Trinity Area School District Template for Curriculum Mapping,

Transcription

1 Trinity Area School District Template for Curriculum Mapping, Course: AP Micro and Macro Economics Grade: Designer(s): Brian Schwab Overview of Course (Briefly describe what students should understand and be able to do as a result of engaging in this course): Economics is the study of how society manages its scarce resources. How the combined actions of millions of households and firms make decisions and how those households and firms interact with each other. This includes an analysis of forces and trends that affect the as a whole in a closed as well as open system. Overarching Big Ideas, Enduring Understandings, and Essential Questions (These spiral throughout the entire curriculum.) Big Idea (A Big Idea is typically a noun and always transferable within and among content areas.) (The first overarching Big Idea goes here.) Decisions Standard(s) Addressed (What Common Core Standard(s) and/or PA Standard(s) addresses this Big Idea?) (The Common Core Standard(s) and/or PA Standard(s) that addresses the first overarching Big Idea goes here.) A: Predict the long-term consequences of decisions made because B: Evaluate the behind a choice. Evaluate of C: Analyze the D: Predict how changes in incentives may affect the choices made by communities and nations F: Assess the impact of entrepreneurs G: analyze the risks and returns of various investments Enduring Understanding(s) (SAS refers to Enduring Understandings as Big Ideas. EUs are the understandings we want students to carry with them after they graduate. EUs will link Big Ideas together. Consider having only one or two EUs per Big Idea.) (The Enduring Understanding(s) for the first overarching Big Idea goes here.) There are four basic economic concepts that explain how people make decisions People face trade-offs The cost of something is what you give up to get it Rational people think at the margin People respond to incentives Essential Question(s) (Essential Questions are broad and open ended. Sometimes, EQs can be debated. A student s answer to an EQ will help teachers determine if he/she truly understands. Consider having only one or two EQs per Enduring Understanding.) (The Essential Question(s) for the Enduring Understanding(s) for the first overarching Big Idea goes here.) Describe the decision making that goes into the classic trade-off of guns and butter What decisions do households and societies face when deciding how to allocate resources? What decisions go into buying, selling, saving and investing wealth? How do decisions about efficiency affect equality and vice versa? Interactions A: Evaluate the flow of goods and services in an international B: Analyze the effect of changes in the level of competition in different markets C: Predict and evaluate how media affects markets D: Predict how changes in supply and demand affect equilibrium price and quantity sold A: analyze the factors influencing wages B: Evaluate how incentives, technology, D: Analyze the role of profits and losses in the allocation of resources in a market E: Compare distribution of wealth across nations H: Evaluate There are three economic concepts that explain how people interact. Trade can make everyone better off Markets are usually a good way to organize economic activity Governments can sometimes improve market outcomes How do people interact with one another in markets where prices are determined and quantities exchanged How does specialization and trade lead to interactions that benefit all societies? How do decisions, based on self-interest, lead to interactions in which quantities and prices are set at their equilibrium In what ways do government interactions guarantee the proper functioning of a free market?

