TERM ONE: MICROECONOMICS- (the branch of economics that focuses on the behavior of individual participants in various markets).

Transcription

1 Economics 12 ECO12 Course Outline The grade 12 Economics course is meant to be a comprehensive and practical study of the Canadian, and global economy covering the main issues in both microeconomics and macroeconomics. Term one will involve an examination of microeconomics. Term two will focus on macroeconomics. Although Grade 11economics is not a prerequisite, it certainly will provide students with a sound background. Any student who is considering commerce or business as a possible option in post-secondary studies should strongly consider taking Economics 12. It examines the role of participants in the economy from the individual consumer to the entrepreneur, to corporations and the influence exerted by government and NGO s(non governmental organizations). The course also examines theoretical economic models such as the market system (capitalism) and planned system (communism or command) and their real world application. Other topics to be explored are; price theory, economic indices, market forces, international trade, business organization, finance, investment, unions, employment and unemployment, taxation, and social programs. On a daily basis (through the use of multi-media, internet, and newspapers), we examine the real world application of economic concepts to local, provincial, national and international decisionmaking. TERM ONE: MICROECONOMICS- (the branch of economics that focuses on the behavior of individual participants in various markets). 1. WHAT IS ECONOMICS? The basic economic problem of scarcity, opportunity cost and production possibilities Productive inputs and their importance the task of an economic system emphasizing efficiency and effectiveness the three basic economic questions 2. CANADA S ECONOMIC SYSTEM: market system with its advantages and disadvantages the role of profits market power command system with it advantages and disadvantages mixed economy or mixed free enterprise 3. BUSINESS ORGANIZATION IN CANADA The strengths and weaknesses, as well as the key characteristics of various business types such as proprietorships, partnerships, corporations, crown corporations and conglomerates Privatization

2 The role of small business and big business in Canada 4 AND 5. THE DEMAND SIDE AND THE SUPPLY SIDE OF MARKETS Demand, demand elasticity, demand inelasticity Supply, supply elasticity, supply inelasticity Price makers and price takers Market power The graphing of supply and demand 6. THE DYNAMICS OF COMPETITIVE MARKETS Price supports Price ceilings 7. MARKET STRUCTURES Market structure Monopolistic competition Perfect competition Product differentiation Oligopoly Monopoly Price-fixing Price stickiness Price leadership Cartel TERM TWO: MACROECONOMICS- (the branch of economics that a wide-ranging view of the economy, studying the behavior of economic sectors. 1. INTRODUCTION TO MACROECONOMICS Measuring the performance of the Economy Concepts to studied include: Demand side on a macroeconomic scale Supply side on a macroeconomic scale The economic cycle (from growth-prosperity- boom- to recession) Inflation GDP (Gross Domestic Product) (Gross National Product) CPI (Consumer Price Index) Money GDP vs. Real GDP Unemployment Rate

3 Participation Rate Hidden Unemployment Full Employment Seasonal Unemployment 2. SOURCES OF ECONOMIC PROSPERITY: THE SUPPLY SIDE Supply side Productivity Consumption Investment Saving Economies of scale Marginal tax rates Tariffs Aggregate supply curve 3. SOURCES OF ECONOMIC PROSPERITY: THE DEMAND SIDE Demand side Aggregate demand Personal disposable income Consumer confidence Interest rates Personal savings Personal savings rate Retained earnings Leakages Injections Real economic growth Capacity output

