Scarcity and Resource Allocation

1. Identify the productive resources needed to produce a good or service and suggest opportunity costs for the resources involved.

2. Explain how the availability of productive resources in Ohio promotes specialization in the production of goods and services and leads to trade.

Production, Distribution andConsumption

3. Explain how entrepreneurs organize productive resources to produce goods and services and that they seek to make profits by taking risks.

Markets

4. Explain ways in which individuals and households obtain and use income.

5. Explain why people in Ohio specialize in what they produce and then trade with others, which then increases the amount of goods and services available.

6. Explain why many jobs in Ohio depend on markets in other countries and why Ohio is a market for goods and services from other countries.

Scarcity and Resource Allocation

1. Compare different allocation methods for scarce goods and services such as prices, command, first-come-first-served, sharing equally, rationing and lottery.

2. Explain that individuals in all economies must answer the fundamental economic questions of what to produce, how to produce, and for whom to produce.

Production, Distribution and Consumption

3. Explain how education, specialization, capital goods and the division of labor affect productive capacity.

Markets

4. Explain how regions in North America become interdependent when they specialize in what they produce best and then trade with other regions inside and outside North America to increase the amount and variety of goods and services available.

5. Explain the general relationship between supply, demand and price in a competitive market.

6. Explain why competition among producers/sellers results in lower costs and prices, higher product quality, and better customer service.

7. Explain why competition among consumers/buyers results in higher product prices.

Scarcity and Resource Allocation

1. Explain how the availability of productive resources and entrepreneurship affects the production of goods and services in different world regions.

2. Explain that most decisions involve trade-offs and give examples.

Markets

3. Explain why trade occurs when individuals, regions and countries specialize in what they can produce at the lowest opportunity cost and how this causes both production and consumption to increase.

4. Identify goods and services that are imported and exported and explain how this trade makes countries interdependent.

5. Describe how supply and demand help to set the market clearing price for goods and services and how prices reflect the relative scarcity of goods and services.

Government and the Economy

6. Distinguish between goods and services typically produced by the private sector and the public sector.