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The following instructional plan is part of a GaDOE collection of Unit Frameworks, Performance Tasks, examples of
Student Work, and Teacher Commentary for the Economics course.
Economics UNIT 2 – “The Choice is Yours”
Elaborated Unit Focus
In this unit, students will build a basic foundation in economics. Through participation in
a mock self-help seminar (designed slightly with “tongue-in-cheek”), students will have
opportunities to connect basic economic fundamentals to past, present, and future life
choices. Looking through lens of incentives, students will identify the benefits they
enjoyed and the costs they incurred from past decisions. The theme of scarcity will help
students to understand the limited nature of their own productive resources. Finally,
looking at interdependence, students will analyze how their own choices reflect
allocation of scarce resources.
Standards/Elements
SSEF1 The student will explain why limited productive resources and unlimited
wants result in scarcity, opportunity costs, and tradeoffs for individuals, businesses,
and governments.
a. Define scarcity as a basic condition that exists when unlimited wants exceed
limited productive resources.
b. Define and give examples of productive resources (e.g., land (natural), labor
(human), capital (capital goods), entrepreneurship).
c. List a variety of strategies for allocating scarce resources.
d. Define opportunity cost as the next best alternative given up when individuals,
businesses, and governments confront scarcity by making choices.
SSEF2 The student will give examples of how rational decision-making entails
comparing the marginal benefits and the marginal costs of an action.
a. Illustrate, by means of a production possibilities curve, the tradeoffs between two
options.
b. Explain that rational decisions occur when the marginal benefits of an action
equal or exceed the marginal costs.
SSEF6 The student will explain how productivity, economic growth, and future
standards of living are influenced by investment in factories, machinery, new
technology, and the health, education, and training of people.
a. Define productivity as the relationship of inputs to outputs.
b. Give illustrations of investment in equipment and technology and explain their
relationship to economic growth.
c. Give examples of how investment in education can lead to a higher standard of
living.
Georgia Department of Education
Kathy Cox, State Superintendent of Schools
ECONOMICS FRAMEWORK UNIT 2
APPROVED 7/13/2007  Page 1 of 16
Copyright 2007 © All Rights Reserved
One Stop Shop For Educators
The following instructional plan is part of a GaDOE collection of Unit Frameworks, Performance Tasks, examples of
Student Work, and Teacher Commentary for the Economics course.
SSEPF1 The student will apply rational decision making to personal spending and
saving choices.
a. Explain that people respond to positive and negative incentives in predictable
ways.
b. Use a rational decision making model to select one option over another.
c. Create a savings or financial investment plan for a future goal.
Enduring Understandings/Essential Questions
The student will understand that scarcity of all resources forces parties to make
choices and that these choices always incur a cost.
Why do people have to make decisions?
How do you determine the use of productive resources you own?
What did our school give up when it chose to _____(fill in a local school decision
students find interesting)____________________?
How does making a budget demonstrate the concept of scarcity?
The student will understand that parties respond predictably to positive and
negative incentives.
Why should people weigh the advantages and disadvantages of different
alternatives when making choices?
What does it mean to be “rational”?
How do we determine that decision we make is “rational”?
What methods can we use to help us make our choices more rationally?
How does self-interest influence human decision-making?
The student will understand that, because of interdependency, a decision made by
one party has intended and unintended consequences on other parties.
How does investment in human and physical capital affect productivity and
economic growth?
In what ways have you increased your productivity during your high school
career?
How do we measure growth and productivity?
Georgia Department of Education
Kathy Cox, State Superintendent of Schools
ECONOMICS FRAMEWORK UNIT 2
APPROVED 7/13/2007  Page 2 of 16
Copyright 2007 © All Rights Reserved
One Stop Shop For Educators
The following instructional plan is part of a GaDOE collection of Unit Frameworks, Performance Tasks, examples of
Student Work, and Teacher Commentary for the Economics course.