4 Economics 12 ECO12 General Curriculum Outcomes

5 Economics 12 ECO12 Course Units and Outcomes TERM ONE: MICROECONOMICS- (the branch of economics that focuses on the behavior of individual participants in various markets). 1. WHAT IS ECONOMICS? Scarcity and opportunity cost will become consistent reference points as we investigate the nature of all economic systems. In a world of limited resources students need to employ a decision-making model to make choices. They will recognize that there are trade-offs when making choices. Various economic systems approach economic decision-making in different ways when answering the three economic questions - What to produce? How much to produce? And for whom to produce? The unit includes an overview of the Canadian economic system and Canada s economic goals. 2. CANADA S ECONOMIC SYSTEM: The learning objectives in this unit will demonstrate how a market system provides answers to each of the three basic questions of economics. It will explain how profits and the profit motive contribute to the effective and efficient use of economic resources. Explain how competition contributes to the efficient and effective use of economic resources. And, explain why Canada s economic system is appropriately described as a mixed free enterprise system. 3. BUSINESS ORGANIZATION IN CANADA This unit examines and the key characteristics which ultimately influence the type of business diversity that exists in Canada. This unit also investigates the most serious problems facing both big business and small business in Canada. The importance of big business in Canada, as it relates to output, employment and exports is also discussed. This chapter also summarizes and evaluates the arguments in favor of retaining government enterprises in the Canadian economy and the arguments in favor of privatizing them. 4 AND 5. THE DEMAND SIDE AND THE SUPPLY SIDE OF MARKETS This area of study focuses on a major component of microeconomics; that is the relationship of supply and demand to pricing and availability of resources. We will draw a demand/supply curve for a product from a demand/supply schedule showing the quantity demanded/supplied at various prices. It will be explained how a given event would increase or decrease the demand/supply for a particular product and show how the event would affect the demand/supply curve. The concepts of elasticity and inelasticity, as they apply to both supply and demand will be explained. We will also determine whether a given event would make the demand for or, the supply of, an item

6 more elastic or more inelastic. 4. THE DYNAMICS OF COMPETITIVE MARKETS Many of the concepts studied in the previous units will be more specifically examined in this unit. Graphing and price analysis will be applied and discussed as they relate to various market conditions and changes. The role of the government in price-making will be studied as it relates to the effects of a government price support that the price above its equilibrium level and explain, with the aid of a graph, the effects on a market of a government-imposed price control that holds the price below its equilibrium level. 5. MARKET STRUCTURES This final unit in our study of microeconomics deals with a variety of market structures, their characteristics, and their influences on the economy and pricing. Once again, graphing and understanding the relationship of pricing to various market conditions will be examined. All of the above mentioned market structures will be discussed and graphed with the intention of clearly demonstrating not only the theoretical, but also the practical as it relates to society and its choices. TERM TWO: MACROECONOMICS- (the branch of economics that a wide-ranging view of the economy, studying the behavior of economic sectors. 1. INTRODUCTION TO MACROECONOMICS This is a unit that examines a variety of statistical categories, why they are important, how they are calculated and the impact that they have on not only the Canadian economy, but also the global economy. Students will learn the 5 key factors of the supply side and the 4 components of the demand side of the economy. Students will examine how the characteristics of the supply side and the demand side of a market economy must work interdependently to function smoothly. Students will examine what is measured by the GDP, list its 4 major components and show how the GDP is calculated. Students will state what is measured by the CPI, how the CPI is constructed to achieve its purpose, be able to calculate the rate of inflation from the CPI for 2 consecutive years. Finally, students will state the purpose of the labor force, describe the main statistics that it generates and calculate the unemployment rate from Labor Force Survey data. 2. SOURCES OF ECONOMIC PROSPERITY: THE SUPPLY SIDE This macro unit investigates the following learning objectives: students should understand 2 reasons why high productivity is considered to be a fundamental requirement for economic prosperity. Students will examine 6 main factors that influence productivity, and explain how each factor affects productivity. Students will come to understand why productivity is so important to a higher standard of living and

7 how Canada ranks among the leading economic nations of the world. We will also examine the role of government in helping to strengthening our productivity levels. 3. SOURCES OF ECONOMIC PROSPERITY: THE DEMAND SIDE In this unit, students study the 4 components of AD, explain the 3 factors that have an important influence on the amount of consumption spending and saving done by households, explain the 2 main factors that influence the amount of investment spending done by businesses, explain why savings can be seen as both a threat and as a need, to economic prosperity, describe the operation of the saving-investment process in a modern economy and explain its importance to the demand side of the economy and the supply side of the economy. All of the above mentioned concepts will be investigated rationally so that students not only understand the theory, but can appreciate the practical application of these concepts as they relate to not only the global picture, but more significantly to their own individual place in this global village.