4U Economics

Class Outline

Classes will proceed in the order indicated below. Students are responsible to check off the classes as they are completed and to always be mindful of the objectives and requirements associated with the next class. Students are expected to complete any required reading and print off any handouts for a given class BEFORE that class.

Please Note: Senior school instructors reserve the right to present unannounced quizzes at any point in the term.
Students can expect such pop quizzes to cover the material taught within the previous one or two classes.


Unit #1: Economic Theory & Consumer Behaviour

Lesson: 1    (Date Completed: _______________________)
Topic: Introduction to the Science of Economics: the pursuit of social science;  constructing studies; constructing models (graphs): variables, axis, correlations (positive, negative, undefined), scatter-graphs; interpreting relationships, analytical errors (post-hoc fallacy, composition error)
References: text, chapter #1, pages 12-25; class notes; handout; PowerPoint

Lesson: 2    (Date Completed: _______________________)
Topic: Reviewing Introductory Economic Concepts: concepts of scarcity, direct cost, and opportunity cost; choosing at the margin; production possibility curve; the law of increasing costs
References: text, chapters #1 & 2; class notes; handout; PowerPoint

Lesson: 3    (Date Completed: _______________________)
Topic: Economic Systems: three economic questions; centrally planned, mixed economy, market economy
References: text, chapter #1, pages 3-8, and chapter 5, pages 103-106; class exercise; PowerPoint

Lesson: 4    (Date Completed: _______________________)
Topic: The Mechanics of a Market System: supply, demand, the law of supply, the law of demand, equilibrium, understanding off-equilibrium forces
References: text, chapter #3; assignment sheet; PowerPoint

Lesson: 5    (Date Completed: _______________________)
Topic: Analyzing Changes in Supply and Demand: changes in quantity supplied/demanded vs. changes in supply/demand, supply shifters, demand shifters
Reference: text, chapter #3; PowerPoint

Lesson: 6    (Date Completed: _______________________)
Topic: Analyzing forms of Market Interference: price ceilings, price floors, excise taxes (calculating how much of the tax each party pays); dead-weight loss
Reference: text, chapter #6, PowerPoint

Lesson: 7    (Date Completed: _______________________)
Topic: Exploring Mathematical Functions related to Supply and Demand: shift parameters vs. price; expressions for the intercept and slope; linear equation for demand; linear equation for supply; equation for market equilibrium, using a linear equation to form a table of values; solving for price, substituting price to find equilibrium quantities
Reference: text, chapter #3, "Mathematical Note" on pages 78 - 79); PowerPoint

Lesson: 8 (supplementary)   (Date Completed: _______________________)
Activity: AP Calibration, Unit 1: exploring the style and sophistication of AP exam questions addressing material from this unit
Reference: AP Calibration Assignment: Introductory Concepts; text, chapters #1, 2, 3 (including Mathematical Note of chapter 3); chapter 5, pages 103-106; chapter 6; 5 Steps to a 5, chapters #1 and 2; PowerPoint

Lesson: 9    (Date Completed: _______________________)
Topic: Elasticity of Supply and Demand: elasticity defined; elastic, inelastic, unitary, elasticity coefficient
Reference: chapter #4; assignment sheet

Lesson: 10    (Date Completed: _______________________)
Topic: Calculating Elasticity: calculating elasticity; ARC vs. point formula; price elasticity of demand and supply, income elasticity, cross elasticity
Reference: text, chapter #4; assignment sheet

Lesson: 11    (Date Completed: _______________________)
Topic: Consumer Behaviour: utility / marginal utility, diminishing marginal utility, utility maximization, equimarginal principle, "water-diamond paradox," utility of not spending (i.e. saving), consumer surplus, price discrimination
Reference: text, chapter #7; handouts: Exploring Consumer Behaviour; Types of Goods

Lesson: 12 (Supplementary)    (Date Completed: _______________________)
Activity: AP Calibration, Unit 2: exploring the style and sophistication of AP exam questions addressing material from this unit
Reference: AP Calibration Assignment: Consumer Bahaviour; 5 Steps to a 5, chapter #3; PowerPoint

