Unit Overview: Economic Systems (Chapter 2)

Focus Questions:
■ How are societies able to answer basic economic questions that ensure economic success for their society?
■ How does the flow of money within an economy ensure growth and stability?.

Above ● I can identify the difference between monetary and nonmonetary incentives and how changes in incentives cause changes in behavior.
Mastery ● I can describe how companies and people make decisions based on the factors of production.

Mastery I can identify the basic economic terms and how trade-offs and opportunity cost impact a company’s or person’s economic decisions.

Key Terms: Need to know: Applied Skills:

● Circular Flow of
Income
● Communism
● Consumer
● Continuum
Pathway
● Innovation
● How countries answer the three
● Invisible Hand basic economic questions. ● Analyze the elements of how
different societies set their
● Market ● How & why countries set their economic priorities.
economic goals.
● Producer ● Making decisions for
● The four basic economic personal gain or satisfaction.
● Product systems and how they function

do ALL of
In order to
Mastery

master the

be able to
you must

within (their) societies. ● Reading economic

content,

● Economic System ● Self-Interest

these

information in a graphing
to

● Efficiency ● Socialism ● How a free market works with format.

the aid of Adam Smith’s
● Equity ● Specialization “Invisible Hand.”
● Free Market ● How the circular flow of
income works within the
● Growth
economy.
(A) Highlight the key terms that you have heard before and
understand their definition GREEN.

(B) Highlight the key terms you have heard before, but do not
know or understand its definition ORANGE.

(C) Highlight the key terms you have NOT heard before
YELLOW.

Approaching I can repeat and understand the three basic economic questions societies must ask themselves and (with some help) goals they set for the society.
Mastery

Building a With some assistance, I can repeat the three basic economic questions societies must ask themselves and (with some help) goals they set for the society.
Foundation

No Evidence No evidence of effort to understand or seek assistance to understand content.