Canada · Ontario Curriculum Expectations
Grade 12 Economics
This course examines how individuals and societies manage scarcity through economic decision making. Students analyze market structures, government policy, and international trade to understand the complexities of the modern global economy.
01The Economic Way of Thinking
Foundational concepts of scarcity, opportunity cost, and the basic economic problem of resource allocation.
Exploring how limited resources force individuals and societies to make trade-offs, introducing the fundamental economic problem.
Understanding the value of the next best alternative foregone when making a choice.
Examining how individuals and firms make decisions by comparing marginal benefits and marginal costs.
Using the Production Possibilities Curve to visualize opportunity cost, efficiency, and economic growth.
Comparing how different economic systems (traditional, command, market, mixed) answer the basic economic questions.
Analyzing how specialization and trade lead to increased efficiency and wealth for individuals and nations.
Understanding the principles of absolute and comparative advantage to explain patterns of international trade.
Examining how well-defined property rights and stable institutions foster economic growth and development.
Mapping the flow of goods, services, resources, and money between households, firms, and government.
Exploring the primary goals of economic policy (efficiency, equity, growth, stability) and the inherent trade-offs.
Examining the various roles of government in a mixed economic system, including regulation and provision of public goods.
Understanding the purpose of economic models, their simplifying assumptions, and their limitations.
02Price Discovery: Supply and Demand
Analysis of how buyers and sellers interact in a competitive market to determine prices and quantities.
Understanding the law of demand and the factors that cause the demand curve to shift.
Understanding the law of supply and the factors that cause the supply curve to shift.
The mechanics of price determination and the role of the price mechanism in clearing markets.
Analyzing how shifts in supply and demand curves affect equilibrium price and quantity.
Measuring the responsiveness of consumers to changes in price and income.
Measuring the responsiveness of producers to changes in price.
Exploring how demand responds to changes in income and the prices of related goods.
Evaluating the impact of government-imposed price floors and price ceilings on market outcomes.
Analyzing the impact of government taxes and subsidies on market equilibrium and efficiency.
Understanding the benefits that buyers and sellers receive from participating in a market.
Examining how market interventions or failures can lead to a loss of total surplus (deadweight loss).
Applying supply and demand analysis to various real-world scenarios and current events.
03Market Structures and Firm Behavior
Examination of how different competitive environments influence pricing, output, and innovation.
Understanding the various types of costs (fixed, variable, total, marginal) and revenue (total, marginal) for a firm.
Applying the marginal revenue equals marginal cost rule to determine a firm's optimal output level.
Examining the characteristics of perfectly competitive markets and their efficiency outcomes.
Analyzing the characteristics of monopolies, their pricing power, and the resulting inefficiencies.
Studying market structures with many firms offering differentiated products.
Studying strategic behavior and interdependence among a few large firms.
Applying game theory concepts, particularly the Prisoner's Dilemma, to understand strategic decision-making in oligopolies.
Analyzing situations where the market fails to allocate resources efficiently due to external costs or benefits.
Understanding the characteristics of public goods and common resources and why markets fail to provide them efficiently.
Exploring market failures arising from unequal information between buyers and sellers.
Examining the causes and consequences of income inequality and poverty, and policy responses.
Understanding government policies aimed at promoting competition and preventing monopolies.
04Macroeconomic Indicators and Policy
Measuring the health of the national economy and the tools used to manage economic cycles.
Distinguishing between microeconomics and macroeconomics and introducing key macroeconomic goals.
Understanding GDP, its components, and the limitations of using it as a measure of well-being.
Analyzing the phases of the business cycle (expansion, peak, contraction, trough) and their characteristics.
Analyzing the causes and consequences of joblessness, including different types of unemployment.
Understanding the causes and consequences of price instability, including different types of inflation.
Understanding the components of aggregate demand and the factors that cause the AD curve to shift.
Understanding the short-run and long-run aggregate supply curves and the factors that cause them to shift.
Using the AD-AS model to analyze macroeconomic equilibrium, recessions, and inflationary gaps.
The roles of government spending and taxation in stabilizing the economy.
Understanding the structure of the banking system and how commercial banks create money.
The role of central bank actions in stabilizing the economy through interest rates and money supply.
Analyzing the causes and consequences of government budget deficits and national debt.
05Personal Finance and Wealth Management
Empowering students with the tools to manage their own financial futures and navigate credit markets.
Developing personal budgets and understanding the importance of financial planning for future goals.
Evaluating different savings vehicles and understanding the power of compound interest.
Understanding the fundamentals of investing in stocks, bonds, and mutual funds.
Exploring different retirement accounts and strategies for long-term financial security.
Understanding the importance of credit scores, how they are calculated, and how to maintain a good credit history.
Understanding different forms of credit (e.g., credit cards, loans) and strategies for managing debt.
Navigating the complexities of student loans and other options for financing higher education.
Analyzing how individuals protect themselves against financial loss through various types of insurance.
Understanding strategies for identifying, assessing, and mitigating financial risks.
Learning about consumer rights, common financial scams, and resources for consumer protection.
Understanding different types of taxes (income, sales, property) and their impact on personal finances.
Exploring the economics of buying vs. renting, mortgages, and the costs of homeownership.
06Global Markets and International Trade
Exploring the interconnectedness of world economies and the impact of globalization.
Reviewing the benefits of trade and the reasons why nations engage in international exchange.
Understanding the components of a country's balance of payments, including the current and capital accounts.
How the value of money is determined in international markets and its effect on trade.
Comparing different exchange rate regimes and their implications for monetary policy and trade.
Analyzing the economic effects of tariffs and quotas on domestic industries, consumers, and global trade.
Debating the various arguments for and against government intervention in international trade.
The role of international organizations (e.g., WTO, NAFTA/USMCA) and trade agreements in shaping global commerce.
Analyzing the factors that allow some nations to grow rapidly while others struggle with poverty.
Examining the role of international aid, foreign direct investment, and global institutions in economic development.
Exploring the economic, social, and political impacts of increasing global interconnectedness.
Examining the role and impact of multinational corporations on global trade, investment, and labor.
Discussing contemporary global economic issues such as climate change, pandemics, and global inequality.