Essential Unit 2 (E02)

ECONOMICS

(SECONDARY)

ESSENTIAL UNIT 2 (E02)

(Economic Models: Trade-offs & Trade Models)

(July 2015)

Unit Statement: In this unit the student will learn about economic models and his/her crucial role in economics. Comparative advantage and the production possibilities frontier model are introduced. Basic sources of economic growth are covered along with the circular-flow diagram. The student will also learn about the difference between positive and normative economics. Models and diagrams are an essential component of this course.

Essential Outcomes: (must be assessed for mastery)

1. The Student Will use the PPF model to explain opportunity cost.

2. TSW apply the PPF model to explain economic growth from changes in the factors of production and improved technology.

3. TSW explain the difference between comparative advantage and absolute advantage.

4. TSW calculate gains from trade between two countries/firms/individuals after identifying comparative advantage.

5. TSW apply the circular-flow diagram to explain how goods, services, and money flow between households and firms.

6. TSW identify examples of positive and normative economics.

7. TSW define and apply Key Terms and Concepts.

Key Terms and Concepts:

Model / Absolute advantage / Factor markets
Other things equal assumption / Barter / Income distribution
Production possibility frontier / Circular-flow diagram / Positive economics
Factors of production / Household / Normative economics
Technology / Firm / Forecast
Comparative advantage / Markets for goods and services

Suggested Materials:

“Essentials of Economics” First Principles, Chapters 2;

Suggested Strategies and assessments:

1. Simulation classroom activity.

2. Teacher generated examinations.

3. “Economics In Action” section from textbook.

Technology Tools:

WebPath Express (found in school library)

Economic education link database: http://www.econedlink.org/web-links/approved-economic-web-links.php

Foundation for the Teaching of Economics: http://www.fte.org

Khan Academy Microeconomics: http://www.khanacademy.org/economics-finance-domain/microeconomics

Khan Academy Macroeconomics: http://www.khanacademy.org/economics-finance-domain/macroeconomics

ACDC Econ: https://www.youtube.com/channel/UCCQEbqDL8i40d83Au55lYMQ

MJMFoodie Econ: https://www.youtube.com/user/mjmfoodie

Jason Welker Econ: https://www.youtube.com/user/welkerjason

RUBRIC FOUND ON FOLLOWING PAGE…………………………..

QSI ECONOMICS

ESSENTIAL UNIT 2 (E02) RUBRIC

(Economic Models: Trade off’s & Trade)

Must achieve all ‘B’ Level in all TSW’s for a ‘B’.

Must achieve 2 of 3 in the ‘A’ column for an ‘A’.

The Student Will……….. / ‘A’ Level Mastery / ‘B’ Level Mastery / NOTES
1. use the PPF model to explain opportunity cost. / Can provide creative examples of increasing, decreasing, and constant opportunity costs. / Consistently able to use the PPF model to calculate and explain opportunity costs.
2. apply the PPF model to explain economic growth from changes in the factors of production and improved technology. / Can predict potential growth using specific examples in real life. / Can explain the concept and potential sources of economic growth using the PPF model.
3. explain the difference between comparative advantage and absolute advantage. / Can explain the fallacy associated with confusing absolute and comparative advantage as related to arguments against international trade with a real-world example. / Can explain the difference between absolute and comparative advantage.
4. calculate gains from trade between two countries/firms/individuals after identifying comparative advantage. / Can calculate the gains from trade between two entities.
5. apply the circular-flow diagram to explain how goods, services, and money flow between households and firms. / Can diagram and explain all parts of the circular flow model.
6. identify examples of positive and normative economics. / Can consistently identify positive and normative statements and differentiate between the two.
7. define and apply Key Terms and Concepts. / Can define and apply the key terms.

QSI ECONOMICS SEC E02