*NOTE: The balanced assessment plan included in this unit is presented as a series of
suggested activities. It is not expected that the teacher complete all assessments for a
successful unit.
Balanced Assessment Plan
Description of Assessment
Standard/Element
Scarcity Sculptures: (see attached example on page?) Students
create two Play-Doh (or paper) sculptures of tangible goods
essential to their current lives. One item should intentionally
contain resources that are more relatively scarce than the other.
After creating the sculptures, students will conduct a gallery walk
through the classroom listing the two items each student created.
Students will need to identify one land, one labor, and one capital
resource needed to make each good, and analyze which good is
more relatively scarce resources.
Life Map: Students will create a life map illustrating the positive
and negative incentives that led them to make important choices
during their high school years. The map must include at least
three academic choices, three work/community/extracurricular
choices, three savings/investing choices, and three family-related
choices. The maps will show with words and pictures how
incentive led to each choice. Students will share their life maps
with the class or in small groups and reflect orally on the impact
of these choices on their lives.
SSEF1b
SSEF1a&c;
SSEF2b;
SSEPF1a
My Time PPC: Student will identify a finite number of hours
SSEF2a
available for after-school, identify two activities in which they
SHOULD engage during their after-school hours. Using the hours
available as the basis for their production possibilities curve, they
determine the possible trade-offs between two activities and
illustrate these on the curve. Students will identify situations that
could cause them to produce at a point inside their Production
Possibilities Curve (PPC), discuss the dangers of temporarily
trying to reach a point outside the curve, and identify strategies
that would allow them to shift their PPC outward.
Georgia Department of Education
Kathy Cox, State Superintendent of Schools
ECONOMICS FRAMEWORK UNIT 2
APPROVED 7/13/2007  Page 3 of 16
Copyright 2007 © All Rights Reserved
Type of
Assessment
Informal
Observation;
Discussion;
Constructed
Response.
Small Group
Discussion;
Constructed
Response
Dialogue and
Discussion
Constructed
Response
One Stop Shop For Educators
The following instructional plan is part of a GaDOE collection of Unit Frameworks, Performance Tasks, examples of
Student Work, and Teacher Commentary for the Economics course.
PPC & Economic Growth: Using the students’ “my time” PPC
curves as the basis of discussion, ask the students how nations
could use the idea of production possibilities to help make
decisions. Introduce the classic guns and butter model by
showing the two goods on a PPC and discussing tradeoffs that
would need to be made in order to make more guns or more
butter. Ask the students to brainstorm a list of goods and services
that fall into these two categories and have them share their lists.
Next, ask the students to identify ways a nation could produce
additional amounts of these goods and services. This will usually
result in examples of how nations can invest in developing new
productive resources or new technology. Show the students how
these new resources cause the PPC to shift outward. Reinforce
the connection between their own investments in human and
physical capital and those investments made by nations. Discuss
what incentives drive nations to make these investments in
economic growth.
Future Choices Four Corners: (see attached on page ?)
Students participate in a kinesthetic “four corners” activity in
which they make future life choices. The instructor calls out four
options and students indicate their choice by selecting the
appropriate corner in the room. After making all 12 choices,
students determine their opportunity cost from the remaining
alternatives. For each choice, the students identify two benefits
and two costs for each choice. (see attached)
SSEF6b
Informal
Observation
Dialogue, and
Discussion
SSEF1d
SSEPF1b
Informal
Observation
and Dialogue;
Selected
response;
Constructed
Response;
Financial Planning: Students will use current income and
expenditures to create a budget and make changes to reflect longterm savings goals.
 Ask the class, “What is a budget” or “Who uses a
budget?” If anyone does, have them briefly tell why they
use one.
 Ask the class to discuss any additional reasons one might
use a budget. (The teacher can give personal examples if
his/her family uses a budget.)
 Using a blank budget template (create one, use the online
resource listed below, or use one found in NCEE
materials).
 Ask students to identify their current weekly (or monthly)
income.
 Tell the students to fill in the various areas listed on the
budget form.