Lesson: 13    (Date Completed: _______________________)
Activity 1: Review: Economic Theory & Consumer Behaviour
Reference: text, chapters #4 and 7; 5 Steps to a 5, chapter #3; review sheet

Lesson: 14    (Date Completed: _______________________)
Activity 1: Test: Economic Theory & Consumer Behaviour
Reference: text, chapters #4 and 7; 5 Steps to a 5, chapter #3; review sheet


UNIT #2: The Firm, Output, and Costs

Lesson: 17    (Date Completed: _______________________)
Topic: Production Theory: explicit costs, and implicit costs; economic profit vs. accounting profit; the production function: time periods, short-run vs. long-run, fixed and variable factors, increasing returns, diminishing returns, economic efficiency
Reference: text, chapters #9 and 10

Lesson: 18    (Date Completed: _______________________)
Topic: Introduction to Short-Run Costs and Revenue: total cost model: total revenue, total costs, three phases of the production run: start-up, increasing returns, and diminishing returns, total fixed costs, total variable costs, total costs (variable and fixed combined)

Reference: text, chapter #10

Lesson: 19    (Date Completed: _______________________)
Topic: Short-Run Production Costs in the Average Cost Model: average cost model: average fixed, variable, and total costs; marginal revenue, marginal costs (average cost model), profit maximization
Reference: text, chapter #10

Lesson: 20    (Date Completed: _______________________)
Topic: Long-Run Production Costs: short-run vs. long run average costs; increasing and decreasing returns to scale (aka: economies of scope); determining the optimal size firm for a given production run
Reference: text, chapter #10

Lesson: 21A    (Date Completed: _______________________)
Activity: Review: The Firm, Profit, and the Production Run
Reference: text, chapters #9, 10 and 11; 5 Steps to a 5: chapter 5; review sheet

box Lesson: 21B    (Date Completed: _______________________)
Activity: Test: The Firm, Profit, and the Production Run
Reference: text, chapters #9, 10 and 11; 5 Steps to a 5: chapter 5; review sheet 

box Lesson: 21C    (Date Completed: _______________________)
Activity: Test Take-Up: The Firm, Profit, and the Production Run
Reference: text, chapters #9, 10 and 11; 5 Steps to a 5: chapter 5; review sheet

Lesson: 22    (Date Completed: _______________________)
Topic: Introduction to Market Structure: differentiating characteristics of perfect competition, monopolistic competition, oligopoly, and monopoly
Reference: text, chapter #9

Lesson: 23    (Date Completed: _______________________)
Topic: Perfect Competition Output Levels: understanding flat marginal revenue and demand; profit maximization (MR=MC); economic profit vs. economic loss; break-even point, shut down point
Reference: text, chapter #11

Lesson: 24    (Date Completed: _______________________)
Topic: Economic Efficiency of Perfect Competition: production at minimal average total costs, maximum output, lowest price
Reference: text, chapter #11

Lesson: 25    (Date Completed: _______________________)
Topic: Perfectly Competitive Supply: short-run motives for taking economic losses; deriving supply curves for perfectly competitive firms in the short-run and the long-run
Reference: text, chapter #11

Lesson: 26    (Date Completed: _______________________)
Topic: Monopoly Fundamentals: monopoly output levels, monopoly pricing, monopoly profits
Reference: text, chapter #12

Lesson: 27    (Date Completed: _______________________)
Grade 12 Activity: Review: Basic Market Structures
AP Activity: Review: Basic Market Structures
Reference: text, chapters #9, 10 and 11; 5 Steps to a 5: chapter 5; review sheet

Lesson: 28B    (Date Completed: _______________________)
Grade 12 Activity: Test: Basic Market Structures
AP Activity: Test: Basic Market Structures
Reference: text, chapters #9, 10 and 11; 5 Steps to a 5: chapter 5; review sheet

 

Unit #3: Factor Markets, Market Failure, and the Role of Government

Lesson: 37    (Date Completed: _______________________)
Topic: Introduction to Factor Markets / The Firm's Supply and Demand for Labour: review payments for various factors of production; derived demand; marginal revenue product theory of wages
Reference: text, chapter #17

Lesson: 38    (Date Completed: _______________________)
Topic: Market Supply and Demand for Labour: supply and demand for labour within a competitive market versus a monopsony (single buyer); market power; least-cost hiring of multiple inputs; wage-transfer mechanism
Reference: text, chapter #17