2 Systems E: Evaluate the health of an (local, regional, national, global) using economic indicators F: Evaluate the impact of private economic institutions on the individual, the national and the international G: Evaluate A: Evaluate government decisions to B: Assess the regulating and stabilizing C: Evaluate the social, political, and economic costs/benefits of potential changes to taxation policies D: Evaluate the role that governments play in A: Evaluate the comparative advantage of nations in the of B: Assess the growth and impact of international trade around the world C: Evaluate the impact of multinational corporations and other non-government organizations D: Analyze how changes in transportation, communication networks, and technology affect economic interdependence around the world in the 21 st century C: Analyze organizing a business as a There are three basic economic concepts that explain how the economic system as a whole works A country s standard of living depends on its ability to produce goods and services Prices rise when the government prints too much money Society faces a short-run trade-off between inflation and unemployment How does the productivity of a society improve standards of living? How do individual decisions on income, unemployment and inflation affect the as a whole? How does understanding the trade-off between inflation and unemployment lead to an understanding of fluctuations in the business cycle? Big Ideas, Enduring Understandings, and Essential Questions Per Unit of Study (These do NOT spiral throughout the entire curriculum, but are specific to each unit.) Month of Instructi on (In what month(s) will you teach this unit?) days unit: introduction to economics Title of Unit Introduction to economics 10 principles of economics Big Idea(s) (A Big Idea is typically a noun and always transferable within and among content areas.) Scarcity Decisions connections Standard(s) Addressed (What Common Core Standard(s) and/or PA Standard(s) addresses this Big Idea?) A: Predict the longterm consequences of of Enduring Understanding(s) (SAS refers to Enduring Understandings as Big Ideas. EUs are the understandings we want students to carry with them after they graduate. EUs will link Big Ideas together. Consider having only one or two EUs per Big Idea.) Economics is about allocation of scarce resources Society faces a certain trade-offs such as those between guns and butter Trade among people and nations is good for everyone Essential Question(s) (Essential Questions are broad and open ended. Sometimes, EQs can be debated. A student s answer to an EQ will help teachers determine if he/she truly understands. Consider having only one or two EQs per Enduring Understanding.) Why does scarcity necessitate rationing and cause competition? What are examples of the various trade-offs that societies face? What are positives and negatives of trade among people and nations? Common Assessment(s)* (What assessments will all teachers of this unit use to determine if students have answered the Essential Questions?) Timed multiple choice (5 answer) quizzes Timed open ended writing prompts Practice tests based on previous AP multiple choice and open-ended questions Instruction and practice on grading AP economics open ended Common Resource(s)* Used (What resources will all teachers of this unit use to help students understand the Big Ideas?) Newspapers/ Magazines o Wallstreet Journal o Financial Times o New York Times o USA Today o Economist Textbooks o Mankiw Principles of economics (primary text)

3 Thinking like an economics Interdependen ce and gains from trade Discover Perspective Cooperation Interdependence Comparing specialization D: Predict how changes in incentives may affect the choices made by A: Predict the longterm consequences of of D: Predict how changes in incentives may affect the choices made by A: Evaluate the flow of goods and services in an international B: Analyze the effect of changes in the level of competition in different markets A: Evaluate the flow of goods and services in an international D: Analyze how Economists apply the methods of science there is a difference between positive and normative statements economists play a role in policy making everyone benefits from trade all people have a comparative advantage even if they do not have an absolute advantage specialization leads to economic growth What similarities do economists have to scientists? What is the difference between positive and normative economics? How do economists impact policy? Are economists ideas always used appropriately? What are positives and negatives of trade? How do people who do not have an absolute advantage still benefit from trade? What are examples of question Repeated review and practice of labeling, creating, and showing shifts in economics based graphs Mankiw study guide o Bake & Parkin Foundations of Economics AP edition o McConnel Economics AP edition o Krugman Economics for AP Websites o AP Central o Federal Reserve o Bureau of Labor and Statistics o CNBC o Bloomberg o Fox business Network o Forbes o Market Watch o Yahoo finance

4 14-16 days- Unit: how markets work How markets work Supply and demand Elasticity Connections Correlation Systems Evolution changes in transportation, communication networks, and technology affect economic interdependence around the world in the 21 st century D: Evaluate the role that governments play in E: Compare distribution of wealth across nations A: Predict the longterm consequences of of communities and nations b: Analyze the effect of changes in the level of competition in different markets D: Predict how changes in supply and demand affect equilibrium price and quantity sold A: Predict the longterm consequences of of B: Analyze the effect of changes in the level of competition in different markets D: Predict how changes in supply and demand affect equilibrium price and quantity sold Supply and demand can be plotted mathematically in order to find equilibrium price and quantity Supply and demand sets the price and quantity of goods and services The supply and demand curve determines how scarce resources are allocated in a market Price and income elasticity and supply elasticity varies in the market Price elasticity of supply varies in the short run and the long run specialization and what would happen if it did not exist? How can a products supply and demand be computed mathematically? How are the prices and quantities of goods and services determined? In what way does the equilibrium price and quantity determine how resources are allocated in a market? What factors affect the elasticity of demand and supply? How would the elasticity supply curve vary over time? Supply, Intervention A: Predict the long- The market can be manipulated How does government influence

