Honors Economics Syllabus
To pass this class you need to be able to respond to the essential questions and apply terms.
Chapter 1-2 Basic Economic Concepts and Introduction to Economic Systems
Essential Question: What are the fundamental concepts relevant to the development of a
Key Terms to KNOW: 6 core economic principles, opportunity cost, scarcity, incentives,
markets, types of economies, economy, efficiency, equity, marginal changes, TINSTAAFL,
market power, externality, market failure, standard of living, inflation, Phillips Curve;
assumptions, positive and normative statements, models, circular-flow diagram, production
possibilities frontier, micro- and macro-economics, demand curve, cause and effect.
Chapter 1 terms definition from workbook; problems and questions/short answer; self test;
advanced critical thinking (1-4);Chapter 2 self test, advanced critical thinking (1-3); read/analyze
article from St. Petersburg Times on Heidleberg Omen by Robert Trigaux.
Chapter 4, 5 Supply and Demand Issues
Essential Question: What is the relationship between quantity supplied and quantity
demanded? How does supply/demand decisions affect a market economy?
Key Terms to KNOW: law of demand, law of supply, demand and supply curves, demand and
supply schedules, substitutes, compliments, elasticity- inelastic, unit elastic, how prices allocate
resources, equilibrium (includes price and quantity), surplus, shortage, normal good and
inferior good, monopoly, oligopoly; income elasticity of demand, price elasticity of demand,
elasticity of demand.
Self tests, short answer and problems; advanced critical thinking questions; quiz; essays
Chapter 6, 7. 12, 13, 14- different forms of market organization
Essential Question: What are the different business structures? How do market structures
Key Terms to KNOW: price floor, price ceiling, tax types, tax incidence, tax wedge; surplus,
market efficiency, consumer surplus, willingness to pay, cost, equity, market failure; costs of
production (and formulas), short run and long run, profit, explicit costs, implicit costs, types of
profit,( fixed, average, marginal variable) costs, total revenue diseconomies of scale; price
takers, competitive market, average and marginal revenue, shut down, exit sunk cost;
monopolies, price discrimination, natural monopoly, arbitrage, perfect price discrimination.
Sole proprietorship, partnership, corporation, LLC, monopoly, oligopoly.
Self tests, short answer and problems; test; essays; readings and analysis
Chapter 15, 16, 17- Economic Performance
Essential Questions: What are the measurements and effects of changes in the economy as a
Key Terms to KNOW: GDP, GNP, and formulas, base year, net exports, intermediate production,
inflation, unemployment, total income and expenditure, final production, depreciation,
investment, government purchases; RPI, CPI, and formulas, inflation rate, GDP deflator, basket
of goods and services, Bureau of Labor Statistics, Nominal GDP, Real GDP, nominal interest rate,
real interest rate, indexed contract, COLA, standard of living, PPI; productivity, catch-up effect,
diminishing returns, economic growth and public policy, physical capital, renewable resource,
factors of production, nonrenewable resource, property rights, externality, inward and outward
oriented policies, public good, constant returns to scale, human capital.
Self tests, short answer questions, advanced critical thinking; project on growing the economy
Chapter 8, 15, 16 (revisit), 23- Fiscal Policy
Essential Questions: What are the consequences of government taxes and spending?
Key Terms to KNOW: welfare economics, willingness to pay, consumer surplus, costs, producer
surplus, efficiency, equity, market failure; inflation, unemployment, total income, total
expenditure, GDP, intermediate production, GNP, depreciation, consumption, investment,
government purchases, recession, depression, ability-to-pay, FICA, proportional, regressive and
progressive taxes, Social Security, federal debt, stagflation, aggregate supply-demand curves.
Federal Debt Clock, advising the White House research on Monetary Policy of the US; self tests
Chapter 21, 22- Banking Issues
Essential Questions: What are the tools of the Federal Reserve and how do they work? What
Key Terms to KNOW: barter, money, medium of exchange, store of value, unit of account,
liquidity, fiat money, Central Bank, monetary policy, reserve ratio, excess reserves, money
multiplier, The Fed, Federal Open Market Committee, currency; hyperinflation,
inflation/deflation, quantity theory of money, nominal variables, real variables, classical
dichotomy, monetary neutrality, velocity of money, quantity equation, inflation tax, nominal
interest rate, Fisher effect, Shoe Leather effect Menu cost, capital gains
Self tests, problems and short answers, advanced critical thinking; Run for the Gold projects
Chapter 18- 19- Finance
Essential Questions: How to increase and expand wealth on a personal or business level?
Key Terms to KNOW: finance, present value, compounding, diversification, future value,
idiosyncratic risk, credit cards, credit score, interest rate, stocks, bonds, common and preferred
stock, dividends, asset, liability, IRA, 401k, banks and mutual funds, private saving, national
saving, demand for loanable funds, crowding out, supply of loanable funds.
Self test; credit card project; LIFE IN THE FAST LANE; short-answer questions, advanced critical