•  The following are the California State, as well as OPUSD, Standards established for this course...

    PRINCIPLES OF ECONOMICS

    12.1 Students understand common economic terms and concepts and economic reasoning, in terms of:

        1.the causal relationship between scarcity and the need for choices

        2.opportunity cost and marginal benefit and marginal cost

        3.the difference between monetary and non-monetary incentives and how changes in incentives cause changes in behavior

        4.the role of private property as an incentive in conserving and improving scarce resources, including renewable and non-renewable natural resources

        5.the role of a market economy in establishing and preserving political and personal liberty (e.g., the works of Adam Smith)"

    Fundamental Economic Systems

    12.2 Students analyze the elements of the United States market economy in a global setting, in terms of:

        1.the relationship of the concept of incentives to the law of supply and the relationship of the concept of incentives and substitutes to the law of demand

        2.the effect of changes in supply and/or demand on the relative scarcity, price and quantity of particular products

        3.the role of property rights, competition, and profit in a market economy

        4.how prices reflect the relative scarcity of goods and services and perform the allocative function in a market economy

        5.the process by which competition among buyers and sellers determines a market clearing price

        6.the effect of price controls on buyers and sellers

        7.the role of domestic and international competition in a market economy in terms of goods and services produced, and the quality, quantity, and price of those products

        8.the role of profit as the incentive to the entrepreneurs in a market economy

        9.the functions of the financial markets

        10.the economic principles that guide the location of agricultural production and industry and the spatial distribution of transportation and retailing facilities

    12.3 Students analyze the influence of the U.S. government on the American economy, in terms of:

        1.how the role of government in a market economy often includes providing for national defense, addressing environmental concerns, defining and enforcing property rights, attempting to make markets more competitive, and protecting consumer rights

        2.the factors that may cause the costs of government actions to outweigh the benefits

        3.the aims of government fiscal policies (taxation, borrowing, and spending) and their influence on production, employment, and price levels

        4.the aims and tools of monetary policy and their influence on economic activity (e.g., the Federal Reserve)

    Microeconomics

    12.4 Students analyze the elements of the United States labor market in a global setting, in terms of:

        1.the operations of the labor market, including the circumstances surrounding the establishment of principal American labor unions, procedures used to gain benefits for its members, the effect of unionization, the minimum wage, and unemployment insurance

        2.the current economy and labor market including the types of goods and services produced, types of skills necessary, the effect of rapid technological change, and the impact of international competition

        3.wage differences among jobs and professions using the laws of demand and supply and the concept of productivity

        4.the effects of international mobility of capital and labor on the U.S. economy

    12.5 Students analyze the aggregate economic behavior of the United States economy by

        1.distinguishing between nominal and real data

        2.defining, calculating and explaining the significance of an unemployment rate, the number of new jobs created monthly, an inflation or deflation rate, and a rate of economic growth

        3.distinguishing between short-term and long-term interest rates and explaining their relative significance

    Macroeconomics

    12.6 Students analyze issues of international trade, and explain how the U.S. economy affects, and is affected by, economic forces beyond its borders, in terms of:

        1.the gains in consumption and production efficiency from trade with emphasis on the main products and changing geographic patterns of twentieth century trade among countries in the Western hemisphere

        2.the reasons for and the effect of trade restrictions in the Great Depression compared with the present day arguments among labor, business, and political leaders over the effects of free trade on the economic and social interests of various groups of Americans

        3.the changing role of international political borders and territorial sovereignty in a global economy

        4.explain foreign exchange, how exchange rates are determined, and the effects of the dollar gaining (or losing) value relative to other currencies a strong or weak dollar