United States · Common Core State Standards
12th Grade Economics
This course explores how individuals, firms, and governments make choices in a world of scarcity. Students analyze market structures, macroeconomic indicators, and personal financial strategies to understand the trade-offs inherent in policy and private life.
01The Economic Way of Thinking
Foundational concepts of scarcity, opportunity cost, and the basic economic questions that every society must answer.
Investigating how limited resources force individuals and societies to make difficult trade-offs.
Exploring the concept of opportunity cost as the value of the next best alternative foregone when a choice is made.
Using the Production Possibilities Curve to visualize efficiency, growth, and underutilization of resources.
Examining factors that cause the PPF to shift outward (growth) or inward (contraction), such as technology and resources.
Comparing how market, command, and mixed economies allocate resources and define property rights.
Exploring the characteristics of traditional economies and the prevalence of mixed economic systems globally.
Applying the principle of thinking at the margin to determine optimal levels of consumption and production.
Analyzing how positive and negative incentives influence the choices of individuals and firms, and the potential for unintended outcomes.
Exploring Adam Smith's concept of the 'invisible hand' and the role of self-interest in market efficiency.
Visualizing the flow of goods, services, and money between households, businesses, and the government.
Expanding the circular flow model to include the financial sector (savings/investment) and the foreign sector (imports/exports).
Examining the necessity of clear property rights and the rule of law for economic development.
Exploring the economic rationale behind intellectual property rights (patents, copyrights) and their role in fostering innovation.
Analyzing the relationship between economic freedom, property rights, and a nation's prosperity.
02Microeconomics: Supply, Demand, and Markets
An analysis of price determination and the behavior of consumers and producers in various market structures.
Understanding why consumers buy more at lower prices and the factors that shift demand curves.
Identifying and analyzing the non-price determinants that cause the entire demand curve to shift.
Analyzing why producers offer more for sale at higher prices and the impact of production costs.
Identifying and analyzing the non-price determinants that cause the entire supply curve to shift.
Finding the price where quantity supplied equals quantity demanded and analyzing surpluses and shortages.
Analyzing the impact on equilibrium price and quantity when both supply and demand curves shift at the same time.
Evaluating the impact of government-imposed price controls like rent control and minimum wage.
Measuring how sensitive consumers are to changes in price, income, and other goods.
Measuring how sensitive producers are to changes in price and applying elasticity to total revenue decisions.
Characteristics of markets with many small firms selling identical products and the resulting efficiency.
Analyzing markets dominated by a single firm and the barriers to entry that protect them.
Analyzing markets dominated by a few firms and using game theory to understand their strategic interactions.
Markets with many firms selling differentiated products through branding and advertising.
A comprehensive review and comparison of the four main market structures: perfect competition, monopolistic competition, oligopoly, and monopoly.
03Market Failures and Government Role
Examining when markets fail to allocate resources efficiently and how the government intervenes.
Analyzing side effects of economic activity that impose costs on third parties, and potential government solutions.
Analyzing side effects of economic activity that provide benefits to third parties, and the role of government subsidies.
Defining characteristics of non-excludable and non-rivalrous goods and the challenge of providing them.
Exploring goods that are rivalrous but non-excludable, leading to overuse and depletion.
Exploring markets where one party has more information than the other before a transaction, leading to adverse selection.
Exploring markets where one party has more information than the other after a transaction, leading to moral hazard.
Measuring the distribution of wealth using tools like the Lorenz Curve and Gini Coefficient.
Exploring the primary causes of income inequality and its economic and social consequences.
Defining poverty, examining its causes, and evaluating the effectiveness of government programs to alleviate it.
Applying economic tools to solve environmental problems like climate change, comparing different policy approaches.
Exploring methods for valuing environmental goods and services and the concept of sustainable development.
The history and application of laws designed to prevent monopolies and protect competition.
Examining the economic rationale for government regulation and the effects of deregulation in various industries.
04Macroeconomics: Measuring Economic Performance
Analyzing aggregate indicators used to track the health of the national economy.
Calculating Gross Domestic Product using the expenditure and income approaches.
Distinguishing between nominal and real GDP and exploring the drivers of long-run economic growth.
Measuring the labor force, defining unemployment, and calculating the unemployment rate.
Distinguishing between frictional, structural, and cyclical unemployment and understanding the natural rate of unemployment.
Understanding the Consumer Price Index (CPI) and the causes of price instability.
Examining the various costs associated with inflation (e.g., shoe-leather costs, menu costs) and the dangers of deflation.