5 12-14 daysunit: markets and welfare demand and government policies Markets and welfare Consumers, producers and efficiency of markets Costs of taxation Conflict Scarcity Equilibrium Correlation Balance Patterns term consequences of of B: Analyze the effect of changes in the level of competition in different markets D: Predict how changes in supply and demand affect equilibrium price and quantity sold A: Predict the longterm consequences of of D: Predict how changes in incentives may affect the choices made by B: Analyze the effect of changes in the level of competition in different markets D: Predict how changes in supply and demand affect equilibrium price and quantity sold through laws and regulations Taxes and government policies have an effect on the supply and demand of goods The burden of taxation is unevenly split between consumers and producers The allocation of resources effects economic well-being or economic welfare All quantities other than equilibrium quantity fail to maximize total surplus in a market Taxes reduce consumer and producer surplus Taxes cause a deadweight loss Tax revenue and deadweight loss vary with the size of a tax free markets through laws and regulations? In what way does a tax or a government policy effect the amount of product produced and its price? Who pays the burden of taxes on a good or service? Do equilibrium price and quantity always maximize economic welfare? Is the equilibrium price and quantity in a market the best possible solution to the resource allocation problem? What impact does a tax have on the consumer and producer surplus? How can deadweight loss be computed mathematically? What impact does the size of a tax have on the loss to the market?

6 14-16 daysunit: economics of the public sector International trade Economics of the public sector Externalities Public goods and common resources Trade Consumption Conflict Conflict Balance Cooperation conflict Intervention order C: Evaluate the social, political, and economic costs/benefits of potential changes to taxation policies D: Evaluate the role that governments play in A: Evaluate the flow of goods and services in an international D: Analyze how changes in transportation, communication networks, and technology affect economic interdependence around the world in the 21 st century D: Evaluate the role that governments play in E: Compare distribution of wealth across nations C: Evaluate the social, political, and economic costs/benefits of potential changes to taxation policies D: Evaluate the role that governments play in C: Evaluate the social, political, and economic costs/benefits of potential Trade lowers prices Trade restrictions cause deadweight loss The gains to winners in international trade exceed the losses to losers in international trade Externalities make market outcomes inefficient Government can sometimes improve market outcomes Private parties working in their own self-interest often solve the externality problem on their own When goods are free, market forces that normally allocate resources are absent Government can remedy market failure of public goods and common resources The Tragedy of the Commons refers to the overuse and possible destruction of common resources In what ways are prices lowered as a result of free trade? What impact do trade restrictions have on an? Do all people benefit from free trade? Can one person s actions have an impact of the well-being of a bystander? Do government policies to limit externalities always work as they are supposed to? How can self-interested parties, without government intervention, solve the problem of externalities? How can property rights improve the allocation of common resources? How can fees and regulation solve the overuse of common resources? What are present day examples of the Tragedy of the Commons and how can they be remedied?

7 18-20 days Unit: Firm behavior and the organization of industry Design of the tax system Firm behavior and the organization of industry Costs of Firms in competitive markets Monopoly Acceptance Challenge Conflict Systems Cycles Patterns Systems Acceptance Manipulation changes to taxation policies D: Evaluate the role that governments play in C: Evaluate the social, political, and economic costs/benefits of potential changes to taxation policies D: Evaluate the role that governments play in F: Evaluate the impact of private economic institutions on the individual, the national and the international systems C: Analyze the F: Evaluate the impact of private economic institutions on the individual, the national and the international systems C: Analyze the F: Evaluate the impact of private economic institutions on Taxes are an inevitable part of a market There are administrative burdens to any tax There is a trade-off between efficiency and equity in the design of a tax system There is a link between a firm s process and its total cost There is a link between a firms short-run and long-run costs A firm s costs can be analyzed mathematically through the cost curve A competitive market is characterized by three conditions A firm s behavior determines a market s short-run and long-run supply curves The long-run supply curve in a competitive market is more elastic than the short-run supply curve Monopolies exist in some markets Monopolies are able to set the price and quantity of goods Why are taxes necessary in a free market? What burden do taxes put on businesses and individuals? Should our tax system strive for equality or efficiency? What is the goal of a firm? How does a firm s fixed and variable costs impact its hiring and firing? What mathematical inputs are used to create a firm s cost curve? What are the differing patterns of a competitive market versus a non- competitive market? What are the differences between the short run and long run supply curves in a competitive market? Why is the long run supply curve more elastic than the short run supply curve? Why are monopolies permitted to exist in some markets and not in others?

