Economic Standards
SS.E.1 2007 - Scarcity and
Economic ReasoningStudents
will understand that productive resources are limited; therefore, people,
institutions and governments cannot have all the goods and services they want.
As a result, people, institutions and governments must choose some things and
give up others.
SS.E.1.1
2007Define each of the
productive resources (natural, human, capital) and explain why they are
necessary for the production of goods and services.
SS.E.1.2
2007Explain how consumers
and producers confront the condition of scarcity by making choices which involve
opportunity costs and tradeoffs.
SS.E.1.3
2007Explain the important
role of the entrepreneur in taking the risk to combine productive resources to
produce goods and services.
SS.E.1.4
2007Describe how people
respond predictably to positive and negative incentives.
SS.E.1.5
2007Explain that voluntary
exchange occurs when all participating parties expect to gain.
SS.E.1.6
2007Compare and contrast
how the various economic systems (traditional, market, command, mixed) answer
the questions: What to produce? How to produce it? For whom to
produce?.
SS.E.1.7
2007Describe how clearly
defined and enforced property rights are essential to a market
economy.
SS.E.1.8
2007Use a production
possibilities curve to explain the concepts of choice, scarcity, opportunity
cost, tradeoffs, unemployment, productivity and growth.
SS.E.1.9
2007Diagram and explain a
Circular Flow Model of a market economy, showing households and businesses as
decision makers, resource and money flows, and the three basic markets -
product, productive resources and financial markets.
SS.E.2 2007 - Supply and
DemandStudents
will understand the role that supply and demand, prices, and profits play in
determining production and distribution in a market economy.
SS.E.2.1
2007Define supply and
demand.
SS.E.2.2
2007Identify factors that
cause changes in market supply and demand.
SS.E.2.3
2007Describe the role of
buyers and sellers in determining the equilibrium price.
SS.E.2.4
2007Describe how prices
send signals to buyers and sellers.
SS.E.2.5
2007Recognize that
consumers ultimately determine what is produced in a market economy (consumer
sovereignty).
SS.E.2.6
2007Demonstrate how supply
and demand determine equilibrium price and quantity in the product, resource and
financial markets.
SS.E.2.7
2007Demonstrate how changes
in supply and demand influence equilibrium price and quantity in the product,
resource, and financial markets.
SS.E.2.8
2007Describe how the
earnings of workers are determined by the market value of the product produced
and workers' productivity.
SS.E.2.9
2007Demonstrate how
government wage and price controls, such as rent controls and minimum wage laws,
create shortages and surpluses.
SS.E.2.10
2007Use concepts of price
elasticity of demand and supply to explain and predict changes in quantity as
price changes.
SS.E.2.11
2007Illustrate how
investment in factories; machinery; new technology; and the health, education
and training of people increases productivity and raises future standards of
living.
SS.E.3 2007 - Market
StructuresStudents will understand the
organization and role of business firms and analyze the various types of market
structures in the United States economy.
SS.E.3.1
2007Compare and contrast
the following forms of business organization: sole proprietorship, partnership
and corporation.
SS.E.3.2
2007Identify the three
basic ways that firms finance operations (retained earnings, stock issues and
borrowing) and explain the advantages and disadvantages of each.
SS.E.3.3
2007Recognize that economic
institutions, such as labor unions, nonprofit organizations and cooperatives,
evolve in market economies to help members and clients accomplish their
goals.
SS.E.3.4
2007Identify the basic
characteristics of the four market structures: monopoly, oligopoly, monopolistic
competition and pure competition.
SS.E.3.5
2007Explain how competition
among many sellers lowers costs and prices.
SS.E.3.6
2007Demonstrate how firms
determine price and output through marginal analysis.
SS.E.3.7
2007Explain ways that firms
engage in price and non-price competition.
SS.E.3.8
2007Identify laws and
regulations adopted in the United States to promote competition among
firms.
SS.E.3.9
2007Explain the function of
profit in a market economy as an incentive for entrepreneurs to accept the risks
of business failure.
SS.E.3.10
2007Describe the benefits
of natural monopolies (economies of scale) and the purposes of government
regulation of these monopolies, such as utilities.
SS.E.3.11
2007Explain how cartels
affect product price and output.
SS.E.4 2007 - The Role of
GovernmentStudents will understand that
typical microeconomic roles of government in a market or mixed economy are the
provision of public goods and services, redistribution of income, protection of
property rights, and resolution of market failures.
SS.E.4.1
2007Explain the basic
functions of government in a market economy.
SS.E.4.2
2007Explain how markets
produce too few public goods and how the government determines the amount to
produce through looking at benefits and costs.
SS.E.4.3
2007Describe how the
government taxing harmful spillovers and subsidizing helpful spillovers helps to
resolve the inefficiency they cause.
SS.E.4.4
2007Describe major revenue
and expenditure categories and their respective proportions of local, state and
federal budgets.
SS.E.4.5
2007Explore the ways that
tax revenue is used in the community.
