Unit 1: Physical Geography by ro61q7ka

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									Economics – Unit 1 – Basic Economic Concepts



Unit Number: 1

Enduring Understanding: There is a cost for everything. The idea of "there is no such thing as free lunch" seems foreign, but
everything has an opportunity cost.

Essential Questions: What economic tools can people utilize in order to come to understand that everything has an
opportunity cost.

Concepts: Scarcity; Wants; Needs; Opportunity Cost; Circular Flow Model; Markets; Sectors; Households; Business Firms;
Exchange; Economic Independence; Sole Proprietorship; Partnership; Corporation; Liability; Stocks; Bonds;

Topic/Take-Away: Scarcity and choice are basic principles of economics and they are used by societies to answer basic
economic questions. In addition, economic factors of production are used as parts to further define scarcity and choice.

Topic/Take-Away: Production possibilities curve demonstrates the concept of opportunity cost and alternative ways to use
resources.

Topic/Take-Away: One may utilize a circular flow model of the economy in order to see the effects resource owners and firms
have on the economy.

Topic/Take-Away: Sole Proprietorships, Partnerships, and corporations are the different types of business structures. If you
create a business, these are the structures.


                                                 Academic Terms to Know


       Scarcity                                                            Partnerships (General/Limited Liability)
       economic model                                                      Corporation
       wants                                                               Liability
       Needs                                                               Stocks
       Opportunity Cost                                                    Dividends
       Trade Offs                                                          Bonds
       Guns and Butter                                                     Interest
       Factors of Production                                               Production Possibilities Curve (Frontier)
       Factor Market                                                       Resources
       Resource Market                                                     Cost
       Circular Flow Model                                                 Benefits
       Markets                                                             Production
       Sectors                                                             Incentives
       Households                                                          Competition
       Business Firms                                                      Private Property
       Exchange                                                            Free Market
       Economic Interdependence                                            Taxes
       Sole Proprietorship                                                 Profit




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Economics – Unit 1 – Basic Economic Concepts




                                                     Guiding Questions

1. Why are scarcity and choice basic economic problems faced by people and societies? (1A)

2. What are the different ways that societies answer basic economic questions? (1B)

3. What are the FOUR major factors of production and how are these factors affected by scarcity and choice? (1C)

4. What is a production possibilities curve? (1D)

5. How does the production possibilities curve show us alternate ways to use resources? (1D)

6. Using the circular- flow model, how do resource owners and firms affect the flow of money? (8A)

7. Describe and explain the circular- flow model? What are the different things it can show us? (8A)

8. What are the different ways the U.S. government can affect the circular flow of money? (8B)

9. What are the different ways that the world market can affect the circular flow of money? (8C)

10. How can understanding the business structures of sole proprietorship, partnership, and corporation help in your personal
financial literacy? (16A)

11. What are the advantages and disadvantages of sole proprietorship, partnership, and corporation? (16B)




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