers need, the effects of rapid technological change, and the impact of international competition.
3. Discuss wage differences among jobs and professions, using the laws of demand and supply and the concept of productivity.
4. Explain the effects of international mobility of capital and labor on the U.S. economy.

12.5 Students analyze the aggregate economic behavior of the U.S. economy.
1. Distinguish between nominal and real data.
2. Define, calculate, and explain the significance of an unemployment rate, the number of new jobs created monthly, an inflation or deflation rate, and a rate of economic growth.
3. Distinguish between short-term and long-term interest rates and explain their relative significance.

Unit 3 :Macroeconomics
Unit Objective:
1. Trace the development and influence of labor unions.
2. Discuss the different methods to measure economic performance.
3. Understand how poverty, inflation, and unemployment affect the economy of the nation.

Chapter 8 Employment, Labor, and Wages
Section 1. The Labor Movement (pages 193-198)
Objectives:
1. Explain why unions are still important today.
2. Discuss the development of the labor movement from the late 1700s to the 1930s.
3. Relate labor’s successes during the Great Depression.
4. Describe the major labor developments since World War II.

Section 2. Resolving Union and Management Differences (pages 200-203)
Objective:
1. Explain the differences among kinds of union arrangements.
2. Describe several ways to resolve labor and management differences when collective bargaining fails.

Section 3. Labor and Wages (pages 205-209)
Objective:
1. Identify four main categories of labor.
2. Explain the importance of non-competing labor grades.
3. Describe three different approaches to wage determination.

Section 4. Employment Trends and Issues (pages 211-218)
Objective:
1. Explain why union membership has declined.
2. Describe reasons for the discrepancy in pay between men and women

Chapter 13 Economic Performance
Section 1. Measuring the Nation’s Output (pages 341-348)
Objective:
1. Explain how Gross Domestic Product (GDP) is measured.
2. Describe the limitations of GDP
3. Understand the importance of GDP.

Chapter 14 Economic Instability
Section 2. Unemployment (pages 382-387)
Objective:
1. Explain how the Bureau of Labor Statistics determines if a person is employed.
2. Describe five kinds of unemployment.

Section 3. Inflation (pages 389-392)
Objective:
1. Explain how inflation is measured.
2. Discuss five causes of inflation.
3. Analyze the destabilizing consequences of inflation.

Section 4 4. Poverty and the Distribution of Income (pages 394-400)
Objective:
1. Explain how economists measure the distribution of income.
2. Discuss the reasons for the inequality of income.
3. Discuss antipoverty programs.

Approximant time: 3 Weeks