 After they have finished, ask if anyone contributed to
SSEPF1c
Informal
Observation,
Constructed
Response,
Dialogue, and
Discussion
Georgia Department of Education
Kathy Cox, State Superintendent of Schools
ECONOMICS FRAMEWORK UNIT 2
APPROVED 7/13/2007  Page 4 of 16
Copyright 2007 © All Rights Reserved
One Stop Shop For Educators
The following instructional plan is part of a GaDOE collection of Unit Frameworks, Performance Tasks, examples of
Student Work, and Teacher Commentary for the Economics course.
savings. If so, ask the student to explain why they save
chose to save some of their income.
 Ask other students why they chose not to save.
 Tell the students you want them to set a savings goal for a
major purchase they want to buy in the future.
 Ask them to trim their budget to account for savings.
 Ask several students to put the amount saved each week
(or month) on the board and list how many weeks it will
take them to save the amount needed.
 Ask some of the students to explain how they decided the
amount of money to save each week and from which
budget categories they trimmed the money. (Check out
the online budget activity listed under resources as an
alternative.)
Personal Strategic Plan: Using the choices and opportunity
SSEF6 (a & c);
costs from the future choices activity, students will create a vision SSEPF1c
of their future professional and personal self. This can take the
form of a written description or a visual image. The teacher will
then facilitate a strategic planning session. The session will focus
on developing a personal mission statement, creating long-term &
short-term goals in the area of education, career, personal finance,
and family/personal relationships. Students will be able to use
their plans to guide future choices about investment in human
capital, financial assets, personal productivity, and resource
allocation.
Informal
Observation
Dialogue and
Discussion
Constructed
Response.
Sample Performance Task (attach rubric)
You are attending the new “See yourself …, Be yourself…” seminar series. In this seminar, you will
understand that scarcity of all resources forces you to make choices about your life. Each time you
allocate your resources, you will enjoy benefits, but will also incur costs. The level of success you
achieve in life will often depend on how well you balance the benefits and costs of your choices.
During the seminar, your facilitator (teacher) will help you create a life map of your academic,
employment, and personal decisions illustrating the costs and benefits of each. You will analyze these
decisions to understand who you are today. You will then select future lifestyle preferences, creating a
portrait of who you want to become and analyze how you have responded predictably to positive and
negative incentives when you selected these preferences. Based on your future choices, your facilitator
(teacher) will help you create a cost/benefit matrix to help you understand what must be given up to
achieve your goals. As part of the seminar, you will create production possibility curves illustrating the
possible trades-offs you must make between different productive activities. Finally, the facilitator will
help you use marginal analysis to create a personal strategic plan designed to increase your human
capital, maximize your productive efficiency, and effectively allocate your scarce resources.
Map and Globe Skills:
Information Processing Skills:
1, 3, 5, 9, 11 and 12
Georgia Department of Education
Kathy Cox, State Superintendent of Schools
ECONOMICS FRAMEWORK UNIT 2
APPROVED 7/13/2007  Page 5 of 16
Copyright 2007 © All Rights Reserved
One Stop Shop For Educators
The following instructional plan is part of a GaDOE collection of Unit Frameworks, Performance Tasks, examples of
Student Work, and Teacher Commentary for the Economics course.
*Note concerning rubrics: Each performance task is accompanied by two rubrics: a
content rubric and a product rubric. The content rubric (with bolded borders) is designed
to measure how well a student can use the standards to demonstrate the enduring
understanding(s). The second rubric focuses on the product of the performance task.
This is where students are scored on items involving grammar, punctuation, spelling,
creativity, presentation, etc. It is intended that the CONTENT rubric is weighed more
heavily when assigning a grade to the students.
Content Rubric for Unit 2 Task:
Scale
Criteria
1
(Below Standard)
2
(Needs Improvement)
3
(Meets Standard)
4
(Exceeds Standard)
Correctly identifies at least
one cost and one benefit
resulting from each of the
following areas of personal
decision-making in high
school: academics,
employment/community
service, and family/personal
relationships.
