Which Kind Of Decisions Involving Resources Must Producers Of Goods And Services Make

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Benchmarks

Benchmarks are taken from the National Voluntary Content Standards

Content Standard 1

At the completion of Grade 4, students will know that:

1. People make choices because they cannot have everything they want.
2. Economic wants are desires that tin can be satisfied past consuming a good, service, or leisure activity.
3. Appurtenances are objects that can satisfy people'due south wants.
4. Services are deportment that can satisfy people'south wants.
5. People'due south choices virtually what goods and services to purchase and eat make up one's mind how resources will exist used.
6. Whenever a choice is made, something is given upward.
7. The opportunity cost of a pick is the value of the best culling given up.
8. People whose wants are satisfied by using goods and services are called consumers.
9. Productive resources are the natural resources, human resources, and capital goods available to make goods and services.
10. Natural resource, such every bit land, are "gifts of nature"; they are nowadays without human intervention.
11. Human resources are the quantity and quality of human being effort directed toward producing goods and services.
12. Capital appurtenances are goods produced and used to make other goods and services.
13. Human capital letter refers to the quality of labor resource, which can be improved through investments in education, training, and wellness.
14. Entrepreneurs are people who organize other productive resources to make goods and services.
15. People who make goods and provide services are called producers.

At the completion of Grade 8, students will know the Grade iv benchmarks for this standard and also that:

1. Scarcity is the condition of not existence able to accept all of the goods and services ane wants. It exists because human wants for goods and services exceed the quantity of goods and services that can exist produced using all available resources.
2. Like individuals, governments and societies experience scarcity because human wants exceed what can be fabricated from all available resources.
3. Choices involve trading off the expected value of one opportunity against expected value of its best alternative.
4. The choices people make have both present and future consequences.
5. The evaluation of choices and opportunity costs is subjective; such evaluations differ beyond individuals and societies.

At the completion of Class 12, students will know the Grade 4 and eight benchmarks for this standard and besides that:

1. Choices fabricated past individuals, firms, or government officials oftentimes have long-run unintended consequences that tin can partially or entirely offset the initial effects of their decisions.

BENCHMARKS for Content Standard 2

At the completion of Grade 4, students volition know that:

1. Few choices are all-or-nothing decisions; they ordinarily involve getting a footling more than of i thing by giving upward a little of something else.
2. A cost is what you requite up when you decide to do something.
3. A do good is something that satisfies your wants.

At the completion of Grade 8, students will know the Grade 4 benchmarks for this standard and as well that:

1. To determine the all-time level of consumption of a product, people must compare the additional benefits with the additional costs of consuming a footling more or a piddling less.

At the completion of Form 12, students will know the Grade iv and eight benchmarks for this standard and also that:

1. Marginal do good is the change in total benefit resulting from an activity. Marginal cost is the change in total cost resulting from an action.
2. As long as the marginal do good of an action exceeds the marginal cost, people are better off doing more of it; when the marginal cost exceeds the marginal do good, they are ameliorate off doing less of it.
3. To produce the profit-maximizing level of output and hire the optimal numberof workers and other resources, producers must compare the marginal benefits and marginal costs of producing a picayune more with the marginal benefits and marginal costs of producing a little less.
4. To decide the optimal level of a public policy plan, voters and government officials must compare the marginal benefits and marginal costs of providing a footling more than or a little less of the programme'due south services.

BENCHMARKS for Content Standard 3

At the completion of Grade 4, students will know that:

1. No method of distributing goods and services can satisfy all wants.
2. At that place are dissimilar ways to distribute goods and services (by prices, control, bulk rule, contests, force, first-come-first-served, sharing as, lottery, personal characteristics, and others), and there are advantages and disadvantages to each.

At the completion of Grade eight, students will know the Course 4 benchmarks for this standard and also that:

1. Scarcity requires the apply of some distribution method, whether the method is selected explicitly or non.
2. There are essential differences between a market economy, in which allocations result from individuals making decisions as buyers and sellers, and a control economy, in which resource are allocated according to primal authority.
3. People in all economies must answer three basic questions: What goods and services will be produced? How will these goods and services be produced? Who volition consume them?
4. National economies vary in the extent to which they rely on government directives (key planning) and signals from private markets to allocate scarce goods, services, and productive resources.
5. As consumers, people use resource in different ways to satisfy different wants. Productive resources tin can be used in different ways to produce unlike goods and services.

