Standard 4—Economics

Students will use a variety of intellectual skills to demonstrate their understanding of how the United States and other societies develop economic systems and associated institutions to allocate scarce resources, how major decision-making units function in the U.S. and other national economies, and how an economy solves the scarcity problem through market and nonmarket mechanisms.

Key ideas are identified by numbers (1).
Performance indicators are identified by bullets.
Sample tasks are identified by triangles (s).

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Elementary

1. The study of economics requires an understanding of major economic concepts and systems, the principles of economic decision making, and the interdependence of economies and economic systems throughout the world.

Students:

• know some ways individuals and groups attempt to satisfy their basic needs and wants by utilizing scarce resources
• explain how people’s wants exceed their limited resources and that this condition defines scarcity
• know that scarcity requires individuals to make choices and that these choices involve costs
• study about how the availability and distribution of resources is important to a nation’s economic growth
• understand how societies organize their economies to answer three fundamental economic questions: What goods and services shall be produced and in what quantities ? How shall goods and services be produced? For whom shall goods and services be produced?
• investigate how production, distribution, exchange, and consumption of goods and services are economic decisions with which all societies and nations must deal.

This is evident, for example, when students:
s role-play a family or group situation in which group members make an economic decision about whether to purchase a new car, plan a family or group trip, or invest the money
s discuss the differences between capital, human, and natural resources and classify pictures of each resource type in the appropriate category
s use map symbols to locate and identify natural resources found in different regions of the United States and in other countries in the Western Hemisphere
s identify several personal as well as family buying choices, list their associated costs and benefits, and explain how and why particular decisions are/have been made; clarify how prices and one’s own values influence individual and family decision making
s describe the characteristics of at least two of the following economic units: a family, a worker, a small business, a labor union, a large corporation, a government agency (local, state, or national); identify the kinds of economic choices each economic unit must make and explain the positive and negative results of at least one choice
s organize information based on interviews of a laborer, a service provider, a small business owner, a banker, a business executive, an elected government official, or a government employee to identify how individuals produce and distribute goods and services, why individuals make the kinds of decisions they make, and how individuals describe the effects of their decisions on others
s observe economic characteristics of places; draw conclusions about how people in families, schools, and communities all over the world must depend on others to help them meet their needs and wants.

2. Economics requires the development and application of the skills needed to make informed and well-reasoned economic decisions in daily and national life.

Students:

• locate economic information, using card catalogues, computer databases, indices, and library guides
• collect economic information from textbooks, standard references, newspapers, periodicals, and other primary and secondary sources
• make hypotheses about economic issues and problems, testing, refining, and eliminating hypotheses and developing new ones when necessary
• present economic information by developing charts, tables, diagrams, and simple graphs.

This is evident, for example, when students:
s collect and discuss newspaper articles about economic issues and problems affecting their community, region, or the State
s design a display board showing how they might acquire and spend income
s research a local industry to determine what it produces, how it makes this product, its distribution system, and how the finished product is marketed
s analyze a set of graphs or tables showing selected imports and exports for the United States to make hypotheses about what might happen if these imports or exports increase or decrease in value
s use a variety of textbooks and news articles to identify a list of potential economic problems or issues facing the United States or other nations in the Western Hemisphere. Working in groups, brainstorm a list of possible solutions, the potential effects of these solutions, and rank order the solutions in terms of their likelihood of success.

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Intermediate

1. The study of economics requires an understanding of major economic concepts and systems, the principles of economic decision making, and the interdependence of economies and economic systems throughout the world.

Students:

• explain how societies and nations attempt to satisfy their basic needs and wants by utilizing scarce capital, natural, and human resources
• define basic economic concepts such as scarcity, supply and demand, markets, opportunity costs, resources, productivity, economic growth, and systems
• understand how scarcity requires people and nations to make choices which involve costs and future considerations
• understand how people in the United States and throughout the world are both producers and consumers of goods and services
• investigate how people in the United States and throughout the world answer the three fundamental economic questions and solve basic economic problems
• describe how traditional, command, market, and mixed economies answer the three fundamental economic questions
• explain how nations throughout the world have joined with one another to promote economic development and growth.

