BEC - Basic Economic Concepts AP Classroom Correlation

Basic Economic Concepts AP Classroom Correlation

This module aligns with Unit 1: Basic Economic Concepts in our AP Classroom

Here's how it aligns:

Lessons:

  • Scarcity and Opportunity Cost Lesson - Please make sure you watch the videos from 1.1 and 1.2 in the AP Classroom  
  • Absolute and Comparative Advantage Lesson - This topic aligns with 1.3 in our AP Classroom.
  • Supply and Demand Lesson - This topic aligns with information and videos from 1.4, 1.5 and 1.6 in our AP Classroom.  

 

Expand the items below to learn more about each topic. The Essential Knowledge section is a great way to review the content you will be expected to know.

TOPIC 1.1 - Scarcity

     Learning Objectives     
 LO MOD 1.A - Define scarcity and economic resources.
     Essential Knowledge     
 EK MOD 1.A.1 - Individuals and societies are forced to make choices because most resources are scarce.

   

 

TOPIC 1.2 - Opportunity Cost and the Production Possibilities Curve (PPC)

     Learning Objectives     
        

LO MOD 1.B -

    1. Define (using graphs as appropriate) the PPC and related terms.
    2. Explain (using graphs as appropriate) how the PPC illustrates opportunity costs, tradeoffs, inefficiency, efficiency, and economic growth or contraction under various conditions.
    3. Calculate (using data from PPCs or tables as appropriate)
     Essential Knowledge     
        

EK MOD 1.B.1 - The PPC is a model used to show the tradeoffs associated with allocating resources.

EK MOD 1.B.2 - The PPC can be used to illustrate the concepts of scarcity, opportunity cost, efficiency, underutilized resources, and economic growth or contraction.

EK MOD 1.B.3 - The shape of the PPC depends on whether opportunity costs are constant, increasing, or decreasing.

EK MOD 1.B.4 - The PPC can shift because of changes in factors of production as well as changes in productivity/technology

EK MOD 1.B.5 - Economic growth results in an outward shift of the PPC.

 

 

TOPIC 1.3 Comparative Advantage and Gains from Trade

     Learning Objectives     
        

LO MKT 1.A - a. Define absolute advantage and comparative advantage. b. Determine (using data from PPCs or tables as appropriate) absolute and comparative advantage.

LO MKT 1.B - a. Explain (using data from PPCs or tables as appropriate) how specialization according to comparative advantage with appropriate terms of trade can lead to gains from trade. b. Calculate (using data from PPCs or tables as appropriate) mutually beneficial terms of trade.

    
     Essential Knowledge     
        

EK MKT 1.A.1 - Absolute advantage describes a situation in which an individual, business, or country can produce more of a good or service than any other producer with the same quantity of resources.

EK MKT 1.A.2 - Comparative advantage describes a situation in which an individual, business, or country can produce a good or service at a lower opportunity cost than another producer.

EK MKT 1.B.1 - Production specialization according to comparative advantage results in exchange opportunities that lead to consumption opportunities beyond the PPC

EK MKT 1.B.2 - Comparative advantage and opportunity costs determine the terms of trade for exchange under which mutually beneficial trade can occur.

 

    

 

TOPIC 1.4 Demand

     Learning Objectives     
        

LO MKT 2.A - a. Define (using graphs as appropriate) the law of demand. b. Explain (using graphs as appropriate) the relationship between the price of a good or service and the quantity demanded.

LO MKT 2.B - Explain (using graphs as appropriate) the determinants of demand.

    
     Essential Knowledge     
        

EK MKT 2.A.1 - The law of demand states there is an inverse relationship between price and quantity demanded, leading to a downward-sloping demand curve.

EK MKT 2.B.1 - Factors that influence consumer demand, such as changes in consumer income, cause the market demand curve to shift.

 

    

 

TOPIC 1.5 Supply

     Learning Objectives     
        

LO MKT 2.C - a. Define (using graphs as appropriate) the law of supply. b. Explain (using graphs as appropriate) the relationship between the price of a good or service and the quantity supplied.

LO MKT 2.D - Explain (using graphs as appropriate) the determinants of supply.

    
     Essential Knowledge     
        

EK MKT 2.C.1 - The law of supply states there is a positive relationship between price and quantity supplied, leading to an upward-sloping supply curve.

EK MKT 2.D.1 - Factors that influence producer supply, such as changes in input prices, cause the market supply curve to shift.

 

    

 

TOPIC 1.6 Market Equilibrium, Disequilibrium, and Changes in Equilibrium

     Learning Objectives     
        

LO MKT 2.E - Define (using graphs as appropriate) market equilibrium.

LO MKT 2.F - a. Define a surplus and shortage. b. Explain (using graphs as appropriate) how prices adjust to restore equilibrium in markets that are experiencing imbalances. c. Calculate (using graphs as appropriate) the surplus or shortage in the market experience an imbalance.

LO MKT 2.G - Explain (using graphs as appropriate) how changes in demand and supply affect equilibrium price and equilibrium quantity.

    
     Essential Knowledge     
        

EK MKT 2.E.1 - Equilibrium is achieved at the price at which quantities demanded and supplied are equal.

EK MKT 2.F.1 - Whenever markets experience imbalances — creating disequilibrium prices, surpluses, and shortages—market forces drive prices toward equilibrium.

EK MKT 2.G.1 - Changes in the determinants of supply and/or demand result in a new equilibrium price and quantity.

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