SS.E.4.6
2007Identify taxes paid by
students.
SS.E.4.7
2007Define progressive,
proportional and regressive taxation.
SS.E.4.8
2007Determine whether
different types of taxes (including income, sales and social security) are
progressive, proportional or regressive.
SS.E.4.9
2007Describe how costs of
government policies may exceed benefits, because social or political goals other
than economic efficiency are being pursued.
SS.E.4.10
2007Use an economic
decision-making model to analyze a public policy issue.
SS.E.5 2007 - National
Economic PerformanceStudents
will understand the means by which economic performance is measured.
SS.E.5.1
2007Define aggregate supply
and demand, Gross Domestic Product (GDP), economic growth, unemployment, and
inflation.
SS.E.5.2
2007Explain how GDP,
economic growth, unemployment and inflation are measured.
SS.E.5.3
2007Explain the limitations
of using GDP to measure economic welfare.
SS.E.5.4
2007Explain the four phases
of the business cycle (contraction, trough, expansion and peak).
SS.E.5.5
2007Analyze the impact of
events in United States history, such as wars and technological developments, on
business cycles.
SS.E.5.6
2007Identify the different
causes of inflation and explain who gains and loses because of inflation.
SS.E.5.7
2007Analyze the impact of
inflation on students' economic decisions.
SS.E.5.8
2007Illustrate and explain
cost-push and demand-pull inflation.
SS.E.5.9
2007Recognize that a
country's overall level of income, employment and prices are determined by the
individual spending and production decisions of households, firms and
government.
SS.E.5.10
2007Illustrate and explain
how the relationship between aggregate supply and aggregate demand is an
important determinant of the levels of unemployment and inflation in an economy.
SS.E.5.11
2007Compare and contrast
solutions for reducing unemployment.
SS.E.6 2007 - Money and the
Role of Financial InstitutionsStudents
will understand the role of money and financial institutions in a market
economy.
SS.E.6.1
2007Explain the basic
functions of money.
SS.E.6.2
2007Identify the
composition of the money supply of the United States.
SS.E.6.3
2007Explain the role of
banks and other financial institutions in the economy of the United States.
SS.E.6.4
2007Explain how interest
rates act as an incentive for savers and borrowers.
SS.E.6.5
2007Describe the
organization and functions of the Federal Reserve System.
SS.E.6.6
2007Compare and contrast
credit, savings and investment services available to the consumer from financial
institutions.
SS.E.6.7
2007Demonstrate how banks
create money through the principle of fractional reserve banking.
SS.E.6.8
2007Research and monitor
financial investments, such as stocks, bonds and mutual funds.
SS.E.6.9
2007Analyze the difference
in borrowing costs using various rates of interest when purchasing a major item,
such as a car or house.
SS.E.6.10
2007Formulate a savings or
financial investment plan for a future goal.
SS.E.7 2007 - Economic
StabilizationStudents will understand the
macroeconomic role of the government in developing and implementing economic
stabilization policies and how these policies impact the economy.
SS.E.7.1
2007Define and explain
fiscal and monetary policy.
SS.E.7.2
2007Define the tools of
fiscal and monetary policy.
SS.E.7.3
2007Describe the negative
impacts of unemployment and unexpected inflation on an economy and how
individuals and organizations try to protect themselves.
SS.E.7.4
2007Explain how monetary
policy affects the level of inflation in the economy.
SS.E.7.5
2007Analyze how the
government uses taxing and spending decisions (fiscal policy) to promote price
stability, full employment and economic growth.
SS.E.7.6
2007Analyze how the Federal
Reserve uses monetary tools to promote price stability, full employment and
economic growth.
SS.E.7.7
2007Predict possible future
effects of the national debt on the individual and the economy.
SS.E.7.8
2007Predict how changes in
federal spending and taxation would affect budget deficits and surpluses and the
national debt.
SS.E.7.9
2007Explain how a change in
monetary or fiscal policy can impact a student's purchasing decision.
SS.E.8 2007 -
TradeStudents
will understand why individuals, businesses and governments trade goods and
services and how trade affects the economies of the world.
SS.E.8.1
2007Explain the benefits of
trade among individuals, regions and countries.
SS.E.8.2
2007Define and distinguish
between absolute and comparative advantage.
SS.E.8.3
2007Define trade barriers,
such as quotas and tariffs.
SS.E.8.4
2007Explain why countries
erect barriers to trade.
SS.E.8.5
2007Explain the difference
between balance of trade and balance of payments.
SS.E.8.6
2007Compare and contrast
labor productivity trends in the United States and other developed countries.
SS.E.8.7
2007Explain how most trade
occurs because of a comparative advantage in the production of a particular good
or service.
SS.E.8.8
2007Explain how changes in
exchange rates impact the purchasing power of people in the United States and
other countries.
SS.E.8.9
2007Evaluate the arguments
for and against free trade.
SS.E.8.10
2007Identify skills that
individuals need to be successful in the global economy.