Analyzing the phases of expansion, peak, contraction, and trough, and key economic indicators.
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 their determinants.
Using the AD/AS model to determine equilibrium price levels and output, and analyzing the impact of shocks.
Exploring how an initial change in spending leads to a larger change in national income.
Analyzing the difficult scenario of rising inflation and rising unemployment caused by supply shocks.
05Monetary and Fiscal Policy
The tools used by the Federal Reserve and the Federal Government to stabilize the economy.
The structure and functions of the US central bank, including its independence.
Analyzing the Fed's primary tool: buying and selling government bonds to influence the money supply.
Analyzing the discount rate and reserve requirements as additional tools of monetary policy.
How changes in government spending are used to influence aggregate demand.
How changes in taxation are used to influence aggregate demand and disposable income.
Understanding how certain government programs automatically adjust to stabilize the economy without explicit policy action.
Evaluating the long-term impact of government borrowing and the difference between deficits and debt.
How the demand and supply for money determine nominal interest rates.
How the demand and supply for loanable funds determine real interest rates.
Comparing theories on government intervention and market self-correction, focusing on Keynesian principles.
Comparing theories on government intervention and market self-correction, focusing on Classical and Monetarist principles.
Analyzing policies focused on deregulation and tax cuts to spur production and long-run growth.
Why economic policy often takes time to implement and have an effect, and other limitations.
06The Global Economy
International trade, finance, and the interconnectedness of world markets.
The mathematical basis for trade and specialization, demonstrating mutual gains from trade.
Exploring how trade expands consumption possibilities and determining mutually beneficial terms of trade.
Analyzing the impact of tariffs and quotas on domestic prices, quantities, and welfare.
Examining various arguments for restricting international trade, such as infant industry and national security.
How the value of the dollar is determined against other currencies in a flexible exchange rate system.
Analyzing how changes in exchange rates affect a country's exports, imports, and overall economy.
Tracking the flow of goods, services, and income between nations in the current account.
Tracking the flow of financial assets (investments) between nations in the financial account.
The role of the WTO in promoting free trade and resolving trade disputes.
The roles of the IMF and World Bank in global financial stability and development.
Exploring the formation and impact of regional trade agreements like USMCA, EU, and ASEAN.
Challenges faced by developing nations in a globalized world, including poverty, debt, and institutional weaknesses.
Examining different strategies for promoting economic growth and poverty reduction in developing countries.
07Personal Finance
Applying economic principles to individual decision-making and wealth management.
The relationship between education, skills, and lifetime earnings, and making informed career decisions.
Strategies for managing cash flow, setting financial goals, and creating a personal budget.
Understanding the importance of saving, compound interest, and building an emergency fund.
Understanding different types of financial institutions and their services.
How credit is measured, the factors influencing credit scores, and accessing credit reports.
Understanding different types of debt (e.g., credit cards, mortgages, student loans) and strategies for managing them.
Basics of stocks, bonds, and the trade-off between risk and return.
Understanding the importance of diversification and the role of mutual funds and index funds.
Protecting assets and income through health, life, auto, and renters insurance.
Understanding W-2s, 1040s, and the difference between gross and net pay, including various payroll deductions.
Basics of filing income taxes, understanding deductions and credits, and tax planning.
Exploring employer-sponsored (401k) and individual (IRA) retirement accounts.
Understanding the role of Social Security and comprehensive retirement planning strategies.
08Current Issues and Behavioral Economics
Applying economic theory to contemporary challenges and psychological insights.
How psychological biases lead to 'irrational' economic decisions, challenging traditional economic assumptions.
Exploring how subtle interventions ('nudges') can influence choices without restricting options.
Analyzing the impact of AI and automation on labor markets, productivity, and economic growth.
Examining the economic implications of the gig economy for workers, businesses, and regulations.
Analyzing the unique challenges and market failures within the US healthcare system.
Exploring current policy debates surrounding healthcare access, cost, and quality.
Analyzing housing shortages, gentrification, and the economic impact of zoning laws.
Evaluating the costs and benefits of the US education system, including funding models and economic mobility.
The emergence of blockchain and its potential to disrupt traditional banking and finance.
Exploring the challenges and debates surrounding the regulation of cryptocurrency and digital assets.
Exploring the moral dimensions of market outcomes and policy choices, including concepts of justice and fairness.
Examining the ethical obligations of businesses beyond profit maximization.
Forecasting the shifting balance of global economic power and its implications.
Examining the challenges of achieving economic growth that is environmentally and socially sustainable on a global scale.