Concept 1: Foundations of Economics


PO 2. Determine how scarcity, opportunity costs, and trade-offs influence decision-making. PO 2



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PO 2. Determine how scarcity, opportunity costs, and trade-offs influence decision-making.



PO 2. Analyze how scarcity, opportunity costs, and trade-offs influence decision making.



PO 2. Analyze how scarcity, opportunity costs, and trade-offs, influence decision-making.



PO 3. Identify how voluntary exchange helps both buyers and sellers as in colonial trade in North America.
Connect with:
Strand 1 Concept 3
Strand 2 Concept 5



PO 3. Explain why specialization improves standards of living.
Connect with:
Strand 2 Concept 2



PO 3. Identify how governments and businesses make choices based on the availability of resources.



PO 3. Analyze how individuals, governments and businesses make choices based on the availability of resources.



PO 4. Interpret how trade promoted economic growth throughout U.S. history.
Connect with:
Strand 1 Concept 3
Strand 2 Concept 5
Strand 4 Concept 4



PO 4. Compare how money, as opposed to barter, facilitates trade.



PO 4. Describe the characteristics of a market economy:

  1. property rights

  2. freedom of enterprise

  3. competition

  4. consumer choice

  5. limited role of government




PO 4. Apply Adam Smith’s ideas of a market economy to:

  1. property rights

  2. freedom of enterprise

  3. competition

  4. consumer choice

  5. limited role of government







PO 5. Explain how trade promoted economic growth throughout world regions.
Connect with:
Strand 2 Concept 3
Strand 2 Concept 4






PO 5. Describe the impact of the availability and distribution of natural resources on an economy.



Concept 1: Foundations of Economics
The foundations of economics are the application of basic economic concepts and decision-making skills. This includes scarcity and the different methods of allocation of goods and services.



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