At the completion of Grade 12, students will know the Grade four and eight benchmarks for this standard and besides that:

1. Comparison the benefits and costs of unlike allocation methods in order to cull the method that is most appropriate for some specific problem can event in more effective allocations and a more than effective overall allocation system.

BENCHMARKS for Content Standard four

At the completion of Grade 4, students will know that:

1. Rewards are positive incentives that make people ameliorate off.
2. Penalties are negative incentives that make people worse off.
3. Both positive and negative incentives touch people's choices and behavior.
4. People'southward views of rewards and penalties differ because people have different values. Therefore, an incentive can influence different individuals in different ways.

At the completion of Grade eight, students will know the Grade 4 benchmarks for this standard and too that:

1. Responses to incentives are anticipated because people ordinarily pursue their self-involvement.
2. Changes in incentives cause people to alter their behavior in predictable ways.
3. Incentives can be budgetary or non-monetary.

At the completion of Grade 12, students will know the Form 4 and viii benchmarks for this standard and too that:

1. Acting as consumers, producers, workers, savers, investors, and citizens, people respond to incentives in social club to allocate their scarce resources in ways that provide the highest possible returns to them.
2. Small and large firms, labor unions, and educational and other not-for-profit organizations have different goals and confront different rules and constraints. These goals, rules, and constraints influence the benefits and costs of those who piece of work with or for those organizations and, therefore, their behavior.

BENCHMARKS for Content Standard 5

At the completion of Class 4, students will know that:

1. Exchange is trading goods and services with people for other goods and services or for money.
2. The oldest form of commutation is barter-the directly trading of goods and services between people.
3. People voluntarily exchange appurtenances and services because they await to be better off afterwards the exchange.

At the completion of Grade 8, students volition know the Grade four benchmarks for this standard and also that:

1. When people buy something, they value it more than whatever it costs them; when people sell something, they value it less than the payment they receive.
2. Free trade increases worldwide material standards of living.
3. Despite the mutual benefits from trade among people in different countries, many nations utilise trade barriers to restrict free merchandise for national defence force reasons or because some companies and workers are hurt by free merchandise.
4. Imports are strange goods and services purchased from sellers in other nations.
5. Exports are domestic goods and services sold to buyers in other nations.
6. Voluntary exchange among people or organizations in different countries gives people a broader range of choices in buying goods and services.

At the completion of Grade 12, students will know the Course 4 and 8 benchmarks for this standard and also that:

1. A nation pays for its imports with its exports.
2. When imports are restricted past public policies, consumers pay higher prices and task opportunities and profits in exporting firms decrease.

BENCHMARKS for Content Standard 6

At the completion of Grade 4, students will know that:

1. Economic specialization occurs when people concentrate their production on fewer kinds of goods and services than they consume.
2. Segmentation of labor occurs when the production of a skilful is broken down into numerous dissever tasks, with different workers performing each task.
3. Specialization and sectionalisation of labor usually increment the productivity of workers.
4. Greater specialization leads to increased interdependence among producers and consumers.

At the completion of Form 8, students will know the Grade four benchmarks for this standard and besides that:

1. Labor productivity is output per worker.
2. Like trade among individuals within one country, international trade promotes specialization and partitioning of labor and increases output and consumption.
3. As a result of growing international economic interdependence, economical conditions and policies in one nation increasingly affect economic conditions and policies in other nations.

At the completion of Grade 12, students will know the Grade 4 and 8 benchmarks for this standard and likewise that:

1. 2 factors that prompt international trade are international differences in the availability of productive resource and differences in relative prices.
2. Transaction costs are costs (other than price) that are associated with the buy of a skilful or service. When transaction costs subtract, trade increases.
3. Individuals and nations have a comparative advantage in the product of goods or services if they can produce a product at a lower opportunity cost than other individuals or nations.
4. Comparative advantages change over fourth dimension because of changes in factor endowments, resource prices, and events that occur in other nations.

BENCHMARKS for Content Standard vii

At the completion of Grade 4, students volition know that:

1. A price is what people pay when they buy a good or service, and what they receive when they sell a proficient or service.
2. A market exists whenever buyers and sellers exchange goods and services.
3. Near people both produce and consume. As producers they make goods and services; as consumers they apply goods and services.

