Economics

Microeconomic Concepts 
SSEMI1 The student will describe how households, businesses, and governments are 
interdependent and interact through flows of goods, services, and money. 
a.
Illustrate by means of a circular flow diagram, the Product market; the Resource (factor) 
market; the real flow of goods and services between and among businesses, households, and 
government; and the flow of money. 
b.
Explain the role of money as a medium of exchange. 
SSEMI2 The student will explain how the Law of Demand, the Law of Supply, prices, and profits 
work to determine production and distribution in a market economy. 
a.
Define the Law of Supply and the Law of Demand. 
b.
Describe the role of buyers and sellers in determining market clearing price. 
c.
Illustrate on a graph how supply and demand determine equilibrium price and quantity. 
d.
Explain how prices serve as incentives in a market economy. 
SSEMI3 The student will explain how markets, prices, and competition influence economic 
behavior. 
a.
Identify and illustrate on a graph factors that cause changes in market supply and demand. 
b.
Explain and illustrate on a graph how price floors create surpluses and price ceilings create 
shortages. 
c.
Define price elasticity of demand and supply. 
SSEMI4 The student will explain the organization and role of business and analyze the four 
types of market structures in the U.S. economy. 
a.
Compare and contrast three forms of business organization—sole proprietorship, partnership, 
and corporation. 
b.
Explain the role of profit as an incentive for entrepreneurs. 
c.
Identify the basic characteristics of monopoly, oligopoly, monopolistic competition, and pure 
competition. 

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Economics Social Studies Georgia Performance Standards