8 13-15 days- Unit: The economics of labor markets Monopolistic competition Oligopoly The economics of labor market Markets for the factors of Influence Inefficiency Perspective Connections Patterns Acceptance Similarities Inequality the individual, the national and the international systems C: Analyze the F: Evaluate the impact of private economic institutions on the individual, the national and the international systems C: Analyze the F: Evaluate the impact of private economic institutions on the individual, the national and the international systems C: Analyze the A: analyze the factors influencing wages C: Analyze the without regard to equilibrium There are public policy options aimed at solving the problem of monopolies Monopolistically competitive firms produce at less than efficient scale in the long run Long run adjustments in monopolistically competitive markets can be shown mathematically There are arguments for and against the use of brand names and advertising Oligopolies have similarities to both free markets and monopolies Prisoners dilemma can be used to describe the conditions in which oligopolies operate under Oligopolies can be an accepted business practice in a free market The labor-supply curve is usually upward sloping Labor markets are similar to the markets for other factors of Some workers earn more than other workers How can we show mathematically a dead weight loss due to the existence of a monopoly? What are examples of public policies aimed at reducing or eliminating the influence of monopolies in the market place? How does an inefficient company survive in a competitive market? How can graphs be used to show long run adjustments in monopolistically competitive markets? Provide arguments in support of and in opposition to the use of advertising and brand names. What are differences and similarities of oligopolies to monopolies and the free market? What is prisoners dilemma and how can it be used to show the conflict inherent in systems of oligopolies? What are the reasons that an oligopoly would be allowed to function in a free market? How can the labor supply curve be represented mathematically? What are the other factors of and how are their curves similar to the labor curve? What factors determine the wage of workers?

9 10-12 days Unit: The data of macroecono mics days- Unit: The real in the long run Earnings and discrimination Income inequality and poverty The data of macroeconomics Measuring a nations income Measuring cost of living The real in the long run Production and growth Correlations Wealth Discrimination Change Compare Perspectives Compare Conflict Comparison Correlation Diversity Order Environments D: Analyze the role of profits and losses in the allocation of resources in a market A: analyze the factors influencing wages C: Analyze the D: Analyze the role of profits and losses in the allocation of resources in a market A: analyze the factors influencing wages C: Analyze the D: Analyze the role of profits and losses in the allocation of resources in a market E: Evaluate the health of an (local, regional, national, global) using economic indicators E: Compare distribution of wealth across nations E: Evaluate the health of an (local, regional, national, global) using economic indicators E: Compare distribution of wealth across nations of Wages often compensate for differences in job characteristics In some occupations a small number of superstars earn tremendous incomes It is difficult to measure the impact of discrimination on wages The gap between skilled and unskilled workers pay is growing in the United States Political philosophers have differing views on how government should redistribute income The government uses various policies with the purpose of helping poor families escape poverty A nations total income equals its total expenditure GDP is made up of four components GDP can be measured in real or nominal terms CPI is an imperfect measure of the cost of living CPI and GDP deflator can be compared as a measure of overall price level There is a distinction between real and nominal interest rates Economic growth varies from country to country A country s productivity depends directly on the productivity of its citizens There are seven areas of policy Why do people with same backgrounds in different jobs earn different amount of money? What characteristics are necessary for a market where superstars can arise? Does discrimination in the workplace exist and if so how can it be proven? What are the reasons that explain the growing gap in income of skilled and unskilled workers? Compare and contrast utilitarianism, liberalism and libertarianism. What are the positives and negatives of the various policies the government utilizes to help the poor escape poverty? Prove mathematically that a nations total income equals its total expenditures What are the four major components of GDP and how is GDP defined and calculated Which is a better measure of the economies functioning, real GDP or nominal GDP? What are three reasons that CPI may be biased? What are two differences between CPI and GDP deflator? What relationship among the real interest rate, the nominal interest rate and the inflation rate? What factors cause some countries to grow by large percentages but not others? What are the inputs or factors of that explain a country s productivity?

10 Saving, investment and the financial system Basic tools of finance Interactions Correlation Change Conflict Perspectives D: Predict how changes in incentives may affect the choices made by A: Evaluate the flow of goods and services in an international B: Analyze the effect of changes in the level of competition in different markets A: Evaluate the comparative advantage of nations in the of goods a nd services B: Assess the growth and impact of international trade around the world E: Compare distribution of wealth across nations F: Assess the impact of entrepreneurs D: Analyze the role of profits and losses in the allocation of resources in a market E: Compare distribution of wealth across nations F: Assess the impact of entrepreneurs G: analyze the risks and returns of various investments action that may influence a country s productivity and growth Financial institutions match borrowers and lenders There is a relationship between national saving, government deficits and investment Taxes on interest or investment can cause a change in the supply and demand of the loanable funds market The time value of money can be measured mathematically People are risk averse According to the efficiency markets hypothesis, asset prices reflect all publicly available information about the value of an asset What policies are most important for a countries productivity and growth? What are the various ways that financial institutions match borrowers and lenders? How can national savings be represented mathematically? In what ways do taxes on interest or investment cause a change in the supply or demand in the loanable funds market? How can two people who make slightly different rates end up with significantly different incomes in the long run? What are ways that people reduce risk? Do you agree that markets are rational and always supplied with all the available