At the completion of Grade 8, students will know the Course 4 benchmarks for this standard and as well that:

1. Market prices are adamant through the ownership and selling decisions fabricated past buyers and sellers.
2. Relative price refers to the toll of 1 good or service compared to the prices of other goods and services. Relative prices are the basic measures of the relative scarcity of products when prices are set by market place forces (supply and demand).
3. The market clearing or equilibrium cost for a good or service is the 1 cost at which quantity supplied equals quantity demanded.
4. If a toll is above the market immigration toll, it volition fall, causing sellers to produce less and buyers to buy more; if it is below the market immigration price, it volition rise, causing sellers to produce more and buyers to buy less.
5. An exchange rate is the price of one nation's currency in terms of another nation's currency. Like other prices, exchange rates are adamant by the forces of supply and demand. Strange substitution markets classify international currencies.

At the completion of Form 12, students volition know the Grade 4 and 8 benchmarks for this standard and besides that:

1. A shortage occurs when buyers desire to purchase more than producers want to sell at the prevailing price.
2. A surplus occurs when producers desire to sell more than than buyers desire to buy at the prevailing price.
3. Shortages of a product usually effect in price increases in a market economic system; surpluses ordinarily result in price decreases.
4. When the exchange rate between ii currencies changes, the relative prices of the goods and services traded amidst countries using those currencies change; as a result, some groups gain and others lose.

BENCHMARKS for Content Standard eight

At the completion of Form 4, students will know that:

1. Higher prices for a adept or service provide incentives for buyers to purchase less of that practiced or service and for producers to make or sell more of it. Lower prices for a practiced or service provide incentives for buyers to buy more of that good or service and for producers to make or sell less of it.

At the completion of Course 8, students volition know the Course 4 benchmarks for this standard and as well that:

1. An increment in the toll of a good or service encourages people to await for substitutes, causing the quantity demanded to decrease, and vice versa. This relationship between price and quantity demanded, known as the law of need, exists as long as other factors influencing need exercise not change.
2. An increase in the toll of a skilful or service enables producers to cover higher per-unit costs and earn profits, causing the quantity supplied to increase, and vice versa. This relationship between price and quantity supplied is normally true as long every bit other factors influencing costs of product and supply exercise not alter.
3. Markets are interrelated; changes in the price of one expert or service can lead to changes in prices of many other goods and services.
4. Scarce appurtenances and services are allocated in a market economy through the influence of prices on production and consumption decisions.

At the completion of Class 12, students volition know the Course four and viii benchmarks for this standard and also that:

1. Need for a product changes when there is a alter in consumers' incomes or preferences, or in the prices of related goods or services, or in the number of consumers in a market place.
2. Supply of a product changes when there are changes in the prices of the productive resource used to make the good or service, the technology used to make the practiced or service, the turn a profit opportunities available to producers by selling other goods or services, or the number of sellers in a market.
3. Changes in supply or demand cause relative prices to change; in turn, buyers and sellers adjust their buy and sales decisions.
4. Authorities-enforced price ceilings fix below the market clearing price and government-enforced price floors set above the marketplace immigration price distort price signals and incentives to producers and consumers. The price ceilings crusade persistent shortages, while the price floors cause persistent surpluses.

BENCHMARKS for Content Standard 9

At the completion of Grade iv, students will know that:

1. Competition takes identify when there are many buyers and sellers of similar products.
2. Competition among sellers results in lower costs and prices, higher product quality,and better customer service.

At the completion of Grade eight, students volition know the Grade 4 benchmarks for this standard and too that:

1. Sellers compete on the basis of price, product quality, client service, product design and variety, and advertising.
2. Competition amongst buyers of a product results in higher product prices.
3. The level of competition in a market is influenced by the number of buyers and sellers.

At the completion of Grade12, students will know the Grade 4 and 8 benchmarks for this standard and also that:

1. The pursuit of self-interest in competitive markets more often than not leads to choices and beliefs that too promote the national level of economical well-being.
2. The level of contest in an industry is affected by the ease with which new producers can enter the manufacture and past consumers' information well-nigh the availability, price, and quantity of substitute goods and services.
3. Collusion amidst buyers or sellers reduces the level of competition in a market. Collusion is more hard in markets with large numbers of buyers and sellers.
4. The introduction of new products and production methods past entrepreneurs is an important form of competition, and is a source of technological progress and economic growth.

