Related Economics and Personal Finance Standards of Learning
Economics and Personal Finance Standards of Learning
The student will demonstrate knowledge of basic economic concepts and structures by
- describing how consumers, businesses, and government decision makers face scarcity of resources and must make trade-offs and incur opportunity costs;
- explaining that choices often have long-term unintended consequences;
- describing how effective decision making requires comparing the additional costs (marginal costs) and additional benefits (marginal benefits);
- identifying factors of production;
- comparing the characteristics of market, command, tradition, and mixed economies; and
- identifying Adam Smith and describing the characteristics of a market economy.
The student will demonstrate knowledge of the role of producers and consumers in a market economy by
- describing how consumers, producers, workers, savers, investors, and citizens respond to incentives;
- explaining how businesses respond to consumer sovereignty;
- identifying the role of entrepreneurs;
- comparing the costs and benefits of different forms of business organization, including sole proprietorship, partnership, corporation, franchise, and cooperative;
- describing how costs and revenues affect profit and supply;
- describing how increased productivity affects costs of production and standard of living;
- examining how investment in human capital, capital goods, and technology can improve productivity;
- describing the effects of competition on producers, sellers, and consumers;
- explaining why monopolies or collusion among sellers reduces competition and raises prices; and
- illustrating the circular flow of economic activity.
The student will demonstrate knowledge of the price system by
- examining the laws of supply and demand and the determinants of each;
- explaining how the interaction of supply and demand determines equilibrium price;
- describing the elasticity of supply and demand; and
- examining the purposes and implications of price ceilings and price floors.
The student will demonstrate knowledge that many factors affect income by
- examining the market value of a worker’s skills and knowledge;
- identifying the impact of human capital on production costs;
- explaining the relationship between a person’s own human capital and the resulting income potential; and
- describing how changes in supply and demand for goods and services affect income.
The student will demonstrate knowledge of the nation’s financial system by
- defining the role of money; and
- explaining the role of financial markets and financial institutions.
The student will develop consumer skills by
- examining basic economic concepts and their relation to product prices and consumer spending;
- examining the effect of supply and demand on wages and prices;
- describing the steps in making a purchase decision, including the roles of marginal benefit and marginal cost;
- determining the consequences of conspicuous consumption;
- describing common types of contracts and the implications of each;
- demonstrating comparison-shopping skills;
- maintaining a filing system for personal financial records;
- examining the impact of advertising and marketing on consumer demand and decision making in the global marketplace;
- accessing reliable financial information from a variety of sources;
- explaining consumer rights, responsibilities, remedies, and the importance of consumer vigilance; and
- examining precautions for protecting identity and other personal information.