This is evident, for example, when students:
s investigate how different countries in Europe and the Middle East solve problems related to satisfying basic needs. Compile a list of available resources, industries, modes of transportation, and economic problems
s define and apply basic economic concepts such as supply and demand, price, market, and economic growth in an investigation of a national or regional economic question or problem
s understand the concept of opportunity cost (the highest valued alternative not chosen) and how the concept applies to personal and business decision making
s consider case studies comparing economic decisions and choices made by groups and nations involving questions about scarce resources
s compare basic economic systems throughout the world, classifying them as traditional, command, market, or mixed. Focus on questions such as: What is produced? How is it produced, distributed, and consumed? Which natural, capital, and human resources are available? How are prices set? What is meant by economic growth?
s identify the basic ideas and values of the United States economic system (e.g., individual entrepreneurship, private ownership of property, laissez-faire economics, cheap labor supply, free enterprise, monopolies, and governmental regulation) and how these factors contributed to the American economic system; compare these ideas and values to those of other economic systems
s define and apply the concepts of inflation, deflation, depression, fiscal policies, and monetary policy in the context in which these terms are used; examine the historical context of at least one of these concepts during an important event in United States history (e.g., industrialization of America and the rise of the labor movement, the Great Depression, the 1970s inflation)
s develop a case study of a New York-produced product to show how the State participates in a world economy
s investigate the economy of the United States and determine how decisions are made about what goods and services are to be produced, and how they are distributed; compare how these decisions are made in other countries; identify the major imports/exports of the country and explain the effects of international trade on the American and other national economies; discuss how values may influence the economy.

2. Economics requires the development and application of the skills needed to make informed and well-reasoned economic decisions in daily and national life.

Students:

• identify and collect economic information from standard reference works, newspapers, periodicals, computer databases, textbooks, and other primary and secondary sources
• organize and classify economic information by distinguishing relevant from irrelevant information, placing ideas in chronological order, and selecting appropriate labels for data
• evaluate economic data by differentiating fact from opinion and identifying frames of reference
• develop conclusions about economic issues and problems by creating broad statements which summarize findings and solutions
• present economic information by using media and other appropriate visuals such as tables, charts, and graphs to communicate ideas and conclusions.

This is evident, for example, when students:
s research a number of economic conditions (e.g., availability of resources, size and distribution of population, degree of technology, political structure) about a particular nation in Europe, Africa, or the Middle East
s organize economic information about different kinds of economic systems (i.e., traditional, market, command) in terms of what to produce, how to produce it, and for whom to produce the product
s investigate different societies and groups living in Africa, Asia, and the Middle East to determine their available resources, industries, and problems in meeting basic needs. List alternative ways to resolve their economic problems and evaluate the effectiveness of each proposed solution
s design a class-size mural that shows how people living in Europe, Asia, and Africa produce and consume various resources, goods, and services. Indicate how these ways of making a living have changed over time
s research a major United States industry such as steel, automobile, mining, farming, or banking to determine the governmental controls placed on it either directly or indirectly. Determine the extent to which the federal government interacts with and controls these industries
s prepare a classroom questionnaire that asks the historical/economic question: What makes a nation an industrial leader? Survey adults to determine their opinions on the question, categorize the findings, and draw conclusions.

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Commencement

1. The study of economics requires an understanding of major economic concepts and systems, the principles of economic decision making, and the interdependence of economies and economic systems throughout the world.

Students:

• analyze the effectiveness of varying ways societies, nations, and regions of the world attempt to satisfy their basic needs and wants by utilizing scarce resources
• define and apply basic economic concepts such as scarcity, supply/demand, opportunity costs, production, resources, money and banking, economic growth, markets, costs, competition, and world economic systems
• understand the nature of scarcity and how nations of the world make choices which involve economic and social costs and benefits
• describe the ideals, principles, structure, practices, accomplishments, and problems related to the United States economic system
• compare and contrast the United States economic system with other national economic systems, focusing on the three fundamental economic questions
• explain how economic decision making has become global as a result of an interdependent world economy
• understand the roles in the economic system of consumers, producers, workers, investors, and voters.

