Standards for What Do You Want To Be?

Standard: 8

Name: Labor and Income

Income for most people is determined by the market value of their labor and other productive resources they sell. A worker’s wage depends on their productivity and the price of the product they produce. Many factors affect the distribution of income in an economy, including differences in educational levels, experience, and career choices, as well as discrimination and government policies.

• K-5: In elementary school, students learn that people work to earn income.
• 6-8: In middle school, students learn that income from labor depends on worker productivity and the price of the goods the worker produces. They are also introduced to ways in which other resources can generate income.
• 9-12: In high school, students explore income distribution and factors that cause differences in income levels among households.Benchmark Students will know that: Students will use this knowledge to: 8.E.1 Labor is a human resource that is used to produce goods and services.Identify different types of labor (human resources) and the goods and services they produce in their community. 8.E.2 Income is the payment people earn for work they do. People spend, save, or pay taxes with their income.Explain how people earn income and why they don’t spend all their income on buying goods and services. 8.E.3 People can earn income by exchanging their labor (physical or mental work) for wages or salaries.Interview adults about why they work and explain the reasons people have for working. Explain the difference between a wage and a salary.E: ELEMENTARY STUDENTS

Name: Earning Income

Standard: 1

• Students will understand that: Most people earn wage and salary income in return for working, and they can also earn income from interest, dividends, rents, entrepreneurship, business profits, or increases in the value of investments. Employee compensation may also include access to employee benefits such as retirement plans and health insurance. Employers generally pay higher wages and salaries to more educated, skilled, and productive workers. The decision to invest in additional education or training can be made by weighing the benefit of increased income-earning and career potential against the opportunity costs in the form of time, effort, and money. Spendable income is lower than gross income due to taxes assessed on income by federal, state, and local governments.