STATE GOAL 15: Understand economic systems, with an emphasis on the United

States.
Why This Goal Is Important: Why This Goal Is Important: People's lives are directly affected by
the economies of cities, states, nations and the world. All people engage in economic activity:
buying, selling, trading, producing and consuming. By understanding economic systems—and
how economics blends with other social sciences, students will be able to make more informed
choices, prudently use resources and function as effective participants in the economies around
them.

A. Understand how different economic systems operate in the exchange, production,

distribution and consumption of goods and services.
EARLY LATE MIDDLE/JUNIOR
ELEMENTARY ELEMENTARY HIGH SCHOOL
15.A.1a Identify 15.A.2a Explain how
advantages and economic systems
disadvantages of decide what goods
different ways to and services are
distribute goods and produced, how they
services. are produced and who
consumes them.
15.A.1b Describe how 15.A.2b Describe
wages/salaries can be how incomes reflect
earned in exchange for choices made about
work. education and careers.
15.A.2c Describe
unemployment.
EARLY HIGH LATE HIGH
SCHOOL SCHOOL
15.A.3a Explain how 15.A.4a Explain how 15.A.5a Explain the
market prices signal national economies impact of various
producers about what, vary in the extent that determinants of
how and how much to government and economic growth (e.g.,
produce. private markets help investments in
allocate goods, human/physical
services and capital, research and
resources. development,
technological change)
on the economy.
15.A.3b Explain the 15.A.4b Describe 15.A.5b Analyze the
relationship between Gross Domestic impact of economic
productivity and Product (GDP). growth.
wages.
15.A.3c Describe the 15.A.4c Analyze the 15.A.5c Analyze the
relationship between impact of inflation on impact of various
consumer purchases an individual and the determinants on the
and businesses paying economy as a whole. levels of GDP (e.g.,
for productive quantity/quality of
resources. natural/capital
resources, size/skills
of the labor force).
15.A.3d Describe the 15.A.4d Explain the 15.A.5d Explain the
causes of unemploy- effects of comparative value of
ment (e.g., seasonal unemployment on the the Consumer Price
fluctuation in demand, economy. Index (e.g., goods and
changing jobs, services in one year
changing skill with earlier or later
requirements, national periods).
spending).

B. Understand that scarcity necessitates choices by consumers.

EARLY LATE MIDDLE/JUNIOR EARLY HIGH LATE HIGH
ELEMENTARY ELEMENTARY HIGH SCHOOL SCHOOL SCHOOL
15.B.1 Explain why 15.B.2a Identify 15.B.3a Describe the 15.B.4a Explain the 15.B.5a Analyze the
consumers must make factors that affect how “market clearing price” costs and benefits of impact of changes in
choices. consumers make their of a good or service. making consumer non-price determinants
choices. purchases through (e.g., changes in
differing means (e.g., consumer income,
credit, cash). changes in tastes and
preferences) on
consumer demand.
 15.B.2b Explain the 15.B.3b Explain the 15.B.4b Analyze the 15.B.5b Analyze how
relationship between effects of choice and impact of current inflation and interest
the quantity of competition on events (e.g., rates affect consumer
goods/services individuals and the weather/natural purchasing power.
purchased and their economy as a whole. disasters, wars) on
price. consumer prices.
15.B.2c Explain that 15.B.5c Analyze
when a choice is elasticity as it applies
made, something else to supply and demand
is given up. and consumer
decisions.

C. Understand that scarcity necessitates choices by producers.

EARLY LATE MIDDLE/JUNIOR EARLY HIGH LATE HIGH
ELEMENTARY ELEMENTARY HIGH SCHOOL SCHOOL SCHOOL
15.C.1a Describe how 15.C.2a Describe the 15.C.3 Identify and 15.C.4a Analyze the 15.C.5a Explain how
human, natural and relationship between explain the effects of impact of political competition is
capital resources are price and quantity various incentives to actions and natural maintained in the
used to produce goods supplied of a good or produce a good or phenomena (e.g., United States
and services. service. service. wars, legislation, economy and how the
natural disaster) on level of competition
producers and varies in differing
production decisions. market structures
(e.g., monopoly,
oligopoly, monopolistic
and perfect
competition).
15.C.1b Identify 15.C.2b Identify and 15.C.4b Explain the 15.C.5b Explain how
limitations in resources explain examples of importance of changes in non-price
that force producers to competition in the research, determinants of supply
make choices about economy. development, (e.g., number of
what to produce. invention, technology producers) affect
and entrepreneurship producer decisions.
to the United States
economy.
15.C.2c Describe how 15.C.5c Explain how
entrepreneurs take government
risks in order to intervention with
produce goods or market prices can
services. cause shortages or
surpluses of a good or
service (e.g., minimum
wage policies, rent
freezes, farm
subsidies).

D. Understand trade as an exchange of goods or services.

EARLY LATE MIDDLE/JUNIOR EARLY HIGH LATE HIGH
ELEMENTARY ELEMENTARY HIGH SCHOOL SCHOOL SCHOOL
15.D.1a Demonstrate 15.D.2a Explain why 15.D.3a Explain the 15.D.4a Explain the 15.D.5a Explain how
the benefits of simple people and countries effects of increasing meaning and transaction costs affect
voluntary exchanges. voluntarily exchange and declining imports importance of “balance decisions to produce
goods and services. and exports to an of trade” and how or consume.
individual and to the trade surpluses and
nation’s economy as a deficits between
whole. nations are
determined.
15.D.1b Know that 15.D.2b Describe the 15.D.3b Explain how 15.D.4b Describe the 15.D.5b Analyze why
barter is a type of relationships among comparative relationships between trade barriers and
exchange and that specialization, division advantage forms the the availability and exchange rates affect
money makes of labor, productivity of basis for specialization price of a nation’s the flow of goods and
exchange easier. workers and and trade among resources and its services among
interdependence nations. comparative nations.
among producers and advantage in relation
consumers. to other nations.
15.D.3c Explain how 15.D.4c Describe the 15.D.5c Explain how
workers can affect impact of worker technology has
their productivity productivity (output per affected trade in the
through training and by worker) on business, areas of
using tools, machinery the worker and the transportation,
and technology. consumer. communication,
finance and
manufacturing.

E. Understand the impact of government policies and decisions on production and

consumption in the economy.
EARLY LATE MIDDLE/JUNIOR EARLY HIGH LATE HIGH
ELEMENTARY ELEMENTARY HIGH SCHOOL SCHOOL SCHOOL
15.E.1 Identify goods 15E.2a Explain how 15.E.3a Identify the 15.E.4a Explain why 15.E.5a Explain how
and services provided and why public goods types of taxes levied government may and why government
by government. and services are by differing levels of intervene in a market redistributes income in
provided. governments (e.g., economy. the economy.
income tax, sales tax,
property tax).
15.E.2b Identify 15.E.3b Explain how 15.E.4b Describe 15.E.5b Describe how
which public goods laws and government social and fiscal, monetary and
and services are policies (e.g., property environmental benefits regulatory policies
provided by differing rights, contract and consequences of affect overall levels of
levels of government. enforcement, standard production and con- employment, output
weights/measurement sumption. and consumption.
s) establish rules that
help a market
economy function
effectively.
15.E.4c Analyze the 15.E.5c Describe key
relationship between a schools of thought
country’s (e.g., classical,
science/technology Keynesian, monetarist,
policies and its level supply-side) and
and balance of trade. explain their impact on
government policies.