Middle School Social Studies (0089)

V. Economics

1. Microeconomics I:
   • Knows the concepts of scarcity, choice and opportunity costs.
   • Knows the differences among market, command and mixed economies.

2. Microeconomics II:
   • Demonstrates knowledge of types of market structure and the characteristics and behavior of firms in perfect competition, monopoly, oligopoly and monopolistic competition.
   • Demonstrates understanding of factor markets and the determination of income distributions and the returns to factors of production (wage, interest, rent, profits).

3. Macroeconomics I:
   • Demonstrates understanding of gross domestic product (GDP) and its components.
   • Demonstrates understanding of how unemployment is measured and its causes and consequences.
   • Understands the principle of supply and demand.
   • Knows how government intervention and public policies affect the economy (e.g., taxation, regulation).
   • Knows how consumer choices affect the economy.
   • Understands basic principles of personal finance (e.g., budgeting, interest, investment).
   • Understands how the factors of production (i.e., land, labor, capital and entrepreneurship) affect economic activity.
   • Knows different measures of economic performance (e.g., GDP, unemployment, inflation).
   • Understands basic functions of money and how it circulates through the economy.
   • Knows the interdependence of the global economy.