Lesson: 39    (Date Completed: _______________________)
Topic: Determinants of Resource Demand and Least-Cost Hiring of Multiple Inputs: factors shifting input demand, factors effecting elasticity of input demand, least-cost hiring rule, labour vs. capital, physical vs. financial capital, equimarginal principle
Reference: PowerPoint, 5 steps to a 5, chapter #6; text, chapter #17

checkbox Lesson: 40    (Date Completed: _______________________)
Topic: Factor Costs and the Long-Run Supply Curves for a Competitive Market: constant-cost, increasing-cost, and decreasing-cost industries
Reference: text, chapter #11, pages 286-289

Lesson: 42    (Date Completed: _______________________)
Topic: Income Distribution and Poverty: measuring income disparity: quintiles, the Lorenz curve, Gini coefficient; sources of income inequality: human capital, discrimination; social programs: Old Age Security, Guaranteed Income Supplement, Spouse's Allowance, Canada Pension Plan, Employment Insurance, and Worker's Compensation
Reference: text, chapter #18

Lesson: 43    (Date Completed: _______________________)
Topic: Income Distribution through Income Tax: taxation rates: marginal vs. average; tax structures: progressive, regressive, proportional
Reference: text, chapter #18, pages 431-433

box Lesson: 47    (Date Completed: _______________________)
Topic: Public versus Private Goods: inferior vs. normal vs. superior; ordinary; Giffen vs. Veblen; rival vs. non-rival; excludable vs. non-excludable; public versus private; club vs. common pool, the "tragedy of the commons"
Reference: text, chapter #16; handout: Types of Goods

Lesson: 49    (Date Completed: _______________________)
Activity 1: Unit Review: Factor Markets, Market Failure, and the Role of Government

Reference: text, chapter #15, 16, 17, and 18; 5 Steps to a 5, chapters 11 & 12; review sheet

Lesson: 50    (Date Completed: _______________________)
Activity: Test: Factor Markets, Market Failure, and the Role of Government
Reference: text, chapters #15, 16, 17, and 18; 5 Steps to a 5, chapters 11 & 12; review sheet


Unit #4: Macroeconomic Measures of Performance

Lesson: 51    (Date Completed: _______________________)
Topic: Introduction to Macroeconomics: differentiating macroeconomic study from microeconomic study; differentiating between the "classical economic" perspective and the Keynesian economic perspective
References: text, chapter #19

Lesson: 52    (Date Completed: _______________________)
Topic: GDP and our Standard of Living: measuring economic performance; GNP vs. GDP; circular flow of income model; expenditure approach vs. income approach; real, nominal, and potential GDP; GDP deflator
References: text, chapter #20

Lesson: 53    (Date Completed: _______________________)
Topic: Unemployment and Inflation: the labour force survey, types of unemployment, unemployment rate, full employment (natural rate of unemployment), Okun's law, Phillips Curve, CPI, causes of inflation (cost-push vs. demand-pull), hyperinflation
References: text, chapters #21 (unemployment) and 27 (inflation)

Lesson: 54    (Date Completed: _______________________)
Topic: Deriving Short-Run Aggregate Demand and Aggregate Supply: deriving the shape of short-run aggregate demand and supply curves; contrasting the Phillips Curve with the AS curve
References: text, chapter 22; 5 Steps to a 5, chapter 10

Lesson: 55    (Date Completed: _______________________)
Topic: Contrasting Short-Run and Long-Run Aggregate Supply: long-run equilibrium, inflationary gaps; recessionary gaps; long-run equilibrium; long-run Phillips curve
References: text, chapter 22; 5 Steps to a 5, chapter 10

Lesson: 56    (Date Completed: _______________________)
Topic: Shifting Aggregate Demand and Aggregate Supply: AD & AS shifters; demand-side policies, supply-side policies
References: text, chapter 22; 5 Steps to a 5, chapter 10


Lesson: 59 (Date Completed: _______________________)
Topic: Equilibrium in the Product Market (Simplified Model): aggregate expenditure, aggregate output, propensity to save / consume, consumption function, aggregate approach to determining break-even and equilibrium level of income
Reference: text, chapter #23

