Prentice Hall. Foundations of Economics North Carolina Advanced Placement for Economics
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1 Prentice Hall Foundations of Economics 2007 C O R R E L A T E D T O North Carolina Advanced Placement for Economics
2 STANDARD COURSE OF STUDY SOCIAL STUDIES: 2003: Economics is designed to equip students with the knowledge and tools necessary to understand the mechanics and functions of the American economic system. Key elements include the study of scarcity, supply and demand, market structures, the role of government, national income determination, money and the role of financial institutions, economic stabilization, trade and interdependence, and comparative economic systems. As a result of acquiring information and developing a reasoned approach to decision making, students will be able to make informed choices in their respective roles as consumers, producers, employees, employers, borrowers, lenders, savers, investors as well as voters. Strands: Deductive Reasoning, Graph and Chart Interpretation, Data Analysis, Microeconomics, Macroeconomics, International Trade and Levels of Economic Activity Competency Goal 1 The learner will demonstrate the role of economic choices within a market economy. Objectives 1.01 Define the categories of productive resources and site examples of each. SE: 36-39, 57, 58, 59, 62, 296, 300, , 446, , 573 TR: AP Test Prep Workbook: 19-22, 26, 265, , 277, 278; MyEconLab AP Teacher Resources; AP 1.02 Explain the condition of scarcity and relate the concept of scarcity to choice, opportunity costs, and tradeoffs. SE: 2-9, 10-13, 18-21, 65-71, 72-78, 81-84, 85-87, 162, 163, 174, 175, 270, 296, 297, 298, 464, 578, 599, 699, 700, 799, , 886 TR: AP Test Prep Workbook: 1-7, 29-38, 39-45; 1.03 Identify and explain broad economic and social goals. SE: 3-9, 34-41, 76-78, 79, 80 TR: AP Test Prep Workbook: 1, 4-7; MyEconLab AP Teacher Resources; AP Teacher s Manual; Test Banks 1
3 1.04 Compare and contrast traditional, market, command, and mixed economic systems and their responses to production. SE: , , 167 TR: AP Test Prep Workbook: 85-87, 98; 1.05 Describe the impact of defined and enforced property rights on a market economy. SE: 163, 223, 224, 237, 258, 639, 640, 642, 643 TR: AP Test Prep Workbook: , 361; 1.06 Describe consumer response to positive and negative incentives. SE: 13, 18, 19, , , , 639, 640 TR: AP Test Prep Workbook: , ; 1.07 Predict how interest rates act as an incentive for borrowing and saving. SE: 459, 460, 461, 462, 467, 469, 562, 563, 564, 565, , , 667, 699, 700, , , 716, , 739, 740, 783, , 804, 805, 807, TR: AP Test Prep Workbook: , , 343, , , , 431, , ; MyEconLab AP Teacher Resources; AP 2
4 1.08 Formulate a savings or financial investment plan for a future goal. SE: , , 611, 613, 614 TR: AP Test Prep Workbook: , 352, 353; 1.09 Identify the conditions for voluntary exchange. SE: 81-84, 85, 90, , TR: AP Test Prep Workbook: 38-40, , 485, 486; MyEconLab AP Teacher Resources; AP 1.10 Analyze public policy issues affecting decision making within a community. SE: , , 191, 192, , , , 225, 227, 228, 229, , , TR: AP Test Prep Workbook: , , , 133, 134, , ; Competency Goal 2 The learner will analyze the role that supply and demand, prices, and profits play in determining production and distribution in a market economy. Objectives 2.01 Define supply and demand and identify factors that cause changes in market supply and demand. SE: 91-97, , , , , , , , 167, 168, , , , , , 209, , 222, 223, 227, 229, 231, 233, 234, , , , 282, 283, , , , , 480, 481, 485, , 586, , , 630, 631, 634, 635, 644, 645, , 709, 710, 716, , , , 754, 776, 777, 788, 789, 795, 798, 802, 817, 835, 839, , 863, 864, 871, 873, 875, 876, 887, ,
