COURSE OUTLINE
Unit 1: Fundamentals of Economics
Economics and Choice
 Chapter 1:The Economic Way of
Thinking
 Chapter 2: Economic Systems
 Chapter 3: The American Free
Enterprise
Unit 2: Microeconomics
Market Economies at Work
 Chapter 4: Demand
 Chapter 5: Supply
 Chapter 6: Demand, Supply, and
Prices
 Chapter 7: Market Structures
Unit 3:
Types of Business Organizations
 Chapter 8: Types of Business
Organizations
Unit 4: Macroeconomics
Money and Banking
 Chapter 10: Money and Banking
Unit 5:
Measuring and Monitoring Economic
Performance
 Chapter 12: Economic Indicators
and Measurements
 Chapter 13: Facing Economic
Challenges
Unit 6:
The Role of Government in the
Economy
 Chapter 14: Government
Revenue and Spending
 Chapter 15: Using Fiscal Policy
Unit 7:
The Global Economy
 Chapter 16: The Federal Reserve
and Monetary Policy
 Chapter 17: International Trade
Unit 8:
Personal Finance
 Chapter 11: Personal Finance &
Financial Markets
CP Economics Organizer
Chapter 5: Supply
The Big Picture:
The Law of Supply- when prices rise, quantity supplied increases. When prices go down, quantity supplies decreases. Supply curves reflect
this direct relationship between price and quantity supplied and slope upward from the lower left to the upper right. Producers follow the law
of supply because they want to earn a profit. So when the price of a good or service increases, they are willing to supply more of it. When
price is the only variable, change in the amount producers will supply is change in quantity supplied.
Analyzing the Costs of Production- producers conduct marginal analysis to make decisions about workers and output that affect profit.
Businesses hire workers and increase production until they reach profit-maximizing output—when marginal cost equals marginal revenue. In
other words, the cost to produce each additional unit of product equals the revenue from selling that unit of product.
Six Factors That Affect Supply- Change in supply occurs when producers supply different amounts at every price. Six factors cause this change.
Input Costs-when the price of resources needed to make a product increases, supply decreases. When input costs decrease, supply increases.
Labor Productivity- when workers can produce more goods and services in a given time, supply increases. Specialization and improved skills
can increase productivity. Technology- producers use technology to improve productivity and increase supply. Government Action- Excise
taxes increase producers’ costs and decrease supply. Subsidies help cover the cost of production and increase supply. Regulations that
increase the costs of doing business can decrease supply. Producers’ Price Expectations- future price expectation may affect current supply.
Farmers may decrease the current supply of crops and wait to sell at higher prices. Manufacturers may run extra shifts to increase supply if
they expect higher prices. Number of Producers- when more producers enter a market, supply increases.
Unit Pacing:
Homework
_____– The Law of Supply
(Reading Assignments)
_____ – Read p. 98-104
_____– Determinants of Supply
_____—Read p. 106-115
_____– Making Production Decisions
_____– Read p. 116-122
_____—911 Video Analysis
_____—Study Ch. 5
Vocabulary Quiz
& TEST
_____—RETEACHING ACTIVITIES:
What is Supply? What are the costs of
production? What factors affect supply?
NCEE STUDENT ACTIVITIES: Costs of
Production
____—Chapter 5 Vocabulary Quiz & TEST
Key Terms and Phrases:
1. Supply
2. Law of Supply
3. Supply schedule
4. Supply curve
5. Marginal product
6. Specialization
7. Increasing returns
8. Diminishing returns
9. Fixed cost
10. Marginal cost
11. Marginal revenue
12. Total revenue
13. Elasticity of supply
14. Variable costs
15. Depreciation
16. Input costs
17. Labor productivity
18. Excise tax
19. Regulation
20. Technology
Essentials Questions:
GPS
1. What is Supply?
2. Why do excise taxes and subsidies affect supply differently?
3. Explain the differences between fixed costs and variable costs.
1. SSEMI2
2. SSEMI3c
3. SSEF6
Course Website: http://www.gocats.org
Show What You Know!
Milestone Practice Questions
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