Explain (using graphs as appropriate) how the production possibilities curve (PPC) illustrates opportunity costs, trade-offs, inefficiency, efficiency, and economic growth or contraction under various conditions.

Calculate (using data from PPCs or tables as appropriate) opportunity cost.

Define absolute advantage and comparative advantage.

Determine (using data from PPCs or tables as appropriate) absolute and comparative advantage.

Explain (using data from PPCs or tables as appropriate) how specialization according to comparative advantage with appropriate terms of trade can lead to gains from trade.

Calculate (using data from PPCs or tables as appropriate) mutually beneficial terms of trade.

Define opportunity cost.

Explain the opportunity costs associated with choices.

Calculate the opportunity costs associated with choices.

Explain a decision by comparing total benefits and total costs (using a table or a graph when appropriate).

Calculate total benefits and total costs (using a table or graph where appropriate).

Define the key assumptions of consumer choice theory.

Explain (using a table or graph as appropriate) how a rational consumer’s decision making involves the use of marginal benefits and marginal costs.

Calculate (using a table or a graph when appropriate) how a rational consumer’s decision making involves the use of marginal benefits and marginal costs.

Define marginal analysis and related terms.

Explain a decision using marginal analysis (using a table or a graph when appropriate).

Unit 2: Supply and Demand

3 weeks

College Board MKT-3.A

College Board MKT-3.B

College Board MKT-3.C

College Board MKT-3.D

College Board MKT-3.E

College Board MKT-4.A

College Board MKT-4.B

College Board POL-1.A

College Board POL-1.B

What determines the market price for a good or service?

What causes market prices to change?

How does government policy affect market outcomes?

Define (using graphs as appropriate) key terms and factors related to consumer decision making and the law of demand.

Explain (using graphs as appropriate) the relationship between price and quantity demanded and how buyers respond to incentives and constraints.

Explain (using graphs as appropriate) buyers’ responses to changes in incentives and constraints.

Define (using graphs as appropriate) the law of supply

Explain (using graphs as appropriate) the relationship between price and quantity supplied.

Explain (using graphs as appropriate) producers’ (sellers’) responses to changes in incentives and technology.

Define measures of elasticity.

Explain (using graphs where appropriate) measures of elasticity and the impact of a given price change on total revenue or total expenditure.

Calculate (using data from a graph or a table as appropriate) measures of elasticity.

Define (using graphs as appropriate) market equilibrium, consumer surplus, and producer surplus.

Explain (using graphs as appropriate) how equilibrium price, quantity, consumer surplus, and producer surplus for a good or service are determined.

Calculate (using data from a graph or table as appropriate) areas of consumer surplus and producer surplus at equilibrium.

Define a surplus and shortage.

Explain (using graphs where appropriate) how changes in underlying conditions and shocks to a competitive market can alter price, quantity, consumer surplus, and producer surplus.

Calculate (using data from a graph or table as appropriate) changes in price, quantity, consumer surplus, and producer surplus in response to changes in market conditions or market disequilibrium.

Define forms of government price and quantity intervention.

Explain (using graphs where appropriate) how government policies alter consumer and producer behaviors that influence incentives and therefore affect outcomes.

Calculate (using data from a graph or table where appropriate) changes in market outcomes resulting from government policies.

Define tariffs and quotas.

Explain (using graphs where appropriate) how markets are affected by public policy related to international trade.

Calculate (using data from a graph or table as appropriate) changes in market outcomes resulting from public policy related to international trade.

Unit 3: Production, Cost, and the Perfect Competition Model

2.5 weeks

College Board PRD-1.A

College Board CBA-2.C

College Board CBA-2.D

College Board PRD-2.A

College Board PRD-3.A

How do businesses use marginal analysis to make decisions?

What drives producers’ decision making?

How can a market be perfectly competitive?

Define (using graphs where appropriate) key terms and concepts relating to production and cost.

Explain (using graphs where appropriate) how production and cost are related in the short run and long run.

Calculate (using data from a graph or table as appropriate) the various measures of productivity and short-run and long-run costs.