5 TR: AP Test Prep Workbook: 47-56, 57-66, 67-76, 77-83, 85, 86, 88-95, , , , , , , , , , , , , , 343, 344, , 352, 353, , 398, 401, 402, , , 433, , , , 471, 479, 480, 482, , , 502; MyEconLab AP Teacher Resources; AP Teacher s Manual; Test Banks 2.02 Explain the functions of supply and demand. SE: 91-93, 97, , 104, 113, 114, 121, 123, 124, 126, 129, 131, 133, 134, 136, , , 160, 167, 168, , 176, 178, , 183, 184, 186, , , , 209, , 222, 223, 227, 229, 231, 233, 234, , , 271, , 282, 283, , 450, 451, 454, 455, 457, 458, 461, 463, 464, 480, 481, 485, , 586, , , 631, 635, 644, 645, 701, , 709, 710, 716, , , , 754, 776, 777, 788, 789, 795, 798, 802, 817, 835, 839, 841, 842, 845, 847, 863, 864, 871, 873, 875, 876, 887, 899, 900, , 910, 912, 913, 914 TR: AP Test Prep Workbook: 47-56, 67-66, 67, 73, 74, 76, 79, 80, 81, 82, 88, 90-95, , , , , 127, 128, 131, 132, 137, , , , , , , 285, 287, 292, , , , 353, , 398, , 415, 416, 433, , , , 471, 479, 480, 482, , , 502, ; MyEconLab AP Teacher Resources; AP 4
6 2.03 Describe the role of producers and consumers in determining the equilibrium price. SE: , , 154, 155, 160, , 176, 178, , 183, 184, 186, , , , 209, , 222, 223, 227, 229, 231, 233, 234, , 282, 283, 451, 452, , 461, 462, 463, 464, , 481, 482, 485, , 586, , 631, 635, 644, 645, , 708, 709, 710, 716, , 792, 795, 798, 802, 835, 839, , 863, 864, 871, 873, 875, 876, 887, 904, 905 TR: AP Test Prep Workbook: 47, 48, 56-66, 93-95, 99, 100, , , , 127, 128, 131, 132, 137, , , 174, 177, , , 285, 287, 292, , , , 398, , 416, 433, , , , 471, 479, 480, 482, , , 502; MyEconLab AP Teacher Resources; AP Teacher s Manual; Test Banks 2.04 Explain the concept of consumer sovereignty. SE: The foundation of this standard can be found on , , TR: AP Test Prep Workbook: , ; 2.05 Explain the function of profit in a market economy. SE: 39, , 319, 325, 326, 327, 331, , , , 356, 357, 358, 362, 363, , , 379, , , 407, 408, 410, , 449, 450, 505, 575, 576 TR: AP Test Prep Workbook: 179, 180, 181, 182, 191, , , , 225, 228, 231, 232, 233, 237, 240, 241; MyEconLab AP Teacher Resources; AP Teacher s Manual; Test Banks 5
7 2.06 Describe the primary factors of production and their impact on the standard of living. SE: 36-39, 57, 58, 59, , 446, , , , TR: AP Test Prep Workbook: 19-22, 26, 265, , 277, , ; MyEconLab AP Teacher Resources; AP Teacher s Manual; Test Banks 2.07 Explain how financial markets channel funds from savers to investors. SE: 447, 448, , , , , 611, 613, 614 TR: AP Test Prep Workbook: 265, , 279, 280, , 352; MyEconLab AP Teacher Resources; AP Competency Goal 3 The learner will analyze the organization and role of business firms and assess the various types of market structures in the United States economy. Objectives 3.01 Compare and contrast the different types of business organization. SE: 324, 378, 388, 394, 437, 438, TR: MyEconLab AP Teacher Resources; AP 3.02 Identify various ways firms finance operations and explain the advantages and disadvantages of each way. SE: 296, 298, 299, TR: AP Test Prep Workbook: , 191, 273, 274; MyEconLab AP Teacher Resources; AP 6
8 3.03 Explain the evolution and role of labor organizations and cooperatives in market economies. SE: 585, 586 TR: AP Test Prep Workbook: 338, 341; 3.04 Describe the four market structures in the United States and the impact of government regulations on them. SE: 158, , , , , , , , , , , , , 443, 444 TR: AP Test Prep Workbook: , , , , , , ; 3.05 Describe the benefits of natural monopolies and the purposes of government regulation of these monopolies. SE: 243, 244, 350, 351, 353, 370, 402, 426, 427, 430, 433 TR: AP Test Prep Workbook: , 223, , 262; MyEconLab AP Teacher Resources; AP 3.06 Analyze the importance of competition among producers. SE: , TR: AP Test Prep Workbook: , 209, 210, 211, 212, ; 1MyEconLab AP Teacher Resources; AP 7
