Intro to Economics
American History, the Founding Principles, Civics
and Economics
Essential Standard Correlations
ECONOMICS
CIVICS AND
GOVERNMENT
CE.E.1.1,
CE.E.1.2,
CE.E.1.4
FINANCIAL LITERACY
CE.PFL.1.1
Unit 9
CMS Social Studies – Revised 2014-2015
Unit Overview:
Economic choices, scarcity, factors/costs of
production, production possibilities,
productivity, types of economies
Conceptual Lens:
Economics
Authors: Sarah Matthews, Nicole Lipp, Elizabeth Mosley, Jon-Maria Ramseur
CONCEPT/CONTENT WEB
Civics and Government
 N/A
Conceptual
Lens:
Economics
Economics
 Types of Economies
 Trade-Offs
 Scarcity
 Opportunity Cost
 Productivity
Personal Financial Literacy
 Education and Life Choices
 Fiscally responsible citizen
CMS Social Studies – Revised 2014-2015
Authors: Sarah Matthews, Nicole Lipp, Elizabeth Mosley, Jon-Maria Ramseur
Essential Understandings (Generalizations) and Guiding (Essential) Questions:
Scarcity and the necessity of balancing wants and needs may influence production, consumption and economic choices.
a. How do the basic factors of production influence the choices made by producers and consumers?
b. What effects do limited natural resources have on the choices made by producers and consumers?
c. How are the four factors of production used in satisfying wants and needs?
d. Why is scarcity the biggest problem faced by all economies?
e. How does scarcity affect price and the production and consumption of goods?
f. How can scarcity affect economic interdependence?
g. What factors influence consumers to increase or decrease the consumption of goods?
.
Investment in capital and human resources can affect production and influence the economic choices of groups and individuals.
a. What factors influence producers to increase or decrease output?
b. How has mass production changed the way goods are produced and how does this affect markets?
c. What effects do new technology, innovation and increased investment have on producers and consumers?
d. What is the significance of education and training on the workforce?
e. How can increased investment in capital goods and human capital lead to lower prices for the consumer?
f. What effect does education and training for the workforce have on the quality of goods and services?
The way in which economic systems address the key economic questions may impact the role of consumers and producers.
a. Should a government offer economic incentives to a company considering locating to a particular area?
b. What are the advantages and disadvantages for a society that practices Adam Smith’s “Invisible Hand” theory?
c. Should the government become involved in the economy and what are the advantages and disadvantages of its
involvement?
d. How do economic decisions in a non-capitalistic system impact consumers?
CMS Social Studies – Revised 2014-2015
Authors: Sarah Matthews, Nicole Lipp, Elizabeth Mosley, Jon-Maria Ramseur
Unit Vocabulary
Tier 1
Tier 2
Tier 3
Low level, every day basic words
More complex, interdisciplinary words
Content specific, complex words
Wants
Needs
Goods
Services
Alternative
Costs
Benefits
Scarcity
Shortage
Producer
Consumer
Land/Natural Resources
Labor
Trade-off
Underutilization
Incentive
Cost-Benefit Analysis
Productivity
Specialization
Robotics
Innovation
Invention
Automation
Self-Interest
Motives
Competition
Factors of Production
Non-renewable resource
Renewable resource
Human Capital
Physical Capital
Capital Goods
Consumer Goods
Entrepreneur
Opportunity Cost
Thinking at the Margin
Production Possibilities Curve/Frontier
Wage
Salary
Fixed Costs
Variable Costs
Total Costs
Marginal Costs
Revenue
Marginal Revenue
Law of Diminishing Marginal Returns
Division of Labor
Assembly Line
White Collar worker
Blue Collar worker
Capitalism
Free Market Economy
Profit
Consumer Sovereignty
Market
The Wealth of Nations
CMS Social Studies – Revised 2014-2015
Authors: Sarah Matthews, Nicole Lipp, Elizabeth Mosley, Jon-Maria Ramseur
Laissez-faire
Invisible Hand
Circular Flow
Factor/Input Market
Product/Goods Market
Mixed Economies
Command Economies
Communism
CMS Social Studies – Revised 2014-2015
Authors: Sarah Matthews, Nicole Lipp, Elizabeth Mosley, Jon-Maria Ramseur
Key People
Adam Smith
Karl Marx
Friedrich Engels
By the end of this unit, students should be able to state…








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I can define scarcity and explain how it is the fundamental economic problem
I can identify the four factors of production and explain how they are used in the production of goods and services
I can differentiate trade-offs and opportunity costs
I can describe the roles of profit and price in a market economy
I can identify synonyms for a market economy
I can identify why private property is an essential part of a market economy
I can explain how competition regulates quality and price in a market economy
I can describe how laissez-faire and the Invisible Hand regulate a market economy
I can identify how incentives influence decision-making
I can identify factors other than profit that influence economic decisions
Performance Task and Scoring Guides/Rubric
Generalizations: The way in which economic systems address the key economic questions may impact the role of consumers and producers.