Define the different types of profit.

Explain how firms respond to profit opportunities.

Calculate a firm’s profit or loss.

Define (using graphs or data as appropriate) the profit-maximizing rule.

Explain (using a graph or data as appropriate) the profit-maximizing level of production.

Explain (using graphs or data where appropriate) firms’ short-run decisions to produce positive output levels, or long-run decisions to enter or exit a market in response to profit-making opportunities.

Define (using graphs as appropriate) the characteristics of perfectly competitive markets and efficiency.

Explain (using graphs where appropriate) equilibrium and firm decision making in perfectly competitive markets and how prices in perfectly competitive markets lead to efficient outcomes.

Calculate (using data from a graph or table as appropriate) economic profit (loss) in perfectly competitive markets.

Unit 4: Imperfect Competition

2 weeks

College Board PRD-3.B

College Board PRD-3.C

What drives producers’ decision making?

How are imperfectly competitive markets inefficient?

Define (using graphs where appropriate) the characteristics of imperfectly competitive markets and inefficiency.

Explain (using graphs where appropriate) equilibrium, firm decision making, consumer surplus, producer surplus, profit (loss), and deadweight loss in imperfectly competitive markets and why prices in imperfectly competitive markets cannot be relied on to coordinate the actions of all possible market participants and can lead to inefficient outputs.

Calculate (using data from a graph or table as appropriate) areas of consumer surplus, producer surplus, profit (loss), and deadweight loss in imperfectly competitive markets.

Define (using tables as appropriate) key terms, strategies, and concepts relating to oligopolies and simple games.

Explain (using tables as appropriate) strategies and equilibria in simple games and the connections to theoretical behaviors in various oligopoly market and non-market settings.

Calculate (using tables as appropriate) the incentive sufficient to alter a player’s dominant strategy.

Unit 5: Factor Markets

1.5 weeks

College Board PRD-4.A

College Board PRD-4.B

College Board PRD-4.C

College Board PRD-4.D

How are prices for resources determined?

How do firms use resource prices to make decisions?

Define (using graphs where appropriate) key terms and concepts relating to factor markets.

Explain (using graphs where appropriate) the relationship between factors of production, firms, and factor prices.

Calculate (using data from a graph or table where appropriate) the marginal revenue product and marginal resource cost.

Explain (using graphs where appropriate) firms’ and factors’ responses to changes in incentives and constraints.

Define (using graphs as appropriate) the characteristics of perfectly competitive factor markets.

Explain (using graphs where appropriate) the profit-maximizing behavior of firms buying labor (with other inputs fixed) in perfectly competitive markets.

Calculate (using data from a graph or table where appropriate) measures representing the profit-maximizing behavior of firms buying labor (with other inputs fixed) in perfectly competitive markets.

Define (using graphs as appropriate) the characteristics of monopsonistic markets.

Explain (using graphs where appropriate) the profit-maximizing behavior of firms buying labor (with other inputs fixed) in monopsonistic markets.

Calculate (using data from a graph or table where appropriate) measures representing the profitmaximizing behavior of firms buying labor (with other inputs fixed) in monopsonistic markets.

Unit 6: Market Failure and the Role of Government

2 weeks

College Board POL-2.A

College Board POL-2.B

College Board POL-2.C

College Board POL-3.A

College Board POL-3.B

College Board POL-3.C

College Board POL-4.A

College Board POL-5.A

College Board POL-5.B

How do markets fail?

What role should the government play in markets?

Define social efficiency.

Explain (using graphs where appropriate) why resource allocation in perfectly competitive markets is socially efficient.

Explain (using graphs where appropriate) how private incentives can lead to actions by rational agents that are socially undesirable (inefficient) market outcomes.

Explain equilibrium allocations in imperfect markets relative to efficient allocations (using graphs where appropriate) and why these markets are inefficient.

Calculate (using graphs where appropriate) the deadweight loss resulting from the production of a non-efficient quantity.

Define externalities.

Explain (using graphs where appropriate) how in the presence of externalities, private markets do not take into consideration social costs or social benefits.

