Unit VII – Economics Choices
Competency Goal 7: The learner will investigate how and why individuals and groups make economic choices.
• Scarcity and the necessity of balancing wants and needs may influence production, consumption and economic choices.
• Investment in capital and human resources can affect production and influence the economic choices of groups and individuals.
• The way in which economic systems address the key economic questions may impact the role of consumers and producers.
7.01 Describe the basic factors of production such as land, labor, capital, and entrepreneurial skills and their impact on economic activities.
• How do the basic factors of production influence the choices made by producers and consumers?
• What effects do limited natural resources have on the choices made by producers and consumers?
• How are the four factors of production used in satisfying wants and needs?
Factors of Production
(Factors of Production)
Four Basic Economic
7.02 Explain how scarcity influences producers and consumers to make choices.
• Why is scarcity the biggest problem faced by all economies?
• How does scarcity affect price and the production and consumption of goods?
• How can scarcity affect economic interdependence?
7.03 Compare examples of tradeoffs and opportunity costs of economic choices.
• Should a government offer economic incentives to a company considering locating to a particular area?
• What factors influence producers to increase or decrease output?
• What factors influence consumers to increase or decrease the consumption of goods?
Wants and Needs
7.04 Analyze the impact on economic activities of specialization, division of labor, consumption and production increases.
• How has mass production changed the way goods are produced and how does this affect markets?
• What effects do new technology, innovation and increased investment have on producers and consumers?
• What is the significance of education and training on the workforce?
Division of Labor
(Division of Labor)
Types of workers
7.05 Explain the impact of investment on human, capital, productive, and natural resources.
• How can increased investment in capital goods and human capital lead to lower prices for the consumer?
• What effect does education and training for the workforce have on the quality of goods and services?
• How might an increase in the Producer Price Index impact consumers?
Producer Price Index (PPI)
Output versus Input
Law of Diminishing
Education and training
7.06 Compare and contrast how different economic systems address key economic factors.
• What are the advantages and disadvantages for a society that practices Adam Smith’s “Invisible Hand” theory?
• Should the government become involved in the economy and what are the advantages and disadvantages of its involvement?
• How do economic decisions in a non-capitalistic system impact consumers?
Wealth of Nations
The Keynesian Theory
Before 1400 * 1400-1500 * 1501-1600 * 1601-1650 *1651-1700 *1701-1725 *1726-1750 * 1751-1775 *1776-1800