In addition to everything in
3 (meets standard)
additional costs and benefits
of decision-making.
Correctly explains future
choices to determine one
positive OR one negative
incentives influencing at least 5
future lifestyle preferences.
Correctly explains at least
five future choices to
determine one positive
AND one negative incentive
guiding each preference.
In addition to everything in
3 (meets standard) positive
and negative incentives for
additional lifestyle
preferences.
The PPC contains one or two
minor errors OR the student is
unable to explain a position on
the graph.
Correctly constructs and
labels a PPC for two
personal productive
activities AND correctly
describes how various
positions on the graph
(inside, outside, on the
curve, etc.) reflect different
production priorities.
In addition to everything in
3 (meets standard) rationally
explain why a particular
position on the PPC will be
most effective in helping the
student reach fulfill his/her
strategic plan.
Unable to identify any Correctly identifies at least one
Identifies and
cost and benefit or
cost and one benefit resulting
describes the
identifies
a
cost
and
a
from two of the following areas
costs and
benefit
for
only
one
of
of personal decision-making in
benefits of
the following areas of high school: academics,
personal
personal decisionemployment/community
decision-making. making in high school: service, and family/personal
academics,
employment/communi
ty service, and
family/personal
relationships.
Analyzes future Unable to explain
future choices to
choices
determine the positive
OR negative
incentives guiding
each preference OR
analyzes less than 5
choices.
Creates and uses Unable to graph the
PPC or explain the
personal
meaning of various
production
positions on the graph.
possibilities
curves.
relationships.
Georgia Department of Education
Kathy Cox, State Superintendent of Schools
ECONOMICS FRAMEWORK UNIT 2
APPROVED 7/13/2007  Page 6 of 16
Copyright 2007 © All Rights Reserved
One Stop Shop For Educators
The following instructional plan is part of a GaDOE collection of Unit Frameworks, Performance Tasks, examples of
Student Work, and Teacher Commentary for the Economics course.
Uses marginal
analysis to make
decisions about
human capital
investment,
productivity, and
resource
allocation.
Unable to explain
marginal analysis or
connect it to decisionmaking.
Correctly explains how
marginal analysis can be used
to determine whether or not a
productive activity is worth an
additional hour of allotted time
(or other productive resource)
BUT does not show how this
technique can be used to make
educational, career, and family
decisions.
Correctly explains how
In addition to everything in
marginal analysis can be
3 (meets standard) applies
used to determine whether the tool of marginal analysis
or not a productive activity correctly to his/her own
is worth an additional hour choices outlined in the
of allotted time (or other
personal strategic plan.
productive resource) AND
how this technique can be
used to make educational,
career, and family decisions.
Product Rubric
Scale
1
(Below Expectations)
2
(Needs Improvement)
3
(Meets Expectations)
4
(Exceeds Expectations)
Life
Map
Design
Life map is sloppy,
has less than 6
choices illustrated,
and/or has no
categories evident.
Future
Self-Portrait
Self-portrait lacks a
caricature of the
student, at least 8
images illustrating
the future choices
selected by the
student in the four
corners activity,
AND/OR is
illustrated illegibly.
Strategic plan is
missing more than
1 component of
level three
AND/OR is
illegible.
Life map includes
less than 6-8 choices,
is all one color, lacks
neatness, and/or is
missing decisionmaking categories.
Self-portrait contains
a caricature of the
student, 8-11 images
illustrating the future
choices selected by
the student in the four
corners activity,
AND is neatly draw
with multiple colors.
Life map is legible, uses
color images for all 9
choices illustrated, AND
reflects all three
categories of decisionmaking.
Self-portrait contains a
caricature of the student,
12 images illustrating the
future choices selected by
the student in the four
corners activity, AND is
neatly draw with multiple
colors.
Everything in 3 PLUS
images for the incentives,
exceptional quality,
AND/OR more detailed
decision-making
illustrated.
