Explain the types of economic systems (EC:007, LAP-EC-017) (CS)
Define the following terms: economic system, traditional economic system, command economic system, communism, socialism, and market economic system.
Explain why economic systems are needed.
Describe the characteristics of traditional economic systems.
Describe the characteristics of communism.
Describe the characteristics of socialism.
Describe the characteristics of a market economic system.
Explain how each type of economic system addresses the three economic questions.
Describe the strengths and weaknesses of traditional economies.
Describe the strengths and weaknesses of communist command economies.
Describe the strengths and weaknesses of socialist command economies.
Describe the strengths and weaknesses of market economies.
Discuss the measure of consumer spending as an economic indicator (EC:081) (SP)
Define the term Consumer Confidence Index (CCI). [The Conference Board defines the Consumer Confidence Survey as “a monthly report detailing consumer attitudes and buying intentions, with data available by age, income and region.”]
Describe how consumer spending reacts to shifts in the well-being of the economy.
Explain how the Consumer Confidence Index functions.
Describe how businesses use and react to changes in the Consumer Confidence Index.
Discuss government's options when the Consumer Confidence Index indicates a decreasing trend (e.g., issuing a tax rebate or taking other action to stimulate the economy).
Describe the economic impact of inflation on business (EC:083, LAP-EC-028) (SP)
Describe the relationship between price stability and inflation.
Explain problems associated with deflation.
Discuss reasons why the inflation rate should be above zero.
Explain how businesses can use the Consumer Price Index.
Discuss the purpose of the Consumer Price Index (CPI).
Describe how the Consumer Price Index is determined.
Identify the major kinds of consumer spending that make up the Consumer Price Index.
Explain how the Consumer Price Index is used to find the rate of inflation.
Describe limitations on the use of the Consumer Price Index.
Explain the concept of Gross Domestic Product (GDP) (EC:017, LAP-EC-001) (SP)
Define the following terms: gross domestic product (GDP), personal consumption expenditures, gross private domestic investment, government purchases of goods and services, net exports of goods and services, trade deficit, trade surplus, uncounted production, underground economy, and double counting.
Identify the categories of goods and services that make up GDP.
Describe problems encountered in calculating GDP.
Explain the importance of a country's GDP.
Describe ways to increase GDP.
Describe how the government responds to changes in GDP.
Describe ways that businesses respond to changes in GDP.
Discuss the impact of a nation's unemployment rates (EC:082, LAP-EC-029) (SP)