BENCHMARKS for Content Standard 10

At the completion of Grade iv, students will know that:

1. Banks are institutions where people salvage money and earn interest, and where other people infringe money and pay interest.
2. Saving is the part of income not spent on taxes or consumption.

At the completion of Course 8, students volition know the Grade 4 benchmarks for this standard and besides that:

1. Banks and other fiscal institutions channel funds from savers to borrowers and investors.
2. Through the process of collective bargaining with employers, labor unions correspond some workers in negotiations involving wages, fringe benefits, and piece of work rules.
3. Not-for-turn a profit organizations are established primarily for religious, wellness, educational, civic, or social purposes, and they are exempt from certain taxes.

At the completion of Form 12, students will know the Grade four and 8 benchmarks for this standard and besides that:

1. Belongings rights, contract enforcement, standards for weights and measures, and liability rules bear on incentives for people to produce and exchange goods and services.
2. Incorporation allows firms to accumulate sufficient financial capital to make large-scale investments and achieve economies of scale. Incorporation as well reduces the gamble to investors past limiting stockholders' liability to their share of ownership of the corporation.

BENCHMARKS for Content Standard 11

At the completion of Class 4, students will know that:

1. Money is anything widely accepted as last payment for goods and services.
2. Money makes trading easier by replacing barter with transactions involving currency, coins, or checks.
3. People consume goods and services, not money; money is useful primarily because it can exist used to buy goods and services.
4. Producers employ natural resources, human being resource, and capital goods (not coin) to make goods and services.
5. About countries create their own currency for use every bit money.

At the completion of Grade eight, students will know the Class 4 benchmarks for this standard and besides that:

1. As a store of value, coin makes information technology easier for people to salvage and defer consumption until the hereafter.
2. As a unit of account, money is used to compare the market value of different goods and services.
3. Money encourages specialization by decreasing the costs of commutation.

At the completion of Class 12, students will know the Grade iv and 8 benchmarks for this standard and also that:

1. The basic coin supply in the United states consists of currency, coins, and checking account deposits.
2. In many economies, when banks make loans, the money supply increases; when loans are paid off, the money supply decreases.

BENCHMARKS for Content Standard 12

At the completion of Class 12, students will know that:

1. An interest rate is a cost of money that is borrowed or saved.
2. Like other prices, interest rates are determined by the forces of supply and need.
3. The real interest rate is the nominal or current market interest rate minus expected rate of aggrandizement.
4. Higher real interest rates provide incentives for people to salvage more than and to borrow less. Lower existent interest rates provide incentives for people to save less and to borrow more than.
5. Real interest rates unremarkably are positive considering people must exist compensated for deferring the employ of resource from the nowadays into the future.
6. Riskier loans command higher interest rates than safer loans because of the greater chance of default on the repayment of risky loans.
7. College interest rates reduce business organisation investment spending and consumer spending on housing, cars, and other major purchases. Policies that raise interest rates can exist used to reduce these kinds of spending, while policies that decrease interest rates can be used to increase these kinds of spending.

BENCHMARKS for Content Standard thirteen

At the completion of Grade 4, students volition know that:

1. Labor is a human being resource used to produce appurtenances and services.
2. People can earn income by exchanging their human resource (physical or mental work) for wages or salaries.

At the completion of Grade 8, students volition know the Form iv benchmarks for this standard and also that:

1. Employers are willing to pay wages and salaries to workers because they look to sell the appurtenances and services those workers produce at prices high enough to embrace the wages and salaries and all other costs of production.
2. To earn income, people sell productive resources. These include their labor, capital, natural resources, and entrepreneurial talents.
3. A wage or salary is the toll of labor; it commonly is determined by the supply of and demand for labor.
4. More productive workers are probable to exist of greater value to employers and earn college wages than less productive workers.
5. People's incomes, in part, reflect choices they have made about education, training, skill evolution, and careers. People with few skills are more likely to be poor.