9 3.07 Explain the role of marginal analysis in determining prices and output. SE: 12, 13, 18, 72-78, 148, 149, 150, , 176, 177, 182, 187, 195, , , 230, 231, 233, 246, 247, 248, 249, 250, 255, 256, 257, , 282, 284, , 308, 311, 312, 319, 320, 325, 326, 328, 329, , , , 359, 360, 362, 363, , , , , , , 449, 450, 451, 452, 760, 762, 772, 773 TR: AP Test Prep Workbook: 1, 2, 4-8, 29, 30, 34-36, 42, 43, 85, 86, 88-90, 98, 99, , , 165, 166, , , 179, 180, , , , , , , , 237, 238, , 249, 250, , 262; MyEconLab AP Teacher Resources; AP Teacher s Manual; Test Banks Competency Goal 4 The learner will evaluate the roles of government in a market economy. Objectives 4.01 Explain the basic functions of government in a market economy. SE: 17, 34, 43-48, , , 192, , , , , , , , , 351, 352, , 372, , , 443, 444, , 495, 496, 500, 501, 520, 570, 571, , 615, 616, 640, 641, , , , , , , TR: AP Test Prep Workbook: 19, 20, 22-24, 26, 27, , , , , , , 161, 162, , 263, 281, 282, , 293, 294, 343, 344, 350, 351, 353, 354, 375, 376, , 384, 385, , , , ; MyEconLab AP Teacher Resources; AP Teacher s Manual; Test Banks 4.02 Identify ways the government responds to market failures. SE: , , , 192, , , , , , , 443, 444 8
10 TR: AP Test Prep Workbook: 85, 86, 93, 95, , , , , , 263; MyEconLab AP Teacher Resources; AP 4.03 Describe major revenue and expenditure categories and their respective proportions of local, state, and federal budgets. SE: 46-48, 57-59, , TR: AP Test Prep Workbook: 19, 20, 24, 26, 4.04 Explore ways tax revenue is used in the community. SE: 44, 46, 47, 486, 487, 488, 492, , TR: AP Test Prep Workbook: 19, 20, 24, 26; 4.05 Define progressive, proportional, and regressive taxation. SE: 200, 201, 209, 213, 215, 486 TR: AP Test Prep Workbook: 121, 122, , 132, 133; MyEconLab AP Teacher Resources; AP 4.06 Describe how and when costs of government policies may exceed benefits. SE: 158, , , , 489, 490 TR: AP Test Prep Workbook: , ; 9
11 4.07 Distinguish between federal deficits and the national debt and predict their future effects on the economy. SE: 8, 46, 609, 610, 612, 783, 784, 786, 806 TR: AP Test Prep Workbook: 343, 344, , 353, 354, , ; MyEconLab AP Teacher Resources; AP Teacher s Manual; Test Banks 4.08 Predict the effects of federal spending and taxation on budget deficits and surpluses and the national debt. SE: , 612, 613, 615, 784, 786, 787, 806 TR: AP Test Prep Workbook: 343, 344, 350, 351, 353, 354, , ; MyEconLab AP Teacher Resources; AP Teacher s Manual; Test Banks Competency Goal 5 The learner will examine the various ways economic performance is measured. Objectives 5.01 Describe the various economic performance indicators and explain how they are calculated. SE: , , , , , , , , 567, 568, , , , , , , , , , , , 754, 788, 789, TR: AP Test Prep Workbook: , , , , , , , ; MyEconLab AP Teacher Resources; AP 5.02 Explain the limitations of using GDP to measure economic welfare. SE: 498, , 522 TR: AP Test Prep Workbook: 295, , 306, 307; MyEconLab AP Teacher Resources; AP 10
12 5.03 Describe the nature and causes of business cycles and analyze the impact of major events on them. SE: 513, 514, , , 774 TR: AP Test Prep Workbook: 302, 303, 304, 306, 307, , ; MyEconLab AP Teacher Resources; AP Teacher s Manual; Test Banks 5.04 Identify the causes of inflation and analyze its impact on economic decisions. SE: , 557, 558, , 723, 748, 801, , , TR: AP Test Prep Workbook: , 328, 387, 388, 389, , 399, 400, 445, , ; MyEconLab AP Teacher Resources; AP 5.05 Assess how individual spending and production decisions impact levels of income, employment, and prices. SE: , TR: AP Test Prep Workbook: , 340; 5.06 Identify causes and effects of inflation, and analyze its impact on economic decisions. SE: , 557, 558, , 748, 789, 723, 801, , , TR: AP Test Prep Workbook: , 328, 387, 388, 389, , 399, 400, 445, , ; MyEconLab AP Teacher Resources; AP 11
13 5.07 Illustrate and explain the determinant of unemployment and inflation in an economy. SE: , , , 545, 546, , 557, 558, , , 723, 801, , , TR: AP Test Prep Workbook: , , 328, 331, 332, , 387, , 399, 400, , ; MyEconLab AP Teacher Resources; AP 5.08 Compare and analyze current unemployment rates at the local, state, and national levels. SE: 525, , 536, 539, 540, 542, 544, 545, 582, 584, , , TR: AP Test Prep Workbook: 309, 310, 313, 314, 316, 317, MyEconLab AP Teacher Resources; AP 5.09 Propose solutions for addressing issues of unemployment in the community. SE: 537, 538, 541, 546, 583, 584, 588 TR: AP Test Prep Workbook: 316, 318, 337; Competency Goal 6 The learner will describe the role of money and financial institutions in a market economy. Objectives 6.01 Explain the basic functions of money. SE: 648, 649, 655, 669, 670 TR: AP Test Prep Workbook: 365, 366, 367, 373; MyEconLab AP Teacher Resources; AP 12
