MADISON PUBLIC SCHOOL DISTRICT
INTRODUCTION TO ECONOMICS
MHS Elective
Reviewed by: Lee Nittel,
Director of Curriculum and Instruction
Mark DeBiasse,
Supervisor of Humanities
Adopted by the Board: January, 2013
Members of the Board of Education:
Lisa Ellis, President
Patrick Rowe, Vice-President
David Arthur
Kevin Blair
Shade Grahling
Linda Gilbert
Thomas Haralampoudis
James Novotny
Superintendent: Dr. Michael Rossi
Madison Public Schools
359 Woodland Road, Madison, NJ 07940
www.madisonpublicschools.org
I. OVERVIEW
Introduction to Economics is a semester elective that introduces students to economics as a social science,
and teaches students to recognize and deal with the problem of scarcity. The course is divided into interrelated
micro and macro economic units: the United States economy, business organization, supply and demand,
money and banking, and contemporary economic problems.
II. GOALS (Linked to NJ Core Content Standards)
Standard 6.1: All students will utilize historical thinking, problem solving, and research skills to maximize their
understanding of civics, history, geography, and economics.
Standard 6.2: All students will know, understand, and appreciate the values and principles of American
democracy and the rights, responsibilities, and roles of a citizen in the nation and the world.
Standard 6.3: All students will demonstrate knowledge of world history in order to understand life and events in
the past and how they relate to the present and the future.
Standard 6.4: All students will demonstrate knowledge of US and NJ history in order to understand life and
events in the past and how they relate to the present and future.
Standard 6.5: All students will acquire an understanding of key economic principles.
Additionally, students should be able to:
1. Understand the nature of economics and why economic systems make choices.
2. Understand the fundamental operations of the modified free market U.S. economy.
3. Explain how supply and demand determines prices.
4. Identify economic problems and apply appropriate solutions to them.
III. CONTENT OUTLINE AND PACING
I. INTRODUCTION (2 weeks)
A. The nature of economics
B. The basic economic problem
C. Economic systems
D. Economic reasoning
II. THE U.S. ECONOMY (2 weeks)
A. Characteristic changes in our economy
B. Basic American economic institutions
C. Circular economic flow
III. BUSINESS ORGANIZATION (3-4 weeks)
A. Production and productivity
B. How firms organize
C. How corporations raise funds
D. The securities market
E. Law of Diminishing Returns
IV. DEMAND, SUPPLY, AND MARKET PRICE (3 weeks)
A. Law of Demand
B. Demand elasticity
C. Law of Supply
D. Supply elasticity
E. Determining market price
V. MONEY, CREDIT, AND BANKING (3 weeks)
A. Functions and development of money
B. Value of money: inflation and deflation
C. Causes of inflation
D. Types of financial institutions
E. Expanding bank deposits
F. The Federal Reserve System
G. Fiscal policy and monetary policy
VI.
CONTEMPORARY ECONOMIC PROBLEMS (2-3 weeks)
A. GNP and economic growth
B. Economic indicators
C. Income distribution
D. Poverty
VII. REVIEW AND FINAL EXAM (1 week)
** Two weeks of flexibility In a total of 18 weeks.
IV. UNIT OBJECTIVES AND ACTIVITIES
I. INTRODUCTION
A. Objectives: At the conclusion of this unit the student should be able to:
1. State the basic economic problem
2. List the four factors in production
3. Compare economic systems
4. State five goals of economic systems
5. Compare and c contrast the levels of economic reasoning
B. Activities:
1. "Lottery" choice simulation
2. "Island of Survival" simulation
II. THE UNITED STATES ECONOMY
A. Objectives: At the conclusion of this unit the student should be able to:
1. Evaluate five goals of the U.S. economy
2. Identify five characteristic changes in the U.S. economy during the 20th century.
3. List the four fundamental institutions of our economy.
4. Construct a circular flow of economic activity chart.
B. Activities:
1. Records: "My Sweet Lord" and "He's So Fine"
2. Copyright case activity
3. Film: Organization (Morris County AVA)
III. BUSINESS ORGANIZATION
A. Objectives: At the conclusion of this unit the student should be able to:
1. Identify three types of business organizations and list two advantages and two
disadvantages of each.
2. List three ways in which corporations obtain funds.
3. Evaluate potential growth and risk rates of basic securities.
4. Interpret securities statistical data.
5. State the Law of Diminishing Returns.
B. Activities:
1. Class speaker: Local business person.
2. Stock chart translating.
3. Identifying return on investment simulation game.
4. Film: Capitalism (Morris County AVA)
IV. DEMAND, SUPPLY, AND MARKET PRICE
A. Objectives: At the conclusion of this unit the student should be able to:
1. State the Law of Demand.
2. Identify the significance of demand elasticity.
3. State the Law of Supply.
4. Identify the significance of supply elasticity.
5. Explain the operation of price supports.
B. Activities:
1. Film: 60 Second Spot.
2. Supply and demand class survey simulation.
V. MONEY, CREDIT, AND BANKING
A. Objectives: At the conclusion of this unit the student should be able to:
1. Define money.
2. Explain two causes of inflation.
3. Identify major types of financial institutions.
4. Describe the functions of the Federal Reserve.
5. Explain the tools of fiscal policy and monetary policy.
B. Activities:
1. Film: Anatomy of An Inflation (Morris County AVA)
2. Money creation simulation.
VI. CONTEMPORARY ECONOMIC PROBLEM
A. Objectives: At the conclusion of this unit the student should be able to:
1. Define and identify the components of GNP accounting.
2. Identify and explain the four phases of the business cycle.
3. Compare and contrast different types of unemployment.
4. Construct and label a cost of living curve.
5. Evaluate the negative income tax.
B. Activities:
1. Transparency: "'Determining National Income Accounts"
2. Filmstrip: “Inflation and Unemployment"
3. Classroom debate: "Merits of Welfare"
4. Classroom discussion: "Negative Income Tax"
V. EVALUATION / GRADING
All objectives will be measured via tests, quizzes, homework assignments, essays, projects, and class
participation. A final exam will be administered to all students.
VI. RESOURCES
I. TEXT
A. Invitation to Economics, Wolken & Glocker, 1988.
II. OTHER - SELECT ARTICLES FROM:
A. U.S. News and World Report
B. Wall Street Journal
C. U.S.A. Today
D. Fortune