This is evident, for example, when students:
s through the use of market case studies of the U.S. economy and the economies of other countries, investigate how values and incentives influence people’s choices, how the economic system affects people’s incentives, how people gain from voluntary trade, and how people’s choices influence the value of a good or service
s examine current and historical economic data (e.g., workforce composition and participation, natural resource deposits, industrial base, financial institutions, state’s gross domestic product) to create an economic profile of the New York State and United States economies; investigate the role of government (state and national) with particular attention to services provided that foster economic activity and regulations designed to protect the environment
s complete a case study of a nation or society, focusing on the fundamental economic questions: What goods and services are produced and in what quantities? How are these goods and services produced? For whom are these goods and services produced?
s investigate one or more current economic issues in the United States, including their historical antecedents; issues may include, but are not limited to: impact of fiscal policy, the role of Federal Reserve and monetary policy, corporate downsizing and unemployment, economic growth and the information age, welfare policy, health care policy, the national debt, defense spending, foreign aid, affirmative action; consider policy positions, and the possible conflicting goals of government, such as full employment, price stability, economic justice, economic freedom, and economic security
s recognize why international trade takes place (because of comparative advantage) and the role of exchange rates in fostering or inhibiting trade; become familiar with the basics of the balance of payments and international capital flows; investigate the importance of New York City as a primary world financial center and how the City’s financial role is enhanced by technology
s graph textbook or teacher-developed data to display supply/demand schedules. Interpret graphs identifying prices and situations that would cause the demand and supply schedules to change
s describe a list of economic decisions students will make during the coming year, explaining how the concept of scarcity is involved in each decision. For each decision, discuss a possible opportunity cost involved. Research newspapers, periodicals, and computer databases to compile a list of local, State, or federal government economic decisions explaining how the concept of scarcity affected each decision
s interpret and analyze the graphic information included in the annual Economic Report of the President,describing federal and state expenditures
s analyze how traditional, command, market, and mixed economies would address the following issues: health care for individuals with special needs (i.e., elderly, people with disabilities), price supports for farmers, aid to education, and environmental controls of industries
s examine the nature and functions of money in an economy; understand the basics of banking, including the role of the Federal Reserve Bank system; investigate how forms of money and the nature of credit have changed over time; recognize how technology increases the flow of financial information and increases the speed of financial transactions
s conduct an in-depth investigation and analysis of the economic and historical impact of one of the following: the era of Adam Smith and the emergence of capitalism, the Industrial Revolution, Karl Marx and the emergence of communism, the fall of the Berlin Wall, the "opening up" of former communist countries to capitalism, and how economic change has affected families throughout history.

2. Economics requires the development and application of the skills needed to make informed and well-reasoned economic decisions in daily and national life.

Students:

• identify, locate, and evaluate economic information from standard reference works, newspapers, periodicals, computer databases, monographs, textbooks, government publications, and other primary and secondary sources
• use economic information by identifying similarities and differences in trends; inferring relationships between various elements of an economy: organizing and arranging information in charts, tables, and graphs; extrapolating and making conclusions about economic questions, issues, and problems
• apply a problem-solving model to identify economic problems or issues, generate hypotheses, test hypotheses, investigate and analyze selected data, consider alternative solutions or positions, and make decisions about the best solution or position
• present economic information and conclusions in different formats, including graphic representations, computer models, research reports, and oral presentations.

This is evident, for example, when students:
s analyze graphs and charts describing federal, state, and local government expenditures in different categories (e.g., education, police and fire, health care, welfare, transportation) and design a graphic representation or computer model that compares/ contrasts these expenditures
s construct a personal budget showing how they would spend a particular income for a period of months. Classify the expenditures and present this information in graphic form
s research the early struggles of organized labor, including topics such as labor conditions in specific industries in the nineteenth century, important pieces of labor legislation, and major labor conflicts. Prepare an oral or research report that summarizes the findings and evaluates the effectiveness of the solutions to these problems, conflicts, or conditions
s list problems which affect the environment and the quality of life in the United States. Research federal, state, and local government programs developed to resolve these problems. Evaluate the costs and benefits of each governmental action and propose additional actions
s prepare a series of questions for an interview with a commercial banker focusing on the relationship of that bank with the Federal Reserve System and how and why interest rates change. Graph interest rates for a two-year period and explain how and why they might have changed
s research periodicals, computer databases, and government publications to investigate different views on the role of the government in the economy. Take and defend a position on what role government should play in managing the economy.

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