11 10-12 days Unit: Money and prices in the long run days- Unit: the Macroecono mics of open economies Unemployment Money and prices in the long run The monetary system Money growth and inflation The macroeconomics of open economies Open- macroeconomics: Measurement Intervention Evolution Wealth intervention Connections conflict Correlation Interactions Economists measure the performance of the labor market using unemployment statistics Certain types of unemployment can be lowered through some government policies Nongovernment policies often influence the rate of unemployment Money is the set of assets commonly used to buy goods and services Banks have an impact on the money supply The Federal Reserve has a number of tools that are used to manipulate the supply of money There is a relationship between the rate of growth of money and the inflation rate There is a cost to the from high inflation Net exports must always equal net capital flow Saving, domestic investment and net capital outflows are related information necessary to make informed decisions? What are some negatives positives for measuring economic performance of the three unemployment statistics? Does government interference in the labor market increase or decrease unemployment figures and how? What other types of policies or organizations have an effect on the unemployment statistics? What are the various types of money and how has its use evolved over time In what ways are banks about to increase or decrease the supply of money in the system? What are the various tools the Federal Reserve uses and what impact does each have on the supply of money? In what ways does an increased supply of money affect the rate of inflation? A decreased money supply? What are some ways in which inflation lowers peoples standard of living Using mathematical equations explain why net exports must always equal net capital flow In what ways does a countries saving and domestic investment

12 12-14 days Unit: Short run economic fluctuations basic concepts Macroeconomic theory of the open Short run economic fluctuations Aggregate demand and aggregate supply Influence of monetary and fiscal policy on aggregate demand Interactions interdependence System Balance Perspectives A: Predict the longterm consequences of of D: Predict how changes in incentives may affect the choices made by A: Evaluate the flow of goods and services in an international Purchasing power parity is a theory of how exchange rates are determined A budget deficit tends to cause a trade deficit The market for loanable funds is linked to the market for foreigncurrency exchange by net capital outflow (NCO) Various government policies and other events affect the equilibrium values of variables in our mathematical models Economists use the model of aggregate-demand and aggregatesupply to analyze short-run fluctuations in the Short run fluctuations in aggregate-supply and aggregatedemand can be graphed mathematically Policy makers sometimes try to offset shifts in aggregate demand through monetary and fiscal policy Government policy can be used to stabilize the impact its net capital outflows? How does purchasing power parity work and does it always work in reality? How can mathematics be used to show that a budget deficit causes trade deficits In what ways does the market for loanable funds interact with foreign currency exchanges? What impact do government budget deficits, trade policy, political instability and capital flight have on the equilibrium of an open market What factors cause the aggregate-supply and aggregatedemand curve to shift How can a graph show the equilibrium of short term aggregate-supply and aggregatedemand In what instances would the government attempt to stabilize shifts in aggregate demand? What are the cases for and against active stabilization policy?

13 The short run trade-off between inflation and unemployment Tradeoffs Patterns Society faces a short-run trade-off between inflation and unemployment The Phillips curve tends to be correct in the short-run but incorrect in the long-run What affect do demand curve shifts have on the short-run trade-off between inflation and unemployment? How do rational expectations influence the short-term and long-term expectations of inflation? * Some teachers may need to think about the assessments and resources used in order to determine the Big Ideas, Enduring Understandings, and Essential Questions embedded in their courses. At this point in your curriculum mapping, you might want to ignore the Common Assessments and Common Resources Used columns. However, you may use them if you wish. ** Note: AP curriculum is not based on 180 day school year. Curriculum is adapted to address the timing of the AP Micro and Macro testing date which occurs in May. Days may be adjusted based on when the AP Test takes place. *** Blue denotes the microeconomic and red denotes the macroeconomic portion of this class