Everything in 3 PLUS an
opportunity cost
caricature showing what
was given up when each
choice was made.
Strategic plan is
missing one of the
components of level
three or is not typed.
Strategic plan contains a
mission statement, 3
long-term goals for each
area of life (academic/
employment, community/
religious, and family/
relationships), three
action steps for each goal,
a production possibilities
curve for each area, AND
is neatly typed.
Everything in 3 PLUS
additional goals, action
steps, AND/OR PPCs.
Criteria
Personal
Strategic
Plan
Georgia Department of Education
Kathy Cox, State Superintendent of Schools
ECONOMICS FRAMEWORK UNIT 2
APPROVED 7/13/2007  Page 7 of 16
Copyright 2007 © All Rights Reserved
One Stop Shop For Educators
The following instructional plan is part of a GaDOE collection of Unit Frameworks, Performance Tasks, examples of
Student Work, and Teacher Commentary for the Economics course.
Resources for Unit 2
Download Handouts for Scarcity Sculptures and Future Choices Four Corners Activity
http://www.wmich.edu/nonprofit/Guide/guide7.htm
-Although this guide is targeted to non-profit organization strategic planning, many of the
ideas and activities can be adapted to help students create their personal strategic plans.
http://extensioneducation.tamu.edu/SEAL/Vision-LP.pdf
-A lesson plan for personal strategic planning. This document links the personal strategic
planning to Dr. King’s I Have A Dream speech. It contains activities for the students to
use in developing their vision and goals.
http://www.readwritethink.org/lessons/lesson_view.asp?id=74
-An online lesson plan describing the process for creating a visual life map with students.
It will need to be adapted slightly to focus specifically on costs and benefits of high
school academic, employment, and family decisions.
http://www.ncee.net/ei/lessons/OldMac/lesson5/
-This online NCEE lesson helps the teacher explain the process of creating production
possibilities curves. It can provide a good background for them prior to creating their
own PPC curves.
http://www.econedlink.org/lessons/index.cfm?lesson=EM660&page=teacher
-Online lesson introducing the concept of cost/benefit analysis to students. Lesson uses
high school choices like employment and college to explain the topic.
http://www.econedlink.org/lessons/index.cfm?lesson=EM532&page=teacher
-Online lesson introducing scarcity and allocation of resources to students. It contains
several interactive activities.
Georgia Department of Education
Kathy Cox, State Superintendent of Schools
ECONOMICS FRAMEWORK UNIT 2
APPROVED 7/13/2007  Page 8 of 16
Copyright 2007 © All Rights Reserved
One Stop Shop For Educators
The following instructional plan is part of a GaDOE collection of Unit Frameworks, Performance Tasks, examples of
Student Work, and Teacher Commentary for the Economics course.
Scarcity Sculptures
Unit Two: Fundamental Concepts
Sculptor
Ex:
Sherilyn
Good #1
Sneakers
Productive
Resources
Good #2
Productive
Resources
Land:
Cotton/leather
Labor:
assembly line
workers
Capital:
Sewing
machines
Cheeseburger
Land: beef
Labor: meat
packers
Capital:
meat grinder
Georgia Department of Education
Kathy Cox, State Superintendent of Schools
ECONOMICS FRAMEWORK UNIT 2
APPROVED 7/13/2007  Page 9 of 16
Copyright 2007 © All Rights Reserved
Most
Relatively
Scarce
Sneakers
seem more
relatively
scarce
because
each unit
takes more
labor time
and
materials to
complete
One Stop Shop For Educators
The following instructional plan is part of a GaDOE collection of Unit Frameworks, Performance Tasks, examples of
Student Work, and Teacher Commentary for the Economics course.
FOUR CORNERS ACTIVITY
Choice One: Vehicles
Choice Seven: Saving
C1 – SUV
C1: Put savings under the mattress
C2 – Motocycle
C2: Use a bank savings account, CDs, or government
C3 – Car
bonds
C4 – Alternative transportation: public transit, bicycle,
C3: Stocks, commodities, and/or mutual funds
scooter, hybrid vehicle, etc.