At the completion of Grade 12, students will know the Form 4 and 8 benchmarks for this standard and also that:

1. Changes in the structure of the economy, the level of gdp, technology, government policies, and discrimination tin influence personal income.
2. In a labor market place, in the absence of other changes, if wage or salary payments increase, workers will increment the quantity of labor they supply and firms will decrease the quantity of labor they demand.
3. Changes in the prices for productive resources impact the incomes of the owners of those productive resources and the combination of those resources used by firms.
4. Changes in demand for specific goods and services often affect the incomes of the workers who make those appurtenances and services.
5. Two methods for classifying how income is distributed in a nation-the personal distribution of income and the functional distribution-reflect, respectively, the distribution of income amidst different groups of households and the distribution of income among different businesses and occupations in the economic system.

BENCHMARKS for Content Standard xiv

At the completion of Class 4, students will know that:

1. Entrepreneurs are individuals who are willing to take risks in order to develop new products and start new businesses. They recognize opportunities, enjoy working for themselves, and have challenges.
2. An invention is a new product. Innovation is the introduction of an invention into a use that has economic value.
3. Entrepreneurs often are innovative. They attempt to solve problems by developing and marketing new or improved products.

At the completion of Grade viii, students will know the Grade 4 benchmarks for this standard and besides that:

1. Entrepreneurs compare the expected benefits of entering a new enterprise with the expected costs.
2. Entrepreneurs accept the risks in organizing resources to produce goods and services, and they hope to earn profits.
3. Entrepreneurs and other sellers earn profits when buyers purchase the products they sell at prices high enough to cover the costs of production.
4. Entrepreneurs and other sellers incur losses when buyers do not buy to products they sell at prices high enough to cover the costs of production.
5. In addition to profits, entrepreneurs answer to other incentives including the opportunity to be their own dominate, the chance to reach recognition, and the satisfaction of creating new products or improving existing ones. In addition to financial losses, other disincentives to which entrepreneurs respond include the responsibility, long hours, and stress of running a business.

At the completion of Grade 12, students will know the Form 4 and 8 benchmarks for this standard and also that:

1. Entrepreneurial decisions affect job opportunities for other workers.
2. Entrepreneurial decisions are influenced by government tax and regulatory policies.

BENCHMARKS for Content Standard xv

At the completion of Class 4, students volition know that:

1. When workers learn and do new skills they are improving their human capital.
2. Workers can better their productivity by improving their human capital.
3. Workers tin ameliorate their productivity by using physical capital such as tools and machinery.

At the completion of Form eight, students will know the Grade 4 benchmarks for this standard and also that:

1. Standards of living increase equally the productivity of labor improves.
2. Productivity is measured by dividing output (goods and services) by the number of inputs used to produce the output. A change in productivity is a change in output relative to input.
3. Technological change is an advance in knowledge leading to new and improved appurtenances and services and better ways of producing them.
4. Increases in productivity consequence from advances in engineering and other sources.

At the completion of Class 12, students volition know the Grade four and 8 benchmarks for this standard and also that:

1. Economic growth is a sustained rise in a nation'southward product of goods and services. It results from investments in human and concrete capital, enquiry and development, technological alter, and improved institutional arrangements and incentives.
2. Historically, economic growth has been the master vehicle for alleviating poverty and raising standards of living.
3. Economical growth creates new employment and profit opportunities in some industries, but growth reduces opportunities in others.
4. Investments in physical and human capital can increase productivity, but such investments entail opportunity costs and economic risks.
5. Investing in new physical or human uppercase involves a merchandise-off of lower current consumption in anticipation of greater future production and consumption.
6. College interest rates discourage investment.
7. The charge per unit of productivity increment in an economy is strongly afflicted by the incentives that reward successful innovation and investments (in research and evolution, and in physical and human majuscule).

BENCHMARKS for Content Standard 16

At the completion of Grade iv, students will know that:

1. Governments provide sure kinds of goods and services in a marketplace economic system.
2. Governments pay for the goods and services they use or provide past taxing or borrowing from people.

At the completion of Grade viii, students will know the Class iv benchmarks for this standard and also that:

1. Public goods and services provide benefits to more than one person at the aforementioned time, and their utilise cannot be restricted only to those people who have paid to employ them.
2. If a good or service cannot be withheld from those who do not pay for it, providers expect to be unable to sell information technology and therefore will not produce it. In marketplace economies, governments provide some of these appurtenances and services.
3. In the United States, the federal government enforces antitrust laws and regulations to effort to maintain effective levels of contest in as many markets as possible; often, however, laws and regulations also take unintended effects-for example, reducing contest.
4. Most federal taxation revenue comes from personal income and payroll taxes. Payments to social security recipients, the costs of national defence force, medical expenditures, and interest payments on the national debt constitute the bulk of federal government spending.
5. Most country and local government revenues come from sales taxes, grants from the federal regime, personal income taxes, and belongings taxes. The majority of state and local government revenue is spent for education, public welfare, road construction and repair, and public safety.