Lesson: 60 (Date Completed: _______________________)
Topic: Equilibrium in the Product Market (Expanded Model): leakages and injections approach determining break-even and equilibrium level of income, the saving-income relation, comparing aggregate expenditure / output with the leakages and injections approach
Reference: text, chapter #23

Lesson: 61 (Date Completed: _______________________)
Topic: The Multiplier Effect: spending multiplier, calculating the multiplier effect, graphing the multiplier's effect on aggregate output, paradox of thrift.
Reference: text, chapter #23

Lesson: 62 (Date Completed: _______________________)
Topic: Fiscal Policy: balanced budget multiplier; budget deficits and surpluses; discretionary policy, automatic stabilizers, limitations to fiscal policy (i.e. inflationary impact, crowding out, potential conflict with monetary policy)
Reference: text, chapter #24

Lesson: 63 (Date Completed: _______________________)
Topic: Business Fluctuations: Keynesian theory, monetarist theory, New Classical Theory, and New Keynesian Theory. 
Reference: text, chapters #22 and 29

Lesson: 64 (Date Completed: _______________________)
Topic: Unit Review: Macroeconomic Equilibrium and Fiscal Policy
Reference: text, chapters #22, 23, 24 and 29; 5 Steps to a 5: chapters #9 and 11

Lesson: 65 (Date Completed: _______________________)
Topic: Unit Test: Macroeconomic Equilibrium and Fiscal Policy
Reference: online review sheet; text, chapters #22, 23, 24, and 29; 5 Steps to a 5: chapters #9 and 11

 

Unit #5: Money, Banking, and Monetary Policy


Lesson: 66    (Date Completed: _______________________)
Topic: The Form and Function of Money: functions of money, history of currency, currency, fiat money, legal tender, good money, bad money, "Gresham's Law," near money, money substitutes
Reference: text, chapter #25

Lesson: 67    (Date Completed: _______________________)
Topic: The Banking System and the Money Supply: money supply, branch banking, reserve ratio, nominal income, the bank multiplier (how banks "create" money)
Reference: text, chapter #25

Lesson: 70    (Date Completed: _______________________)
Topic: Monetary Theory: the classical "loanable funds" theory versus the Keynesian "liquidity preference" theory.
Reference: text, chapters #25 and 28

Check box Lesson: 71    (Date Completed: _______________________)
Topic: Monetary Policy: monetary instruments (aka tools of monetary policy) interest rate determination; Canadian tools of monetary policy: bank rate, open market operations, moral suasion (extension: bonds and interest rates; Canada's use of the reserve ratio)
Reference: text, chapters #25 and 28

Check box Lesson: 72    (Date Completed: _______________________)
Topic: Monetarism: growing the money supply can either: i) grow GDP, ii) grow inflation, or iii) a little of both. How do we control these outcmes? (extension: crude quantity theory of money)
Reference: text, chapters #25 and 28

Lesson: 75 (Date Completed: _______________________)
Topic: International Trade: absolute advantage, comparative advantage, mutually advantageous terms of trade
References: text, chapter #32

Lesson: 76 (Date Completed: _______________________)
Topic: International Balance of Payments: current account, capital account; stocks, investment, dividends and the exchange rate
References: text, chapter #32

Lesson: 77 (Date Completed: _______________________)
Topic: The Exchange Rate: exchange rates; fixed, floating rate, and managed flexible rate; policy implications
References: text, chapter #26

Lesson: 78    (Date Completed: _______________________)
Topic: Canada's Trade Relationships: partners, commodities; the effects of tariffs; the effects of quotas; the case for and against protectionism
References: text, chapter 32

Lesson: 80 (Date Completed: _______________________)
Topic: Unit Review
Reference: online review sheet, chapters #26 and 32; 5 Steps to a 5, chapter #13

Lesson: 81 (Date Completed: _______________________)
Topic: Unit Test
Reference: online review sheet, chapters #26 and 32; 5 Steps to a 5, chapter #13

 

Final 30%

Self-Directed Civic Engagement Project (5 to 15%)
Date: Throughout the year in class.

Exam Review (15 to 25%)
Date: Throughout the year in class.



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