C4: Real Estate, venture capital, collectables, etc.
Choice Two: Housing
C1 – Apartment
C2 – Single Family House
C3 – Condo
C4 – Non-traditional: houseboat, trailer, Motorhome
Choice Three: Environment
C1: Urban – Big City
C2: Suburbs/Small city
C3: Small Town
C4: Rural/Country
Choice Four: Future Education
C1: On the job training for a high-paying trade like
plumbing, automotive, computers, etc.
C2: Find a company that will pay for me to go to
college; work and college together
C3: Definitely a four year college right away
C4: Forget school, I’m starting my own business
Choice Five: Pets
C1: Dog
C2: Cat
C3: No pet no way
C4: Nontraditional: Iguana, snake, tiger, fish, etc.
Choice Six: Future Family
C1: Get married/partnered, have children right away
C2: Get married/partnered, have children 5-10 yrs later
C3: Get married/partnered, have no children
C4: Stay single
Choice Eight: Caring for aging parents
C1: Put mom/dad in a nursing home
C2: Pay for a live-in health care worker to look after
them at their house
C3: Parents stay at your house, send them to elder day
care during the day
C4: Forget it, they’ll have to take care of themselves!
Choice Nine: Job Stress
C1: Position with moderate responsibility, but making
mistakes doesn’t really hurt anyone
C2: High level of responsibility, you are indispensable
and mistakes could be life-threatening,
C3: Self-employed; if you don’t work, you only hurt
yourself
C4: Low-level responsibility; when you are on vacation
no one really notices you are gone
Choice Ten: Voting
C1: Carefully review candidate platforms; cast ballot for
every election including primaries and run-offs
C2: Pay attention to the big races only like President,
Senators and Governors
C3: Only vote in the presidential elections
C4: Not going to vote, what’s the point!
Choice Eleven: Toys
C1: Latest Electronics & Gear
C2: Camping, Hunting, Boating/Fishing & Outdoor
Gear
C3: Extreme sports: racing, mountaineering,
skateboarding, bungee jumping, skydiving, etc.
C4: Home-based hobbies, cooking, gardening, sewing,
model airplanes, etc.
Choice Twelve: Traveling
C1: Domestic Car Trips
C2: Upscale international destinations
C3: Adventure travel
C4: Ecotourism/Community Service Projects
Georgia Department of Education
Kathy Cox, State Superintendent of Schools
ECONOMICS FRAMEWORK UNIT 2
APPROVED 7/13/2007  Page 10 of 16
Copyright 2007 © All Rights Reserved
One Stop Shop For Educators
The following instructional plan is part of a GaDOE collection of Unit Frameworks, Performance Tasks, examples of
Student Work, and Teacher Commentary for the Economics course.
CHOICE ACTIVITY
Choices
Your Choices
Person you
watched
C1
C2 C3 C4 C1
C2
C3
C4
Choice One: Vehicles
Benefit:
Benefit:
Cost:
Cost:
Choice Two: Housing
Benefit:
Benefit:
Cost:
Cost:
Choice Three: Environment
Benefit:
Benefit:
Cost:
Cost:
Choice Four: Future Education
Benefit:
Benefit:
Cost:
Cost:
Choice Five: Pets
Benefit:
Benefit:
Cost:
Cost:
Choice Six: Future Family
Benefit:
Benefit:
Cost:
Cost:
Choice Seven: Saving
Benefit:
Benefit:
Cost:
Cost:
Choice Eight: Caring for aging parents
Benefit:
Benefit:
Cost:
Cost:
Choice Nine: Job Stress
Benefit:
Benefit:
Cost:
Cost:
Choice Ten: Voting
Benefit:
Benefit:
Cost:
Cost:
Choice Eleven: Toys
Georgia Department of Education
Kathy Cox, State Superintendent of Schools
ECONOMICS FRAMEWORK UNIT 2
APPROVED 7/13/2007  Page 11 of 16
Copyright 2007 © All Rights Reserved
One Stop Shop For Educators
The following instructional plan is part of a GaDOE collection of Unit Frameworks, Performance Tasks, examples of
Student Work, and Teacher Commentary for the Economics course.