Explain (using graphs where appropriate) how public policies address positive or negative externalities.

Define whether goods are rival and/or excludable.

Explain how the nature of rival and/ or excludable goods influences the behavior of individuals and groups.

Define government policy interventions in imperfect markets.

Explain (using graphs where appropriate) how government policies can alter market outcomes in perfectly and imperfectly competitive markets.

Calculate (using data from a graph or table as appropriate) changes in market outcomes resulting from government policies in perfectly competitive and imperfectly competitive markets.

Define measures of economic inequality in income and wealth.

Explain sources of income and wealth inequality.

Macroeconomics

Unit 1: Basic Economic Concepts

2 weeks

College Board MOD-1.A

College Board MOD-1.B

College Board MKT-1.A

College Board MKT-1.B

College Board MKT-2.A

College Board MKT-2.B

College Board MKT-2.C

College Board MKT-2.D

College Board MKT-2.E

College Board MKT-2.F

College Board MKT-2.G

Why do people and countries trade with one another?

What determines the market price for a good or service?

Define scarcity and economic resources.

Define (using graphs as appropriate) the PPC and related terms.

Explain (using graphs as appropriate) how the PPC illustrates opportunity costs, tradeoffs, inefficiency, efficiency, and economic growth or contraction under various conditions.

Calculate (using data from PPCs or tables as appropriate) opportunity cost.

Define absolute advantage and comparative advantage.

Determine (using data from PPCs or tables as appropriate) absolute and comparative advantage.

Explain (using data from PPCs or tables as appropriate) how specialization according to comparative advantage with appropriate terms of trade can lead to gains from trade.

Calculate (using data from PPCs or tables as appropriate) mutually beneficial terms of trade.

Define (using graphs as appropriate) the law of demand.

Explain (using graphs as appropriate) the relationship between the price of a good or service and the quantity demanded.

Explain (using graphs as appropriate) the determinants of demand.

Define (using graphs as appropriate) the law of supply.

Explain (using graphs as appropriate) the relationship between the price of a good or service and the quantity supplied.

Explain (using graphs as appropriate) the determinants of supply.

Define (using graphs as appropriate) market equilibrium.

Define a surplus and shortage.

Explain (using graphs as appropriate) how prices adjust to restore equilibrium in markets that are experiencing imbalances.

Calculate (using graphs as appropriate) the surplus or shortage in the market experience an imbalance.

Explain (using graphs as appropriate) how changes in demand and supply affect equilibrium price and equilibrium quantity.

Unit 2: Economic Indicators and the Business Cycle

2 weeks

College Board MEA-1.A

College Board MEA-1.B

College Board MEA-1.C

College Board MEA-1.D

College Board MEA-1.E

College Board MEA-1.F

College Board MEA-1.G

College Board MEA-1.H

College Board MEA-1.I

College Board MEA-1.J

College Board MEA-2.A

How is one person’s spending another person’s income?

How do we know if an economy is doing well or poorly?

Define (using the circular flow diagram as appropriate) how GDP is measured and its components.

Calculate nominal GDP.

Define the limitations of GDP.

Define the labor force, the unemployment rate, and the labor force participation rate.

Explain how changes in employment and the labor market affect the unemployment rate and the labor force participation rate.

Calculate the unemployment rate and the labor force participation rate.

Define the limitations of the unemployment rate.

Define the types of unemployment and the natural rate of unemployment.

Explain changes in the types of unemployment.

Define the consumer price index (CPI), inflation, deflation, disinflation, the inflation rate, and real variables.

Explain how price indices can be used to calculate the inflation rate and to compare nominal variables over time periods.

Calculate the CPI, the inflation rate, and changes in real variables.

Define the shortcomings of the CPI as a true measure of inflation.

Explain the costs that unexpected inflation (deflation) imposes on individuals and the economy.

Define nominal GDP and real GDP.

Calculate real GDP and the GDP deflator.

Define (using graphs and data as appropriate) turning points and phases of the business cycle.

Explain (using graphs and data as appropriate) turning points and phases of the business cycle.

