Economics
Department(s):
Social Science
1 Semester – 5 Credits – 5 Class periods per week
Course Objectives:
Godly stewardship is essential for anyone living in the United States. Lessons learned in positive stewardship early in life will equip students to not only survive in today’s tough economic market, but also to succeed. God promises His children blessings if they properly use their finances. Not only will the students live fulfilling lives in the future, but they will also possess the skills necessary to make it through the difficult years of college. This course is intended to instruct the students in both the macroeconomics of a complex economic scene and the microeconomics of personal finance from the perspective of using finances God’s way.
Course Description:
Since a basic understanding of economics is important, students begin by defining economics. Then they will begin to discuss the basic elements of economics: goods and services; value, both intrinsic and subjective; the law of supply and demand. Once they have laid this foundation, students will delve into different economic models. Through these economic models, they will explore how the basic elements learned previously connect to those models. With the economic models in place, students will then examine the factors of production and factor costs discovering how those factors help business to be successful or not successful. Students will then look at flow models like the circular flow model to show how goods and services; spending and saving; and production all combine to create an economic structure. They will also analyze what occurs when there is a breakdown in any area of that model.
With these basics established, students began to look at the global nature of economics discussing the four economic goals of most nations. They will examine the impact of unemployment, inflation and deflation on the economy. Then they will explain the conditions necessary for competition. Students will also examine factors that halt positive competition: monopolies and oligopolies.
Once a firm foundation has been laid in macroeconomics, students will focus their studies of economics at the personal level, microeconomics. Since financial security is a chief concern any time, the study begins here. Students will discuss the value of saving money and creating an emergency fund. They will explain how interest works and impacts the rate of return on their investments. They will also examine the relationship between diversification and risk; and compare and contrast different types of investments. Planning for the future and retirement plans will also be discussed. Students will also investigate the topic of credit. They will examine debt, credit cards and why people use these for purchases. They will discuss the value of savings versus debt as good fiscal management. They will look at the factors that go into a purchase and discuss why people choose to purchase or not. Since budgeting is a vital part of any fiscal management plan, students will examine why budgets are important and how they can create a successful budget.
Textbooks:
Bob Jones Economics for Christian Schools
Bob Jones Economics for Christian Schools Student Activities
Council for Economic Education Advanced Placement Microeconomics 3rd Edition
Council for Economic Education Advanced Placement Macroeconomics 3rd Edition
Henry Hazlitt Economics in One Lesson
Other Materials:
Dave Ramsey Foundations in Personal Finance (video and workbook)
Truth Project by Focus on the Family
Prerequisites:
Senior class standing