At the completion of Class 12, students will know the Class 4 and eight benchmarks for this standard and as well that:

1. Markets do not classify resource effectively if (1) property rights are not conspicuously divers or enforced, (ii) externalities (spillover effects) affecting large numbers of people are associated with the production or consumption of a product, or (three) markets are not competitive.
2. An of import part for government in the economy is to define, establish, and enforce property rights. A property right to a skilful or service includes the right to exclude others from using the good or service and the right to transfer the ownership or utilize of the resource to others.
3. Belongings rights provide incentives for the owners of resources to weigh the value of present uses against the value of conserving the resources for hereafter apply.
4. Externalities exist when some of the costs and benefits associated with production and consumption fall on someone other than the producers or consumers of the product.
5. When a toll fails to reflect all the benefits of a product, as well little of the product is produced and consumed. When a cost fails to reflect all the costs of a product, likewise much of information technology is produced and consumed. Government can apply subsidies to help correct for insufficient output; it can use taxes to assistance correct for excessive output; or it can regulate output directly to correct for over- or under-production or consumption of a product.
6. When one producer can supply total output in a market at a cost that is lower than the cost incurred when two or more producers split up production, contest may be impossible. In the absence of competition, regime regulations may and then be used to try to control toll, output, and quality.
7. Governments often redistribute income direct when individuals or involvement groups are not satisfied with the income distribution resulting from markets; governments also redistribute income indirectly equally side-effects of other government actions that bear on prices or output levels for various appurtenances and services.
8. Governments provide an alternative method to markets for supplying appurtenances and services when information technology appears that the benefits to society of doing then outweigh the costs to society. Not all individuals will bear the same costs or share the aforementioned benefits of those policies.
9. A regime policy to correct a marketplace imperfection is not justified economically if its expected costs exceed its expected benefits.

BENCHMARKS for Content Standard 17

At the completion of Class 12, students will know that:

1. Citizens, government employees, and elected officials practice not always straight bear the costs of their political decisions. This oft leads to policies whose costs outweigh their benefits for society.
2. Incentives be for political leaders to implement policies that disperse costs widely over large groups of people and do good relatively small, politically powerful groups of people.
3. Incentives exist for political leaders to favor programs that entail immediate benefits and deferred costs; few incentives favor programs promising immediate costs and deferred benefits, fifty-fifty though the latter programs are sometimes economically more than constructive than the former programs.
4. Although barriers to international trade normally impose more costs than benefits, they are oft advocated by people and groups who look to proceeds essentially from them. Because the costs of these barriers are typically spread over a large number of people who each pay only a niggling and may non recognize the cost, policies supporting trade barriers are frequently adopted through the political process.
5. Cost controls are often advocated past special interest groups. Toll controls reduce the quantity of goods and services consumed, thus depriving consumers of some appurtenances and services whose value would exceed their cost.

BENCHMARKS for Content Standard 18

At the completion of Course 8, students will know that:

1. Gross domestic product (GDP) is a basic measure of a nation'south economic output and income. It is the total market value, measured in dollars, of all final goods and services produced in the economy in one year.
2. Per capita Gross domestic product is Gross domestic product divided by the number of people living in a country.
3. When consumers make purchases, goods and services are transferred from businesses to households in substitution for money payments. That money is used in turn by businesses to pay for productive resources (natural, human, and capital) and to pay taxes.

At the completion of Class 12, students will know the Grade 8 benchmarks for this standard and also that:

1. Nominal Gross domestic product is measured in electric current dollars; thus, an increment in GDP may reverberate not only increases in the production of goods and services, only also increases in prices. GDP adapted for price changes is called real Gdp. Real Gdp per capita is a measure that permits comparisons of textile living standards over fourth dimension and among people in unlike nations.
2. The potential level of real GDP for a nation is determined by the quantity and quality of its natural resources, the size and skills of its labor strength, and the size and quality of its stock of upper-case letter resources.
3. Ane person's spending is other people'due south income. Consequently, an initial change in spending (consumption, investment, government, or net exports) usually results in a larger change in national levels of income, spending, and output.
4. When desired expenditures for consumption, investment, regime spending, and internet exports are greater than the value of a nation'southward output of terminal goods and services, Gdp rises and inflation occurs and/or employment rises.
5. When desired expenditures for consumption, investment, government spending, and internet exports are less than the value of a nation's output of last appurtenances and services, GDP decreases and inflation and/or employment decreases.