14 6.02 Identify the composition of the money supply of the United States. SE: , 669, 670, 704 TR: AP Test Prep Workbook: , 373; 6.03 Explain the role of banks and other financial institutions in the economy of the United States. SE: 650, , , , , TR: AP Test Prep Workbook: 365, 366, , 373, 374, , 385; MyEconLab AP Teacher Resources; AP 6.04 Describe the organization and functions of the Federal Reserve System. SE: 656, , 676, 677, 678, 679, , , , 709, 710, 783, TR: AP Test Prep Workbook: 365, 366, , 374, 375, 376, , 384, 385, 431, 432, , ; MyEconLab AP Teacher Resources; AP 6.05 Compare and contrast credit, savings, and investment services available to the consumer from financial institutions. SE: 596, 597, 651, , , 702, 704 TR: AP Test Prep Workbook: 343, 344, 365, 366, , 373, 374; MyEconLab AP Teacher Resources; AP 6.06 Research and monitor financial investments, such as stocks, bonds, and mutual funds. SE: 447, 448, 596,
15 TR: AP Test Prep Workbook: 265, 266, 343, 344, 345; MyEconLab AP Teacher Resources; AP 6.07 Formulate a credit plan for purchasing a major item comparing different interest rates. SE: , TR: AP Test Prep Workbook: 343, 344, , 352, 353; MyEconLab AP Teacher Resources; AP Competency Goal 7 The learner will assess economic stabilization policies and how they impact the economy. Objectives 7.01 Define and explain fiscal and monetary policy. SE: 663, , , , , , 741, , , , , , TR: AP Test Prep Workbook: 365, 366, , 376, , 384, 385, 387, 388, , 399, 400, , , , 471, 472; MyEconLab AP Teacher Resources; AP 7.02 Describe the negative impact unemployment and unintended inflation has on the economy. SE: , 537, , 584, , 723, , , TR: AP Test Prep Workbook: 309, 310, 313, 314, 317, 387, 388, , 400, 445, 446, , ; MyEconLab AP Teacher Resources; AP 14
16 7.03 Explain how monetary policy affects the level of inflation. SE: , , 797, 798, 799, 800, 801, 804, 805, 807, 838, , 855 TR: AP Test Prep Workbook: 387, 388, , 399, 400, 431, 432, , , 461, 462, 468, 469, 472; MyEconLab AP Teacher Resources; AP 7.04 Analyze the role of taxation and fiscal policy in promoting price stability, full employment, and economic growth. SE: 783, 784, , 805, 807, 836, 837, 839, TR: AP Test Prep Workbook: , 441, 442, 461, 462, , 472; MyEconLab AP Teacher Resources; AP 7.05 Analyze the purpose of monetary tools used by the Federal Reserve. SE: 667, , , , , , 839, , TR: AP Test Prep Workbook: 375, 376, , 384, 385, 431, 432, , , , 471, 472; MyEconLab AP Teacher Resources; AP 7.06 Articulate the impact of monetary or fiscal policy on purchasing decisions. SE: 787, 788, 789, 799, 800, 803, 804, 805, 834, 835, 836 TR: AP Test Prep Workbook: , , ; MyEconLab AP Teacher Resources; AP 15
17 Competency Goal 8 The learner will analyze the international dimensions of economics. Objectives 8.01 Explain the benefits of trade among individuals, regions, and countries. SE: 641, , 883, 885, 886, 887 TR: AP Test Prep Workbook: 473, 474, , 485, 486; MyEconLab AP Teacher Resources; AP 8.02 Define trade barriers, such as quotas and tariffs, and site how different countries use them. SE: , , 887, 888 TR: AP Test Prep Workbook: 473, 474, , ; MyEconLab AP Teacher Resources; AP 8.03 Distinguish between balance of trade and balance of payments. SE: 861, , 913, 914, 915 TR: AP Test Prep Workbook: , 500; 8.04 Compare and contrast labor productivity trends in the United States and other developed countries. SE: 50, 102, , 630, 631, , TR: AP Test Prep Workbook: 355, 356, , 8.05 Discuss the concept of balance of trade and explain its benefits and costs. SE:
18 TR: AP Test Prep Workbook: 472, 473; 8.06 Explain the impact of exchange rates on purchasing power. SE: 889, , TR: AP Test Prep Workbook: 491, 492, , 501, 502; MyEconLab AP Teacher Resources; AP 8.07 Evaluate the benefits and costs of free trade. SE: , 887 TR: AP Test Prep Workbook: 473, 474, 483, 484, 488, 489; MyEconLab AP Teacher Resources; AP 17
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