Benefit:
Benefit:
Cost:
Cost:
Choice Twelve: Traveling
Benefit:
Benefit:
Cost:
Cost:
Georgia Department of Education
Kathy Cox, State Superintendent of Schools
ECONOMICS FRAMEWORK UNIT 2
APPROVED 7/13/2007  Page 12 of 16
Copyright 2007 © All Rights Reserved
One Stop Shop For Educators
The following instructional plan is part of a GaDOE collection of Unit Frameworks, Performance Tasks, examples of
Student Work, and Teacher Commentary for the Economics course.
SAMPLE QUIZ FOR UNIT 2
6)
Which of the following statements is FALSE?
A) As society increases its wealth, the problem of
scarcity disappears.
B) The productive resources are used to produce
outputs to help society satisfy its wants.
C) Even though a society faces the problem of
scarcity, it does not necessarily suffer from
poverty.
D) Land and labor are both factors of production.
7)
The productive resource that brings together other
resources to organize a business is:
A) physical capital.
B) venture capital.
C) entrepreneurship.
D) productive capital.
In economics, things that are used to
produce goods and services are known as
A) wants.
B) aggregates.
C) factors of need.
D) productive resources.
8)
One type of factor of production is capital. All of
the following are examples of capital EXCEPT
A) buildings.
B) machinery.
C) electrical engineers.
4)
When an economist refers to rational
self-interest, he or she means
A) looking out for what’s best for you the
individual.
B) the focus on your contributions to
society.
C) behavior that makes society better off.
D) behavior that helps your boss make
more money.
9)
5)
The potential rewards, such as profit,
that are available to an individual if a
particular activity is undertaken are
known as
A) premiums.
B) gifts.
C) incentives.
D) intrinsic values.
1)
Economics is best defined as the
A) study of how people make choices to
satisfy their wants.
B) study of individual self-interests.
C) study of how government can most
efficiently raise funds by taxation.
D) process by which goods are sold in free
markets.
2)
In economic analysis, people’s resources
are
A) limited and their wants are unlimited.
B) unlimited and their wants are also
unlimited.
C) limited and their wants are also limited.
D) unlimited and their wants are limited.
3)
D) a hydroelectric power plant
10)
The opportunity cost of going to college might best
be described as
A) the money that must be paid in order to attend
college.
B) the lowest-valued alternative use of the
student’s time.
C) the highest-valued alternative use of the
student’s time.
D) the value that the student attaches to not
working.
Fred and Ann both decide to see the same movie
when they are given free movie tickets. We know
that
A) both bear an opportunity cost since they could
have done other things instead of see the movie.
B) both bear the same opportunity cost since they
are doing the same thing.
C) the cost of going to the movie is greater for the
one who had more choices to do other things.
D) neither bear an opportunity cost because the
tickets were free.
Georgia Department of Education
Kathy Cox, State Superintendent of Schools
ECONOMICS FRAMEWORK UNIT 2
APPROVED 7/13/2007  Page 13 of 16
Copyright 2007 © All Rights Reserved
One Stop Shop For Educators
The following instructional plan is part of a GaDOE collection of Unit Frameworks, Performance Tasks, examples of
Student Work, and Teacher Commentary for the Economics course.
11)
of
In the figure above, the opportunity cost
producing 400 yards of instead of 200
yards
of cloth is
A) 750 bushels of corn
B) 250 bushels of corn
C) 975 bushels of corn
D) 75 bushels of corn
12) An increase in the amount of resources
available to an economy can be pictured
in a production possibilities curve
diagram by
A) shifting the production possibilities
curve in.
