Economics Unit #1 Economic Introduction

The Basics of Economic Decision Making and Economic Systems Ippolito-Spring 2016

Unit Overview:

This unit will focus on the following questions: What is the study of Economics? What is the basis for economic decision making? How is the U.S. economy organized? How do you measure economic performance? What are the goals for an economy?

Our first unit will answer these questions and put you firmly on the road towards economic literacy. The world we live in today is changing rapidly and, regardless of what you choose to do with your life, YOU need to understand basic free market economic principles to succeed in this new world. This course will truly help prepare you for the real world!

Terms for Unit: Textbook pages covered this unit: Pages 3-38

Economics, scarcity, social science, trade-offs, opportunity cost, opportunity benefit, utility, assumptions, economic systems, market economy, command economy, traditional economy incentives, private property, 3 basic economic questions, circular flow of economy, factors of production, Production Possibilities Frontier (PPF), constant opportunity cost PPF, economic indicators, Gross Domestic Product (GDP), invisible hand, Adam Smith, long run, short run, business cycle, unemployment, interest rates fixed versus adjustable, economic forecast, macroeconomics, microeconomics, Federal Reserve, recession

Investment Terms: Stock Market, market capitalization, earnings, bull market, bear market, S&P500, Dow Jones, Fixed Interest rates, Adjustable interest rates, 3 Investment classes: bonds, stocks & money markets

Course Calendar:


Wednesday January 6th

What is Economics

Textbook Reading for week: pages 3 – 11

Thursday January 7th

Economic Decision Making &

Economic Systems Introduction

Friday January 8th

The Free Market System—Adam Smith Reading

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Monday January 11th

Comparing Economic Systems

Textbook Reading for week: pages 13 – 38

Tuesday January 12th

Wrap-Up Economic Systems

Bhutan Video

Wednesday January 13th

Economic Logic

Incentive Reading

Friday January 15th

Senior Talk

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Monday January 18th

MLK Day—No School

Tuesday January 19th

Circular Flow & GDP

Wednesday January 20th

Business Cycle

Alphabet Recovery Video

Friday January 22nd

Full Potential of an Economy: PPF Graph

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Monday January 25th

Fixed vs. Adjustable Interest Rates

Tuesday January 26th

Buying a House

Wednesday January 27th

Housing Bubble USA

Friday January 29th

Introduction to Investing


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Monday February 1st

Introduction to the Stock Market

Tuesday February 2nd

Graphing a Stock

Wednesday February 3rd

Minimum day schedule

Thursday February 4th

UNIT TEST: Multiple Choice & Free Response

Due: Test Study Guide #1