Performance Task Summary: Students will act as economic consultants and use six examples of businesses that need to adjust their prices. This
task provides students an opportunity to put into practice their understanding of supply and demand concepts by creating a presentation to assist the
six companies.
CMS Social Studies – Revised 2014-2015
Authors: Sarah Matthews, Nicole Lipp, Elizabeth Mosley, Jon-Maria Ramseur
Supply/Demand Performance Task
You have been hired as an economic consultant to a firm that is trying figure out how to set their prices. Unfortunately, they are very
confused on supply and demand issues. Their story is on the back of this page. Your task:

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Identify the firm’s major trouble areas and misconceptions
Analyze the decisions made by the company and explain, using economic terms, the problems or the flawed logic each situation
Evaluate the flawed decision/action/confusion and offer a strategic plan to improve future decisions.
EACH PERSON should use AT LEAST one graph and demonstrate AT LEAST one manipulation (increase/decrease, change price, etc)
during the presentation
Here is how you will be evaluated:
Criteria
Identifies a
flawed
economic
decision or misconception
Evaluates
recent actions
or thoughts and
offers logical,
economic plan
for future
decisions.
1
2
3
4
(Needs
Improvement)
(Below Standard)
(Meets
Standard)
(Exceeds Standard)
Explanation is
incorrect or too
vague to apply to
situation
- Recent actions
explained as
positive or
negative, but no
plan is offered
CMS Social Studies – Revised 2014-2015
-Explanation of decisions
explained in vague,
general terms not specific
to economics
- Flawed
decision is
accurately
explained
using
economic
terms
-In addition to meets, also gives
an analogy or similar “real world”
comparison that demonstrates the
problem
-Plan for future is vague in
terminology, but sets forth
a strategy for the firm to
better set prices
-Plan for
future uses
economic
terms to
explain a
price-setting
strategy for
the firm
AND
specifically
references
the previous
bad decision.
-In addition to everything in
meets, group provides a “real
world” example of a business or
industry that follows their plan.
Weight
X3
X3
Authors: Sarah Matthews, Nicole Lipp, Elizabeth Mosley, Jon-Maria Ramseur
Correctly
incorporates
graph into
presentation.
EACH group
member
explains at
LEAST one
problem during
presentation
- Graph or
explanation
includes a MAJOR
error
(i.e. – wrong shift,
multiple mis-labels,
inaccurate analysis,
etc)
- One or two
members dominate
the entire
presentation
-Graph is mostly correct,
but has minor error
(i.e. – missing one label,
failure to sequence, uses
wrong condition to explain
move)
- Graph is
entirely
labeled
correctly,
effectively
demonstrates
situation, and
is
economically
sound
- All 4
group
members
present a
significant
portion of
content and
use at least
one graph in
their portion
-In addition to meets, ALSO
relates graph to one other graph
X2
X1
TOTAL: _____/35
CMS Social Studies – Revised 2014-2015
Authors: Sarah Matthews, Nicole Lipp, Elizabeth Mosley, Jon-Maria Ramseur
FIRM 1
Dear Economist,
It is with a heavy heart that I write to you today. My firm, Go-Go Gadgets, is all over the place in the
market right now. We sell gadgets and we think we have the best gadgets in the world – certainly better than
that run down firm owned by the Inspector. However, currently, we have two warehouses FULL of gadgets in
addition to all the stores that carry them being fully stocked. We’re not sure how to deal with that exactly. To
give you a little bit of background, we first got into the market for gadgets a while back because we heard a lot
people saying “I don’t really need a gadget, but it’d be nice to have.” We thought that meant people wanted
them so we produced a whole bunch. We originally asked for $25 a gadget, which didn’t seem like much to us,
but we only sold about 100 or so and had thousands left over. Someone in our marketing department had the
idea that we should get a celebrity to endorse our gadgets, so we did. All of a sudden, we were selling exactly
what were making with no left-overs, but we didn’t change the price. Why do think that happened? We
anticipated even more sales so we doubled our production. Before long, we were overstocked again and were
losing a lot of money. Someone suggested we cut the price, but after investing all that money in double
production, I wasn’t about to do that, so we recently raised the price to $30 a gadget, which has gotten us to
where we are now. What are we doing wrong?
