KUD
Grade: ___12_______
Subject/Course: ____Economics_________________________
Unit#:__1_________
Unit Name: ___Fundamental Economics Concepts____________
Standards/Elements for the Unit
(with DOK level identified)
Fundamental Economic Concepts
SSEF1 The student will explain why limited productive resources and unlimited wants result in scarcity,
opportunity costs, and tradeoffs for individuals, businesses, and governments.
a. Define scarcity as a basic condition that exists when unlimited wants exceed limited productive resources. DOK 1
b. Define and give examples of productive resources (factors of production) (e.g., land (natural), labor (human), capital
(capital goods), entrepreneurship). DOK 2
c. List a variety of strategies for allocating scarce resources. DOK 1
d. Define opportunity cost as the next best alternative given up when individuals, businesses, and governments confront
scarcity by making choices. DOK 1
SSEF2 The student will give examples of how rational decision making entails comparing the marginal
benefits and the marginal costs of an action.
a. Illustrate by means of a production possibilities curve the trade offs between two options. DOK 3
b. Explain that rational decisions occur when the marginal benefits of an action equal or exceed the marginal costs. DOK 3
SSEF3 The student will explain how specialization and voluntary exchange between buyers and sellers
increase the satisfaction of both parties.
a. Give examples of how individuals and businesses specialize. DOK 1
b. Explain that both parties gain as a result of voluntary, non-fraudulent exchange. DOK 2
SSEF4 The student will compare and contrast different economic systems and explain how they answer
the three basic economic questions of what to produce, how to produce, and for whom to produce.
a. Compare command, market, and mixed economic systems with regard to private ownership, profit motive, consumer
sovereignty, competition, and government regulation. DOK 3
b. Evaluate how well each type of system answers the three economic questions and meets the broad social and economic
goals of freedom, security, equity, growth, efficiency, and stability. DOK 3
SSEF5 The student will describe the roles of government in a market economy.
a. Explain why government provides public goods and services, redistributes income, protects property rights, and
resolves market failures. DOK 3
b. Give examples of government regulation and deregulation and their effects on consumers and producers. DOK 2
SSEF6 The student will explain how productivity, economic growth, and future standards of living are
influenced by investment in factories, machinery, new technology, and the health, education, and
training of people.
a. Define productivity as the relationship of inputs to outputs. DOK 2
b. Give illustrations of investment in equipment and technology and explain their relationship to economic growth. DOK 3
c. Give examples of how investment in education can lead to a higher standard of living. DOK 2
Know
(facts, formulas, vocabulary)
By the end of the unit, the students will
know:
SSEF
Scarcity (1a)
Opportunity Cost (1d)
Trade-off (1)
4 factors of Production (Productive
Resources) (1b)
Douglas County School System
3/22/2016
Understand
By the end of this unit, I want my
students to understand that…
Fundamental economic concepts are
essential to basic economic
understanding, and are the basis of all
economic thinking.
Do
(Skills)
SSEF1
a. Define scarcity. DOK 1
b. Define and give examples of
productive resources. DOK 2
c. List a variety of strategies for
allocating scarce resources. DOK 1
d. Define opportunity cost. DOK 1
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KUD
Allocate (1c)
Production possibilities curve (2a)
Rational Decision Making (2b)
Marginal Cost (2b)
Marginal Benefit (2b)
Division of Labor (3a)
Specialization (3a)
Voluntary, non-fraudulent exchanges
(3b)
3 Key economic questions (4)
Competition (4a)
Market economy (4a)
Mixed economy (4a)
Command economy (4a)
Profit motive (4a)
Consumer sovereignty (4a)
6 Broad social economic goods (4b)
Income redistribution (5a)
Private property rights (5a)
Private Ownership / Private Property
Rights (4a and 5a)
Market Failures (5a)
Government regulation (5b)
Government deregulation (5b)
Productivity (6a)
Standard of living (6c)
Investing in Human capital (6b)
Capital investments (6b)
SSEF2
a. Illustrate by means of a production
possibilities curve the trade offs
between two options. DOK 3
b. Explain rational decision making.
DOK 3
SSEF3
a. Give examples of how individuals
and businesses specialize. DOK 1
b. Explain that both parties gain as a
result of voluntary, non-fraudulent
exchange. DOK 2
SSEF4
a. Define 3 basic economic questions.
DOK 1
b. Compare and contrast the 3
economic systems. DOK 3
c. Evaluate how well each type of
system answers the three economic
questions and meets the broad social
and economic goals. DOK 3
SSEF5
a. Explain why government provides
public goods and services,
redistributes income, protects property
rights, and resolves market failures.
DOK 3
b. Give examples and effects of
government regulation and
deregulation. DOK 2
SSEF6
a. Define productivity. DOK 2
b. Give illustrations of investment in
equipment and technology and explain
their relationship to economic growth.
DOK 3
c. Give examples of how investment in
education can lead to a higher
standard of living. DOK 2
Douglas County School System
3/22/2016
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