Standards for Transitioning to Driverless Cars

Standard: 4

Name: Markets

The interaction between buyers and sellers determines the market price and allocates scarce goods and services. Buyers and sellers make decisions based, in part, on market prices.

• K-5: Elementary school students learn that markets determine the prices of goods and how people change their behavior when prices change.
• 6-8: In middle school, students are formally introduced to the concepts of supply and demand and what is meant by an equilibrium price. They are presented with a situation where the market price is not in equilibrium and learn how equilibrium is restored. Finally, they discover that a change in the price of one good can impact the market for another good.
• 9-12: In high school, students learn about shortages and surpluses, and how supply and demand changes impact the market price. Finally, the concept of the price elasticity of demand is introduced.Benchmark Students will know that: Students will use this knowledge to: 4.E.1 A market exists whenever buyers and sellers exchange goods or services.Identify items they purchased in online marketplaces and at a local market (e.g., grocery store or school fair) and describe the differences between digital and physical markets. 4.E.2 A price is what people pay when they buy a good or service, and what they receive when they sell a good or service.Identify one of their favorite items purchased with their own money and what price they paid, or what they charged when working for others (e.g., chores around the house, yard work for a neighbor). 4.E.3 Higher prices for a good or service provide incentives for buyers to purchase less of that good or service, and for producers to make or sell more of it. Lower prices for a good or service provide incentives for buyers to purchase more of that good or service, and for producers to make or sell less of it.Provide an example of a good that they did not purchase (or their parents or caregivers would not purchase for them) because it was too expensive and predict how low the price would have to drop before they would be able to buy it. Decide if they would take out the garbage, babysit a sibling, or do some other chore for $1 and, if not, decide at what price they would be willing to do the chore.E: ELEMENTARY STUDENTS National Content Standards in K–12 Economics | 20 Standard 4: Markets

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