Unit 3: National Income and Price Determination

2.5 weeks

College Board MOD-2.A

College Board MOD-2.B

College Board MOD-2.C

College Board MOD-2.D

College Board MOD-2.E

College Board MOD-2.F

College Board MOD-2.G

College Board MOD-2.H

College Board MOD-2.I

College Board POL-1.A

College Board POL-1.B

College Board POL-1.C

How do spending and production decisions made by households, businesses, the government, and the rest of the world affect an economy?

How do policy decisions regarding taxation and government spending affect an economy?

Define (using graphs as appropriate) the aggregate demand (AD) curve.

Explain (using graphs as appropriate) the slope of the AD curve and its determinants.

Define the expenditure multiplier, the tax multiplier, the marginal propensity to consume, and the marginal propensity to save.

Explain how changes in spending and taxes lead to changes in real GDP.

Calculate how changes in spending and taxes lead to changes in real GDP.

Define (using graphs as appropriate) the short-run aggregate supply (SRAS) curve.

Explain (using graphs as appropriate) the slope of the SRAS curve and its determinants.

Explain (using graphs as appropriate) how movement along the SRAS curve implies a relationship between the price level (and inflation) and unemployment.

Define (using graphs as appropriate) the short run and the long run.

Define (using graphs as appropriate) the long-run aggregate supply (LRAS) curve.

Explain (using graphs as appropriate) the short-run and long-run equilibrium price level and output level.

Explain (using graphs as appropriate) the response of output, employment, and the price level to an aggregate demand or aggregate supply shock in the short run.

Explain (using graphs as appropriate) the response of output, employment, and the price level to an aggregate demand or aggregate supply shock in the long run.

Define fiscal policy and related terms.

Explain (using graphs as appropriate) the shortrun effects of a fiscal policy action.

Calculate the short-run effects of a fiscal policy action.

Define why there are lags to discretionary fiscal policy.

Define automatic stabilizers.

Explain how automatic stabilizers moderate business cycles.

Unit 4: Financial Sector

2.5 weeks

College Board MEA-3.A

College Board MEA-3.B

College Board MEA-3.C

College Board POL-2.A

College Board MKT-3.A

College Board MKT-3.B

College Board MKT-3.C

College Board MKT-3.D

College Board POL-1.D

College Board POL-1.E

College Board MKT-4.A

College Board MKT-4.B

College Board MKT-4.C

College Board MKT-4.D

College Board MKT-4.E

What is money?

How is the price of money determined?

How do banks create money?

How do the actions of a country’s central bank affect financial decision making and the economy?

Define the principal attributes—liquidity, rate of return, and risk— associated with various classes of financial assets, including money.

Explain the relationship between the price of previously issued bonds and interest rates.

Define the nominal and real interest rate.

Explain the relationship between changes in nominal interest rates, expected inflation, and real interest rates.

Calculate the nominal and real interest rate.

Define money and its functions.

Calculate (using data as appropriate) measures of money.

Define key terms related to the banking system and the expansion of the money supply.

Explain how the banking system creates and expands the money supply.

Calculate (using data and balance sheets as appropriate) the effects of changes in the banking system.

Define (using graphs as appropriate) the money market, money demand, and money supply.

Explain (using graphs as appropriate) the relationship between the nominal interest rate and the quantity of money demanded (supplied).

Define (using graphs as appropriate) equilibrium in the money market.

Explain (using graphs as appropriate) how nominal interest rates adjust to restore equilibrium in the money market.

Explain (using graphs as appropriate) the determinants of demand and supply in the money market.

Explain (using graphs as appropriate) how changes in demand and supply in the money market affect the equilibrium nominal interest rate.

Define monetary policy and related terms.

Explain (using graphs as appropriate) the shortrun effects of a monetary policy action.

Calculate (using data and balance sheets as appropriate) the effects of a monetary policy action.

Define why there are lags to monetary policy.

Define (using graphs as appropriate) the loanable funds market, demand for loanable funds, and supply of loanable funds.

Explain (using graphs as appropriate) the relationship between the real interest rate and the quantity of loanable funds demanded (supplied).