BENCHMARKS for Content Standard nineteen

At the completion of Grade 4, students will know that:

1. Inflation is an increase in most prices; deflation is a subtract in most prices.
2. Unemployment exists when people who are actively looking for work do non have jobs.

At the completion of Grade eight, students will know the Grade 4 benchmarks for this standard and also that:

1. When unemployment exists, an economy'south production is less than potential Gross domestic product and some labor resource are not used.
2. The labor forcefulness consists of people aged sixteen and over who are employed or actively seeking work.
3. Inflation reduces the value of money.
4. When people's incomes increase more slowly than the inflation rate, their purchasing ability declines.

At the completion of Grade 12, students will know the Grade 4 and eight benchmarks for this standard and also that:

1. The unemployment rate is the percentage of the labor force that is willing and able to work, does not currently have a job, and is actively looking for work.
2. The unemployment rate is an imperfect mensurate of unemployment considering information technology does not (1) include workers whose chore prospects are so poor that they are discouraged from seeking jobs, or (2) reverberate part-time workers who are looking for full-time work.
3. Unemployment rates differ for people of unlike ages, races, and sexes. This reflects differences in piece of work feel, education, training, and skills, as well equally discrimination.
4. Unemployment can be caused past people irresolute jobs, by seasonal fluctuations in demand, by changes in the skills needed by employers, or by cyclical fluctuations in the level of national spending.
5. Full employment means that the just unemployed people in the economy are those who are changing jobs.
6. The consumer price index (CPI) is the near commonly used measure of price level changes. Information technology tin can be used to compare the price level in one year with price levels in earlier or subsequently periods.
7. Expectations of increased inflation may pb to higher involvement rates.
8. The costs of inflation are different for different groups of people. Unexpected inflation hurts savers and people on fixed incomes; it helps people who have borrowed money at a stock-still rate of interest.
9. Inflation imposes costs on people beyond its effects on wealth distribution because people devote resources to protect themselves from expected inflation.

BENCHMARKS for Content Standard 20

At the completion of Grade 12, students will know that:

1. Fiscal policies are decisions to alter spending and tax levels by the federal government. These decisions are adopted to influence national levels of output, employment, and prices.
2. In the brusque run, increasing federal spending and/or reducing taxes tin can promote more employment and output, just these policies also put upward pressure on the price level and involvement rates. Decreased federal spending and/or increased taxes tend to lower price levels and interest rates, only they reduce employment and output levels in the brusk run.
3. In the long run, the interest-rate effects of fiscal policies lead to changes in private investment spending past businesses and individuals that partially, if not entirely, offset the output and employment effects of financial policy.
4. The federal authorities's annual upkeep is balanced when its revenues from taxes and user fees equal its expenditures. The government runs a budget arrears when its expenditures exceed its revenues. The authorities runs a surplus when its revenues exceed its expenditures.
5. When the government runs a budget arrears, it must borrow from individuals, corporations, or financial institutions to finance that arrears.
6. The national debt is the full amount of money the federal government owes. This is the accumulated net sum of its annual deficits and surpluses. The government pays interest on the money information technology borrows to finance the national debt.
7. In the long run, inflation results from increases in a nation's money supply that exceed increases in its output of goods and services.
8. Monetary policies are decisions past the Federal Reserve Arrangement that lead to changes in the supply of coin and the availability of credit. Changes in the money supply can influence overall levels of spending, employment, and prices in the economy by inducing changes in interest rates charged for credit and by affecting the levels of personal and business organization investment spending.
9. The major monetary policy tool that the Federal Reserve System uses is open market place purchases or sales of government securities. Other policy tools used past the Federal Reserve Arrangement include increasing or decreasing the discount rate charged on loans it makes to commercial banks and raising or lowering reserve requirements for commercial banks.

Source: https://krannert.purdue.edu/centers/pcee/curriculum-help/benchmarks.php

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