Standards for NAFTA: Did Jobs Get Sucked Out of the United States?

Standard: 15

Name: Inflation

Inflation is an increase in the average price level. Inflation, both expected and unexpected, imposes costs and benefits on individuals and the overall economy.

• K-5: Elementary school students learn that prices change.
• 6-8: Middle school students learn that inflation is an increase in prices, and that price indices, such as the Consumer Price Index (CPI), are used to calculate the inflation rate and how inflation impacts the purchasing power of money.
• 9-12: At the high school level, students learn how inflation impacts the purchasing power of income. In addition, some of the causes of inflation are introduced as well as the adverse effects of expected and unexpected inflation.Benchmark Students will know that: Students will use this knowledge to: 15.E.1 The prices of goods and services can increase or decrease over time.Explain why candy is more expensive now than it was 50 years ago.E: ELEMENTARY STUDENTS

Standard: 9

Name: International Trade

International trade can increase the total amount of goods and services available, but these gains are not distributed equally between or within countries. Governments use trade policies such as tariffs or subsidies to change trade flows with different countries.

• K-5: Elementary school students learn what trade, exports, and imports are and how they connect countries.
• 6-8: Middle school students learn about gains from trade and how these gains might not be equally distributed. They also learn reasons why countries might decide to restrict trade.
• 9-12: High school students are formally introduced to the idea of comparative advantage and reasons countries may have a comparative advantage. The debate on globalization and regionalization is discussed. Finally, students are introduced to exchange rates and learn how a change in exchange rates affects prices of traded goods.Benchmark Students will know that: Students will use this knowledge to: 9.E.1 International trade is people and businesses in different countries buying and selling goods and services from each other, offering more choices and improving the quality of life of their people. By specializing in making certain products, countries can trade for other things they need, making everyone better off.Give real-world examples of international trade, such as Mexico selling avocados and mangoes to the United States and in return the United States selling machinery and technology to Mexico. 9.E.2 Trade makes countries more interdependent because countries rely on each other for certain goods and services.Explain how trade leads to interdependence between countries and why it is important for countries to trade with each other. 9.E.3 Exports are domestic goods and services that are sold to buyers in other countries. Imports are foreign goods and services that are purchased from sellers in other countries.Give examples of major products that are produced in the United States and exported to other countries, and identify these countries. Examine labels of products that are consumed or used daily at school or at home and compile a list of imported products and the countries from which they are imported.E: ELEMENTARY STUDENTS National Content Standards in K–12 Economics | 36 Standard 9: International Trade

Standard: 3

Name: Specialization and Exchange

Specialization and the division of labor allow people to benefit from voluntary exchange. Voluntary exchange occurs only when all participating parties expect to gain.

• K-5: Elementary students learn about the benefits of specialization and the division of labor. They understand that exchange becomes necessary when people have specialized in a skill. Barter is identified as an inefficient way to trade and how money makes trading easier is discussed in Standard 13.
• 6-8: By middle school, students are expected to understand that both buyers and sellers anticipate benefiting from exchange.
• 9-12: The high school student learns how transaction costs may limit trade. The role of markets is outlined in Standard 4.Benchmark Students will know that: Students will use this knowledge to: 3.E.1 Most people produce and consume goods and services.Give an example of a good a farmer or florist produces and a good or service they consume. 3.E.2 Economic specialization occurs when people concentrate their production on fewer varieties of goods and services than they consume.Name several adults in the school or community who specialize in the production of a good or service (plumber, law enforcement officer, teacher, hair stylist, etc.) and identify other goods and services that these individuals consume but do not produce for themselves. 3.E.3 Division of labor occurs when the production of a good or service is broken down into numerous separate tasks, with different workers performing each task.Participate in a simulated assembly line and identify the separate operations and the different tasks involved. Identify examples of goods produced in the U.S. using division of labor. 3.E.4 Specialization and division of labor usually increase the productivity of workers.Work individually as a craftsperson to produce a product alone and then work as a member of a small group to produce the same product. Explain why more products usually are produced when each member of the group performs a particular task in making the good. 3.E.5 People specialize in producing what they do best and then exchange their income for goods and services they do not produce.Describe how a specialist’s life such as a long-haul truck driver, accountant, lawyer, or childcare worker would change if they were unable to exchange their income to buy goods or pay for services needed.E: ELEMENTARY STUDENTS National Content Standards in K–12 Economics | 17 Standard 3: Specialization and Exchange

Standard: 12

Name: Unemployment

Unemployment is when a person is looking for work and cannot find it. Unemployment imposes costs on individuals and the overall economy. Unemployment increases during recessions and decreases during periods of recovery.

• K-5: Elementary school students learn that adults sometimes cannot find jobs.
• 6-8: Middle school students learn how the unemployment rate is calculated.
• 9-12: High school students learn the limitations of the unemployment rate. They also learn some of the potential reasons for unemployment and why the unemployment rate will never be zero.Benchmark Students will know that: Students will use this knowledge to: 12.E.1 Unemployment exists when adults who are looking for work cannot find jobs.Explain why a new college graduate that has not gotten a job is unemployed, but a retired person is not unemployed.E: ELEMENTARY STUDENTS