Principles of Economics

• Explain how the principles of economics affect decision-making, interaction, and the workings of the economy as a whole.
• Compare and contrast market systems and the role of an economist within these systems.
• Describe how the necessity of a good and the availability of substitutions impact price elasticity.
• Determine how changes in price and quantity influence market equilibrium.

Markets and Types of Goods

• Explain how labor market equilibrium is affected by the supply and demand of labor.
• Summarize the factors that affect labor supply and demand.
• Compare and contrast public goods, private goods, common resources, and natural monopolies.
• Describe the characteristics of competitive markets, monopolies, and oligopolies.

Measuring Economic Health and Fiscal Policy

• Describe the use of Gross Domestic Product (GDP) to measure the business cycle.
• Describe the roles of the government bodies that determine national fiscal policies.
• Explain the effects of fiscal policies on the economy’s production and employment.

The Federal Reserve

• Describe the purpose and function of money.
• Explain how the central bank manages a nation’s monetary system.
• Explain the effects of monetary policies on the economy’s production and employment.

International Trade

• Define absolute and comparative advantage.
• Describe the influences affecting foreign exchange rates.
• Debate issues surrounding international trade.
• Evaluate the effects of government policy on economic behavior.