Define national savings in both a closed and an open economy.

Define (using graphs as appropriate) equilibrium in the loanable funds market.

Explain (using graphs as appropriate) how real interest rates adjust to restore equilibrium in the loanable funds market.

Explain (using graphs as appropriate) the determinants of demand and supply in the loanable funds market.

Explain (using graphs as appropriate) how changes in demand and supply in the loanable funds market affect the equilibrium real interest rate and equilibrium quantity of loanable funds.

Unit 5: Long-Run Consequences of Stabilization Policies

2 weeks

College Board POL-1.F

College Board MOD-3.A

College Board MOD-3.B

College Board POL-3.A

College Board POL-3.B

College Board POL-3.C

College Board MEA-2.B

College Board MOD-1.C

College Board POL-4.A

How does an economy grow?

What is the relationship between inflation and unemployment?

How do monetary and fiscal policies affect the economy in the long run?

Explain (using graphs as appropriate) the effects of combined fiscal and monetary policy actions.

Define (using graphs as appropriate) the shortrun Phillips curve and the long-run Phillips curve.

Explain (using graphs as appropriate) short-run and long-run equilibrium in the Phillips curve model.

Explain (using graphs as appropriate) the response of unemployment and inflation in the short run and in the long run.

Explain (using graphs as appropriate) how inflation is a monetary phenomenon.

Define the quantity theory of money.

Calculate the money supply, velocity, the price level, and real output using the quantity theory of money.

Define the government budget surplus (deficit) and national debt.

Explain the issues involved with the burden of the national debt.

Define crowding out.

Explain (using graphs as appropriate) how fiscal policy may cause crowding out.

Define measures and determinants of economic growth.

Explain (using graphs and data as appropriate) the determinants of economic growth.

Calculate (using graphs and data as appropriate) per capita GDP and economic growth.

Explain (using graphs as appropriate) how the PPC is related to the long-run aggregate supply (LRAS) curve.

Explain (using graphs as appropriate) public policies aimed at influencing long-run economic growth.

Define supply-side fiscal policies.

Unit 6: Open Economy— International Trade and Finance

1.5 weeks

College Board MEA-4.A

College Board MKT-5.A

College Board MKT-5.B

College Board MKT-5.C

College Board MKT-5.D

College Board MKT-5.E

College Board MKT-5.F

College Board MKT-5.G

Why does the balance of payments balance?

Why does the price of one nation’s currency relative to another nation’s currency change?

How do changes in the value of a country’s currency affect that country’s economy?

Define the current account (CA), the capital and financial account (CFA), and the balance of payments (BOP).

Explain how changes in the components of the CA and CFA affect a country’s BOP.

Calculate the CA, the CFA, and the BOP.

Define the exchange rate, currency appreciation, and currency depreciation.

Explain how currencies are valued relative to one another.

Calculate the value of one currency relative to another.

Define the foreign exchange market, demand for currency, and supply of currency.

Explain (using graphs as appropriate) the relationship between the exchange rate and the quantity of currency demanded (supplied).

Define (using graphs as appropriate) the equilibrium exchange rate.

Explain (using graphs as appropriate) how exchange rates adjust to restore equilibrium in the foreign exchange market.

Explain (using graphs as appropriate) the determinants of currency demand and supply.

Explain (using graphs as appropriate) how changes in demand and supply in the foreign exchange market affect the equilibrium exchange rate.

Explain (using graphs as appropriate) how changes in the value of a currency can lead to changes in a country’s net exports and aggregate demand.

Explain (using graphs as appropriate) how differences in real interest rates across countries affect financial capital flows, foreign exchange markets, and loanable funds markets.

Social Studies Course Descriptions & Curriculum Maps

Global Studies

Advanced Placement Human Geography

United States History

Advanced Placement United States History

American Studies

American Government

Advanced Placement United States Government & Politics

Advanced Placement European History

Contemporary World Issues

Psychology of Living

Advanced Placement Psychology

Sociology

Advanced Placement Economics

Law in American Society

International Relations Honors

Modern America Through Pop Culture