THE WIDOW JONES

This project is suitable for 12th grade students who are participating in an Economics Class.

 

Applicable California State Academic Standards:

12.1     Students understand common economic terms and concepts and economic
reasoning.
1. Examine the causal relationship between scarcity and the need for choices.
2. Explain opportunity cost and marginal benefit and marginal cost.
3. Identify the difference between monetary and nonmonetary incentives and how
changes in incentives cause changes in behavior.

 

12.2     Students analyze the elements of America’s market economy in a global
setting.
1. Understand the relationship of the concept of incentives to the law of supply and the
relationship of the concept of incentives and substitutes to the law of demand.
2. Discuss the effects of changes in supply and/or demand on the relative scarcity,
price, and quantity of particular products.
3. Explain the roles of property rights, competition, and profit in a market economy.
4. Explain how prices reflect the relative scarcity of goods and services and perform the
allocative function in a market economy.
 

12.3     Students analyze the influence of the federal government on the American
economy.

3. Describe the aims of government fiscal policies (taxation, borrowing, spending) and
their influence on production, employment, and price levels.
4. Understand the aims and tools of monetary policy and their influence on economic
activity (e.g., the Federal Reserve).

 

12.5     Students analyze the aggregate economic behavior of the U.S. economy.
3. Distinguish between short-term and long-term interest rates and explain their relative
significance.