B) shifting the production possibilities
curve out.
C) making the production possibilities
curve straighter.
D) moving from a point inside the
production possibilities curve to a point on
the curve.
13) The production possibilities curve
represents:
A) the total amount of stocks and bonds
that exist in the economy.
B) the trade-off between human capital
and physical capital that exists.
C) all possible combinations of total
goods/services that can be produced.
D) society’s needs.
14) Which of the following is NOT scarce?
16)
In the above figure, the combination of
computers and televisions shown by point x
A) is not attainable at the point in time for
which the graph is drawn.
B) can be attained only if some of society’s
resources are unemployed.
C) suggests that the law of increasing
relative costs does not hold.
D) results only because society allocates its
resources inefficiently.
17)
The combination of personal computers
and televisions shown by point w in the
above figure
A) is an efficient use of society’s resources
because it is below the production
possibilities curve.
B) is more desirable than point x because
producing at point w does not put a strain
on society’s resources.
C) is attainable but involves the inefficient
use of some of society’s resources.
D) is beyond the capacity of society to
produce.
18) The night before an economics exam a student
has set aside 4 hours to study for the exam
estimating that for each hour of studying her
grade would go up 5 points. That night she gets a
call from her employer to come to work for a
wage of $15/hr for that night. She decides to work
for 3 hours and earn an extra $45.00. The next
day she takes the test and gets a grade of 75. The
opportunity cost for her work is
Georgia Department of Education
Kathy Cox, State Superintendent of Schools
ECONOMICS FRAMEWORK UNIT 2
APPROVED 7/13/2007  Page 14 of 16
Copyright 2007 © All Rights Reserved
One Stop Shop For Educators
The following instructional plan is part of a GaDOE collection of Unit Frameworks, Performance Tasks, examples of
Student Work, and Teacher Commentary for the Economics course.
A)
B)
C)
D)
College education
Medicine
Housing
Weeds
15) The opportunity cost of going to college full
time away from home instead of entering the
workforce is
A) The $45.00 she earned.
B) The 15 extra points she estimates that she
could have earned on the exam if she had
studied the extra three hours.
C) The three hours she did not study.
D) The entire four hours she set aside for
studying.
A) the income you could have earned from
a full time job.
B) the money you would have saved if you
had not paid the tuition.
C) the time you could have spent with
friends back home.
D) All of the above are correct.
Short Answer Questions:
Choose two out of the following three free response questions. You may complete the third for extra
credit.
Describe a major choice you made recently. Identify the opportunity cost of this decision. Give a
minimum of two benefits of the choice you made and two costs. Be sure your benefits and costs make
sense given your opportunity cost.
Think of two goods or services. For each good or service, list three productive
resources used to produce it. Label the three productive resources with the correct
resource category. You should not use the same resource category more than once
for each good or service.
During this unit, you created a budget and made a savings/investment plan for your future financial goals. Using
this knowledge, provide the following information:
List three sources of income an individual can earn.
Georgia Department of Education
Kathy Cox, State Superintendent of Schools
ECONOMICS FRAMEWORK UNIT 2
APPROVED 7/13/2007  Page 15 of 16
Copyright 2007 © All Rights Reserved
One Stop Shop For Educators
The following instructional plan is part of a GaDOE collection of Unit Frameworks, Performance Tasks, examples of
Student Work, and Teacher Commentary for the Economics course.
List three expenses paid by most households.
List and describe three ways you can save/invest your money.
*This unit was created by Mark DeCourcy and Sherilyn Narker with additional input
from Dr. Bill Cranshaw, Chris Cannon, and Marlo Mong. It was reviewed and approved
by the Social Studies Advisory Council 7/06/07.
Georgia Department of Education
Kathy Cox, State Superintendent of Schools
ECONOMICS FRAMEWORK UNIT 2
APPROVED 7/13/2007  Page 16 of 16
Copyright 2007 © All Rights Reserved