Sincerely,
Stan, the Gadget Man
CMS Social Studies – Revised 2014-2015
Authors: Sarah Matthews, Nicole Lipp, Elizabeth Mosley, Jon-Maria Ramseur
FIRM 2
Dear Economist,
My company has suggested I write you to get your help. Personally, I don’t think I need it, but I’m
willing to play along. I run an auto-repair shop. Our primary service is oil-changes. We’re the quickest and
best at what we do. “Get ‘em lubed, and get ‘em out.” That’s our motto! Lately, however, my workers have
been complaining that they’re bored, not enough work to do. I don’t understand that. We’re still charging the
same price we always did and we used to have cars lined up down the street. In fact, when we first started, we
were so cheap we had to turn customers away! I’m not sure why that was, but I’m told you can tell me. We
were already working as fast as we could when 3 brand new neighborhoods were built and a new highway was
put right through our town. Then it seemed like we had twice as many customers, but I REFUSED to raise
prices! I had them set where I wanted and I wasn’t going to change. After a while, however, some
knuckleheads down the road decided THEY wanted to open up an auto shop as well and they matched our
prices. It wasn’t long before another and another and another auto shop opened. Then, they started to compete
and lower prices! I liked where I had my prices and refused to change. Slowly, more and more people went to
these other places and I don’t understand why! We’re the best!
Annoyed,
Mac Kannic
CMS Social Studies – Revised 2014-2015
Authors: Sarah Matthews, Nicole Lipp, Elizabeth Mosley, Jon-Maria Ramseur
FIRM 3
Dear Economist,
My name is Cal Qulator. I run a mathematics tutoring business, but I failed my economics classes. I’m
not complaining, but I am confused about something that’s going on with my business right now. Let me start
from the beginning. When I first opened my business, the going rate for tutoring was $20. For that I was
willing to tutor 2 students a week. I advertised that for $40 I’d take 4 students and for $60 I’d take 6 students a
week. Surprisingly, even at $60, I had 6 students. However, when I switched to $80 – thinking I could get 8
students, 2 of my students quit because they couldn’t afford it and I had extra spaces. Why did that happen?
Anyway, I decided to go back to $60 and picked up those 2 students again. Recently, I inherited a large sum of
money and didn’t need to work anymore. I still wanted to tutor so I said I’ll offer 8 spots a week and NO
MORE. Strangely, even though I was still charging $60, I filled up my remaining two spots AND had people
calling wanting more spots. Apparently, this has something to do with this new math curriculum I guess. I only
have room in my schedule for 8 students and that’s it, so, like a good capitalist I increased my price to $90 and
all 8 spots filled. What’s going on now that wasn’t before?
Confused,
Cal Qulator
CMS Social Studies – Revised 2014-2015
Authors: Sarah Matthews, Nicole Lipp, Elizabeth Mosley, Jon-Maria Ramseur
FIRM 4
Dear Economist,
I work for a firm that makes Halloween Costumes. Every year we run into a problem and we’re hoping
you can help. Around late September, people start buying a whole bunch of our products. Seeing this, we start
producing like crazy and charging more money. Through October this works well and we make money and sell
most of what we make. Then, all of a sudden, our sales drop off like a blind man walking off a cliff. Why does
that happen? Secondly, we think we should be able to get the same price for our costumes year round as we do
during Halloween season. However, during off seasons, only a few people seem to be willing to buy at the
normal prices. What’s up with that? This year, we have heard that the government is moving to increase taxes
on costume makers. How will that affect us? Currently, we only have a few costumes ready to go and we are
trying to avoid the normal problems. What should we do?
Spookily yours,
Hal O’Ween.
CMS Social Studies – Revised 2014-2015
Authors: Sarah Matthews, Nicole Lipp, Elizabeth Mosley, Jon-Maria Ramseur
FIRM 5
Dear Economist,
I probably should have written sooner, but I’ve been too busy eating some of my delicious new ice cream
OrangeMintChocolateJellyBean. It’s going to be HUGE! Anyway, I’m writing you because I think my Ice
Cream Shop is in in trouble. Normally, I sell around 100 gallons of ice cream a month at about $5 a gallon.
