CLUSTER
Business and Marketing
COURSE
Economics of Business
WVEIS CODE
BM0404
Course Description:
The Skill Sets in this course are representative of the basic knowledge included in a Career and Technical
Education/Business and Marketing concentration. Incorporated into this course are elements of introductory
economic knowledge and skills necessary for a career in the business and marketing field. This course is
recommended as an Elective in the Marketing Management concentration.
SKILL SETS
Economic Principles
Free Enterprise System
Economic Concept of Demand
Economic Concept of Supply
Market-Clearing Price
Consumers, Savers and Investors
Business Financing
Production and Productivity
Government and the United States Economy
International Trade
1
Economics of Business
Skill Set
Knowledge Objectives
WVEIS 0404
Economic Principles
Students will demonstrate knowledge of
0404.1
 economic principles in today’s society.
Performance Objectives Students will
0404.2
0404.3
0404.4
0404.5
0404.6
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determine the nature of human wants and how they are satisfied.
examine the four factors of production.
illustrate the meanings of scarcity and opportunity cost.
compare the choices businesses face and a major goal of business.
assess the basic economic decisions (three economic questions) facing all
societies.
0404.7
 differentiate between the two branches of economics.
Skill Set
Free Enterprise System
Knowledge Objectives
Students will demonstrate knowledge of
0404.8
Performance Objectives
 pillars of free enterprise.
 main functions of money.
 goals of the U.S. economic system.
Students will
0404.9
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0404.10
0404.11
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0404.12
0404.13
0404.14
0404.15
0404.16
0404.17
0404.18
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0404.19
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analyze why private property, specialization, voluntary exchange, price
system, market competition and entrepreneurship are considered the pillars of
free enterprise.
illustrate command, traditional and mixed economic systems.
explain how the circular flow of money, resources and products explain the
functions of a free market economy.
examine the three main functions of money.
examine the goals of the U.S. economic system.
compare attributes of proprietorships, partnerships and corporations.
classify characteristics of entrepreneurs.
research the paths successful entrepreneurs followed.
distinguish the role of small business in the U.S. economy.
examine the types of information that can be helpful in starting a small
business.
determine how risk, return and liquidity affect various investment vehicles.
2
Skill Set
Knowledge Objectives
Economic Concept of Demand
Students will demonstrate knowledge of
0404.20
 how demand of goods and services impacts economic conditions.
Performance Objectives Students will
0404.21
0404.22
0404.23
0404.24
0404.25
Skill Set
Knowledge Objectives
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examine the role prices play in a market economy.
demonstrate how demand illustrates the price effect.
examine the law of demand.
distinguish the relationship between individuals’ demands and market demand.
illustrate price elasticity of demand of goods and services.
Economic Concept of Supply
Students will demonstrate knowledge of
0404.26
 how supply affects prices, consumer choices and manufacturing decisions.
Performance Objectives Students will
0404.27
0404.28
0404.29
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research how supply is related to opportunity cost.
examine the law of supply.
compare the relationship between market supply and the supply of individual
sellers.
0404.30
 illustrate price elasticity of supply on goods and services.
0404.31
 distinguish the factors that cause a change in supply.
Skill Set
Market-Clearing Price
Knowledge Objectives
Students will demonstrate knowledge of
0404.32
 market-clearing price.
Performance Objectives Students will
0404.33
0404.34
0404.35
0404.36
0404.37
Skill Set
Knowledge Objectives
0404.38
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determine how supply and demand interact to establish a market-clearing
price.
 examine the nature of shortages and surpluses and how market competition
eliminates them.
 determine how market-clearing prices motivate people to produce goods and
services.
 illustrate how changes in demand and supply result in changes in marketclearing prices.
 analyze how market-clearing prices provide important information and
incentives to consumers and producers.
Consumers, Savers and Investors
Students will demonstrate knowledge of
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factors that affect consumers, savers and investors.
3
Performance Objectives
0404.39
0404.40
0404.41
Students will
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recognize two main sources of household income.
research factors that influence wealth accumulation.
assess how personal budgets help people make good choices as consumers and
savers.
0404.42
 determine factors in making, saving and investing decisions.
0404.43
 compare the advantages and disadvantages of using credit.
0404.44
 distinguish how consumer interests are protected in our market economy.
Skill Set
Business Financing
Knowledge Objectives
Students will demonstrate knowledge of
0404.45
 business financing.
Performance Objectives Students will
0404.46
0404.47
0404.48
0404.49
0404.50
Skill Set
Knowledge Objectives
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analyze how financial markets help businesses obtain capital resources.
research how equity is used to finance business growth.
examine why the stock market is detrimental to the success of an economy.
distinguish between a balance sheet and an income statement.
determine various ways a small business can get started.
Production and Productivity
Students will demonstrate knowledge of
0404.51
 production and productivity.
Performance Objectives Students will
0404.52
0404.53
0404.54
0404.55
0404.56
0404.57
Skill Set
Knowledge Objectives
0404.58
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compute Gross Domestic Product (GDP).
assess how changes in Real GDP affect living standards.
analyze the main determinants of productivity.
research ways in which business managers have improved productivity.
examine how the law of diminishing marginal returns affects production costs.
discover the benefits of economies of scale.
Government and the United States Economy
Students will demonstrate knowledge of
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government’s role in the United States economy.
4
Performance Objectives
0404.59
0404.60
0404.61
Students will
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explore how the federal government spends and raises its money.
differentiate among proportional, progressive and regressive taxes.
debate the justifications for and the criticism of federal deficits and the
national debt.
0404.62
 research the functions and responsibilities of the Federal Reserve System.
0404.63
 analyze how people are affected by inflation.
0404.64
 illustrate the major indicators economists use to measure the health of the
economy.
Skill Set
International Trade
Knowledge Objective
Students will demonstrate knowledge of
0404.65
 international trade.
Performance Objectives Students will
0404.66
0404.67
0404.68
0404.69
0404.70
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0404.71
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compare monetary exchange rates.
differentiate absolute and comparative advantage.
debate the arguments for and against trade barriers.
examine the purpose of international trade organizations.
determine the relationship between economic development and population
growth.
research the worldwide changes that have occurred as a result of globalization.
5