WEEK2

Vocabulary
1. Explain the significance of good, consumer good, durable good, nondurable good, service, value,
paradox of value, utility, wealth, market, factor market, product market, economic growth, productivity,
human capital, division of labor, specialization, and economic interdependence.

Main Ideas
2. Explaining How do goods and services differ?
3. Organizing Use a graphic organizer similar to the one below to describe the different transactions that
take place in product markets.

4. Describing How is economic growth related to productivity?

Critical Thinking
5. How is value related to scarcity and utility?
6. Drawing Conclusions Why is investing in human capital beneficial?
7. Analyzing Visuals Look at Figure 1.3. How can individuals increase the flow of circular activity?
What effect would this increase have on the other parts of the economy?
8. Inferring How might major events such as labor strikes affect you and your community? Select a
possible event and write a brief paragraph about the potential effects.
Applying Economics
9. Specialization Provide at least three examples each of specialized workers and specialized capital that
are used in your school to provide the service of education. How would productivity change if they were
not available to your school? 1.4

WEEK 3
Vocabulary
1. Explain the significance of trade-off, opportunity cost, production possibilities frontier, economic
model, cost-benefit analysis, free enterprise economy, and standard of living.
Main Ideas
2. Illustrating Imagine you have $50 to spend. What one item would you buy? Complete the graphic
organizer below to illustrate your final choice, the opportunity cost of your choice, and the trade-offs.
Trade-offs

3. Explaining What decision-making strategies do economists recommend using?

Critical Thinking
4. The BIG Idea Why is it important for governments to understand trade-offs and opportunity costs?
Explain in a brief paragraph.
5. Synthesizing How does economics play a part in politics?
6. Analyzing Visuals Study the production possibilities frontier in Figure 1.6 on page 21. What does it
mean when the frontier shifts outward? What possible causes exist for such a shift?

Applying Economics
7. Economic Way of Thinking Search the newspaper and identify a major economic issue facing your
community or state. Identify possible solutions and prepare a decision-making grid to evaluate the
alternatives. What decision would you make? Write a short essay in which you explain your choice.

Visual Summary
WEEK 4

Vocabulary
1. Explain the significance of economic system, traditional economy, command economy, market
economy, market, capitalism, mixed economy, socialism, and communism.
Main Ideas
2. Describing Use a graphic organizer like the one below to describe how economic systems answer the
basic economic questions.

WHAT, HOW, and FOR WHOM?

Traditional
economy

Command economy

Market economy

Mixed economy

3. Explain how a command economy differs from the other economic systems.
Critical Thinking
4. The BIG Idea Why do market economies tend to be more efficient than traditional or command
economies?
5. Analyzing Visuals Look at the chart on page 40. Why does the top row show arrows on the left and
right?
6. Inferring Why are market economies more innovative than either traditional or command economies?
7. Analyzing How does a traditional economy differ from a mixed economy like that of the United States
today?
Applying Economics
8. Mixed Economy List specific examples to illustrate why the U.S. economy is categorized as a mixed
economy.

CASE STUDY
 WEEK 5

Vocabulary
1. Explain the significance of demand, microeconomics, market economy, demand schedule,
demand curve, Law of Demand, market demand curve, marginal utility, and diminishing
marginal utility.
Main Ideas
2. Describing What is the relationship between the demand schedule and the demand curve?
3. Determining Cause and Effect Using a graphic organizer like the one below, explain how a
change in price changes the quantity demanded of an item.

Critical Thinking
4. The BIG Idea How does the principle of diminishing marginal utility explain the slope of the
demand curve?
5. Inferring Although people buy more of a product when the seller lowers the price, some items
such as luxury goods are not offered at a lower price. Why?
6. Analyzing Visuals Look at the demand schedules on page 94. Assume that Julia is willing to
purchase different quantities at the same prices, and write down the new demand. Then plot a
new market demand curve that incorporates the changed demand.
7. Using Graphs Create your own demand schedule for an item you currently purchase. Next,
plot your demand schedule on a demand curve. Be sure to include labels.
Applying Economics
8. Diminishing Marginal Utility Using what you have learned about diminishing marginal
utility, find examples from your own experience and explain how they support this concept.

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Vocabulary
1. Explain the significance of change in quantity demanded, income effect, substitution effect, change in
demand, substitutes, and complements.
Main Ideas
2. Explaining What is the difference between a change in quantity demanded and a change in demand?
3. Describing Using a graphic organizer similar to the one below, describe the determinants of market
demand.
Critical Thinking
4. The BIG Idea How and why does a change in price affect the demand for substitutes? Provide an
example.
5. Analyzing Visuals Look at Figure 4.4. Assume that a new CD format will come out soon. What do
you think will happen to the market demand curve D? Explain.
6. Interpreting Locate an article in your newspaper illustrating at least one determinant of demand. Write
a brief explanation of the effect of the determinant(s).
Applying Economics
7. Change in Demand Name a product that you recently purchased because it was on sale. Identify one
substitute and one complement for the product and describe how your demand for the substitute and
complement changed because of the sale.