There was one summer when, for the same price, I sold 200 gallons for a while – not sure why that happened
though. What do you think? What concerns me now is that the price of freezers – obviously where people put
their ice cream - has tripled in my neighborhood. People are combining freezers with their neighbors and
freezer space is at a premium. My thought was to double the price of my ice cream so that when people bought
it, they’d want to take more care of it. To make matters worse, my top ice cream maker left to join Ben and
Jerry’s and I have a bunch of novices who don’t produce as much! What is likely to happen with both of these
things going on at the same time? Is there any hope?
Creamily yours,
Neo Politan
CMS Social Studies – Revised 2014-2015
Authors: Sarah Matthews, Nicole Lipp, Elizabeth Mosley, Jon-Maria Ramseur
FIRM 6
Dear Economist,
Howdy Partner! My name is Red and I am THE premier rodeo promoter around these here parts. Boy
howdy, do I have a question for you. Here’s my sitcheeation. For years I have promoted a local rodeo that has
sold out every Saturday night. I charge $15 a ticket and every seat is sold. Sometimes, I even have people
waiting outside when all the seats are sold. This also gives rise to scalpers, which I HATE. They get more than
$15 a ticket!!! Why does that happen? Recently I decided to expand and I made my arena bigger by adding 6
new rows of seats so now I can get 8,000 people in the arena. But, I’m not selling out anymore! I don’t
understand this at all. It’s still the same good show, maybe even better! Why is this happening? The good
news is, though, the scalpers don’t come around as much. I hired some nerdy college kid who ran some kind of
economic analysis and he says what I need to do is lower my price, which I’m not to thrilled about. Would that
even work? Of course, my instinct is to do some more advertising and possibly even bring in more popular
rodeo stars. I’m wondering if then I could even raise my prices!? Whaddya think?
Ride on,
Red Peterson
CMS Social Studies – Revised 2014-2015
Authors: Sarah Matthews, Nicole Lipp, Elizabeth Mosley, Jon-Maria Ramseur
Unit Resources
Unit Number - 1
Unit Title
Resource Title
“Unwrapped” or “How It’s Made” clips
Taxman– Beatles
Location
Unwrapped: YouTube
You Tube
Summary
Video clips of how various products are made- can be used to
help students identify various factors of production
Use song lyrics to analyze economic themes. Could be used for
warm-ups and closures for students.
Should I Stay or Should I go? – The Clash
You Can’t Always Get what you want?- Rolling
Stones
Take the Money and Run– Steve Miller Band
She Works Hard for Her Money– Donna Summer
I Wanna Be Rich– Calloway
Get a Job– Sha-na-na
For the Love of Money– O’ Jays
Money– Michael Jackson
Rich Girl– Gwen Stefani
Material Girl– Madonna
If I Had a Million Dollars– Bare Naked Ladies
Money– Pink Floyd
Antz
Wealth of Nations by Adam Smith
Communist Manifesto by Karl Marx and Friedrich
Engels
I Love Lucy “Job Switching” episode
CMS Social Studies – Revised 2014-2015
DVD
Animated movie that demonstrates how an ant colony resembles
communism
Excerpts from “Wealth Of Nations”
Use excerpts from Smith’s work to discuss capitalism, free
market, self-interest, profit motive
Communist Manifesto Excerpts
Use excerpts from Marx/Engels’ work to discuss communism,
command economy
Job Switching (Youtube)
Use episode to demonstrate specialization, division of labor,
assembly line, productivity
Authors: Sarah Matthews, Nicole Lipp, Elizabeth Mosley, Jon-Maria Ramseur
Freakenomics clip “The Grade Experiment
The Grade Experiment
Mr. Clifford economics clip “Monsters Inc”,
“Monty Python
Econ Movies (Youtube)
CMS Social Studies – Revised 2014-2015
Use clip to highlight how incentives work and discuss the
advantages and disadvantages of using incentives
Clip uses Monsters Inc to demonstrate production possibilities.
The series has multiple episodes using concepts from macro and
micro economics. Movies of reference include Indiana Jones,
The Dark Night, Star Wars, Cars, Back to the Future
Authors: Sarah Matthews, Nicole Lipp, Elizabeth Mosley, Jon-Maria Ramseur