Standards for The Economic Impact of the Crisis: Why Doesn’t COVID-19 Affect Everyone Equally?

Standard: 11

Name: Gross Domestic Product (GDP)

(GDP) Gross domestic product, the market value of the final goods and services produced in an economy, is the most commonly used measure of the size of the economy. Because a dollar spent is a dollar earned, GDP equals the total income for the nation.

• 6-8: At the middle school level, gross domestic product is defined and described with the caveat that it does not capture illicit and nonmarket transactions.
• 9-12: At the high school level, students are introduced to the difference between nominal and real GDP. Further limitations of real GDP as well as real GDP per capita are presented. Finally, the concept of what determines GDP in the long run is discussed.Benchmark Students will know that: Students will use this knowledge to: 11.M.1 Gross domestic product (GDP) is a measure of a nation’s economic output. It measures the total market value of all final goods and services produced in a country during some period of time, typically a year.Explain why tires produced by a domestic tire manufacturer are not counted as part of GDP when they are sold to a domestic producer of automobiles, but are counted when they are sold to domestic consumers for their family cars. 11.M.2 GDP can be computed by summing household consumption spending; investment expenditures; purchases by federal, state, and local governments; and net exports.Explain what is included in each component of GDP, and give examples. Explain why imports are subtracted in calculating GDP. 11.M.3 GDP also measures the total income earned in an economy, because when something is bought, the amount of the expenditure becomes income for the resources used to make the good.Explain how the money spent on a consumer purchase, such as a latte at a coffee shop, is distributed as income among the various resources involved in producing and serving the latte. 11.M.4 GDP per capita is GDP divided by the population of a country. It is the average income per person in an economy for a period of time.Explain how two countries with similar GDPs can have drastically different GDP per capita. Identify other countries whose GDP per capita is similar to, less than, and greater than that of the United States. 11.M.5 GDP does not always perfectly capture all production in the economy because it does not capture nonmarket or illicit market economic activities.Contrast a nonmarket activity such as stay-at-home caregiver for a child/elderly parent with a market activity such as using a daycare or nursing home to provide care. Explain why they end up being accounted for differently in GDP.M: MIDDLE SCHOOL STUDENTS National Content Standards in K–12 Economics | 43 Standard 11: Gross Domestic Product (GDP)

Standard: 16

Name: Growth and Fluctuations

Investment in factories, machinery, and technology, and in the health, education, and training of people can encourage economic growth and increase the standard of living in a country. Economic fluctuations, such as recessions, result in a temporary worsening of economic conditions as people have a harder time finding jobs and companies cut back or shut down production.

• 6-8: At the middle school level, students learn the importance of labor productivity in stimulating economic growth. Students learn what can improve labor productivity.
• 9-12: At the high school level, students learn about policies and institutions that could improve economic growth. They also learn about short-run fluctuations in the economy such as recessions and expansions.Benchmark Students will know that: Students will use this knowledge to: 16.M.1 Economic growth is a sustained increase in the quantity of the goods and services produced in a country.Research the real GDP of various countries and draw conclusions about the differences in economic growth between those countries. 16.M.2 Labor productivity is output per worker.Calculate the class’s average labor productivity after completing an activity (i.e., paper airplane production, solving calculations, jumping jacks, etc.). 16.M.3 One way an economy can grow over time is by increasing the number of workers. Another important way for an economy to grow over time is by increasing the output per worker.Perform a simple task such as making paper airplanes and then determine if more students engaged in the task will increase the production of the good or the workers’ productivity. 16.M.4 Workers can improve their labor productivity by using physical capital such as tools and machinery.Provide examples where using tools (an excavator to dig a hole, AI to write a summary of information) can increase the productivity of a worker. 16.M.5 Workers can improve their productivity when they learn new ideas or use better tools that help them perform more efficiently.Estimate the time required to complete tasks (solving a Rubik’s Cube, making an origami animal, or assembling a piece of furniture) with and without instructions. Analyze the differences and draw conclusions on how learning new methods and using tools can enhance workers’ productivity.M: MIDDLE SCHOOL STUDENTS National Content Standards in K–12 Economics | 56 Standard 16: Growth and Fluctuations

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

Standard: 1

Name: Scarcity and Allocation

Productive resources are limited. Therefore, people must choose which goods and services they want and which to forego, and they must also select a method for how to allocate these goods and services.

• K-5: Elementary students are introduced to wants and how goods and services satisfy those wants. The four types of resources are defined, with entrepreneurship included as a resource. Students are introduced to the concept of scarcity. They learn that due to scarcity, they cannot have everything they want and therefore, decisions need to be made in some manner.
• 6-8: Middle school students delve more deeply into the concept of scarcity and the implication of scarcity in terms of the types of choices that scarcity forces society to make. The different types of economic systems societies might use are presented.
• 9-12: High school students are given criteria by which to judge economic systems and policies and are introduced to how scarcity of resources leads to a trade-off between the goods a country produces.Benchmark Students will know that: Students will use this knowledge to: 1.E.1 Economic wants are desires that can be satisfied by consuming a good (an object) or a service (an action).Match a list of wants with the correct example of a good or service that satisfies each want. 1.E.2 Goods are things that people use to satisfy their wants. People can touch, see, consume, or play with goods. Services are things that people do for other people.Identify examples of goods used in the classroom; identify the service provided by a teacher, hair stylist, mechanic, or other producers in the community. 1.E.3 Producers are people who make or grow goods and provide services. Consumers are people who buy or use goods and services.Identify people who are consumers and give examples of goods or services they use or buy. Identify people who are producers and give examples of goods and services they make or grow. Give examples of when they have been consumers and producers. 1.E.4 Productive resources are the capital resources, natural resources, and human resources available to make goods and services. Entrepreneurs combine resources to create new businesses and, therefore, are considered a separate productive resource.Identify the resources required to begin a business the student would like to own, making sure to include each category of resources. 1.E.5 Capital resources are goods that are produced and used to make other goods and services. They can be used over and over again in the production process. They are also called capital goods or physical capital.Draw a picture representing a capital resource used at school. Identify examples of capital resources used to produce a good or service in their community.E: ELEMENTARY STUDENTSThe Standards and Benchmarks Notes: The standard is found at the top of each section. The standard is followed by a narrative on how the standard is designed, in other words, the guiding ideas behind the benchmarks for each level. Benchmarks are provided for three levels: elementary, middle, and high school. The benchmarks do not provide a specific grade level; that determination should be done by local teachers, schools, and districts. The final determination of grade level will vary depending on the students as well as the overall design of the school or district plans. National Content Standards in K–12 Economics | 8 Standard 1: Scarcity and Allocation