|Pillars of Student Success||
|Program Implementation||Program Grade-Level|
|Classroom Based||Grades 11-12|
|Program Concepts||Program Skills|
|Advantage, Demand, Economic systems, Exchange rates, Fiscal policy, Gross domestic product, Government, Income distribution, Inflation, Investment, Labor, Markets, Opportunity costs, Productivity, Scarcity, Supply, Trade||Applying information, Classifying, Critical thinking, Decision making, Giving reports, Graphing, Interpreting data, Math computation, Reading, Research, Taking notes, Writing|
Economics is a social science that studies how people, acting individually and in groups, decide to use scarce resources to satisfy their wants.
A key content of this chapter is the pillars of free enterprise—private property, specialization, voluntary exchange, the price system, market competition, and entrepreneurship.
In economics, demand is the various qualities of something consumers are willing and able to buy at many different prices at a particular time.
Supply is the various quantities of a product that producers are willing and able to sell at different prices at a particular time.
A marketing-clearing price exists when the amount of a product that buyers want to buy at that price is the same amount that sellers want to sell at that price.
People earn most of their income from jobs. They also earn some of it by putting their wealth to work. Over time, people increase their wealth by saving and investing. It pays for individuals to become familiar with the options available to investors and to shop for investments that offer the return, safety, and liquidity they desire.
Enterprising individuals who put their creative talent to work in both large and small companies drive innovation in the U.S. economy.
Financial markets play an important role in a free enterprise economy by channeling money from savers to businesses, which use it to invest in new capital resources.
Production of goods and services is important because it determines people's incomes and their consumption of goods and services.
The U.S. labor force has changed over the years. Beginning in the late 19th century, the percentage of all workers in agriculture began to drop while the percentage of workers in goods-producing and service-producing industries rose. The percentage of workers in service-producing industries has continued to rise in recent years, while the percentage in manufacturing and other goods-producing industries has fallen.
In a free enterprise economy, businesses compete by coordinating their efforts with one another to produce things that others value and are willing to pay for.
People debate the proper role and size of government in our free-market economy. The federal government has assumed a referee role in the economy to establish and enforce private property rights and the law, deal with external costs and benefits, ensure market competition, and protect consumers. The federal government also has taken on the management tasks of stabilizing the economy, promoting economic security, and providing public goods and services.
Money can be anything that is generally accepted as final payment for goods and services. Financial institutions such as commercial banks, savings and loan associations, and savings banks are essential to the smooth operation of the U.S. economic system.
United States economic activity is monitored carefully by government officials, members of the business community, and economists. Statistical measurements—called economic indicators—are used to assess the economy's health.
Instead of each of us trying to produce everything we consume, we concentrate our work on tasks we do best. We specialize. Then we use our earnings to buy the goods and services we want. World trade takes place in the same way.
Our world is becoming more and more globalized. Globalization is the process of increasing interdependence among countries and their citizens.
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