Standards for Medicare and the National Debt

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: 13

Name: Money

Money makes it easier to trade, borrow, save, invest, and compare the value of goods and services. Money does not need to have an intrinsic value; it derives its value from widespread acceptance in its exchange for goods and services.

• K-5: The elementary school student learns that people buy things with money instead of using barter.
• 6-8: The middle school student learns a broad definition of money as well as the functions of money.
• 9-12: The high school student learns that the money supply of a country is controlled by its central bank (which is the Federal Reserve System in the United States). The implications of too much money being supplied are discussed along with the topic of cryptocurrencies.Benchmark Students will know that: Students will use this knowledge to: 13.E.1 Money is anything widely accepted as final payment for goods and services.Identify objects that have been used as money throughout history. Explain why gold has often been used as money, while ice cream cones have never been used as money. 13.E.2 People consume goods and services, not paper money.Explain why having a suitcase full of money is practically useless if one finds themself stranded alone on a deserted island. 13.E.3 Money (notes, coins, or bank accounts) makes trading easier by replacing barter.Explain why it’s easier for a chef to buy a new jacket using money than it would be for them to barter with the tailor for the jacket.E: ELEMENTARY STUDENTS National Content Standards in K–12 Economics | 47 Standard 13: Money

Standard: 7

Name: Role of Government

Governments intervene in markets for a variety of economic reasons, including improving competition; providing public goods, like national defense; controlling pollution; defining and enforcing property rights; and helping those in need.

• K-5: Elementary school students learn that governments tax or borrow money to pay for goods and services that they provide to society.
• 6-8: Middle school students learn that taxes or subsidies might affect the output of goods and services.
• 9-12: High school students learn that governments pursue different economic goals and that policymaking often requires trade-offs among the goals. High schoolers are given examples of how government policies are used to encourage competitive markets, and how governments can correct for externalities or public goods. Finally, students learn that governments may pursue goals other than correcting inefficiencies, for example, redistributing income. The impact of economic policies is then examined, noting that sometimes the cost of an intervention may exceed the benefits, and those who construct policies may not be incentivized to create optimal policies.Benchmark Students will know that: Students will use this knowledge to: 7.E.1 Governments often provide certain kinds of goods and services in a market economy.Brainstorm a list of goods and services (such as police protection, upkeep of roads, parks, etc.) not usually privately produced. 7.E.2 Governments pay for the goods and services they use or provide by taxing or borrowing.Explain how a local school district would raise the money to pay for a new elementary school.E: ELEMENTARY STUDENTS

Name: Managing Risk

Standard: 6

• Students will understand that: People are exposed to personal risks that can result in lost income, assets, health, life, or identity. They can choose to manage those risks by accepting, reducing, or transferring them to others. When people transfer risk by buying insurance, they pay money now in return for the insurer covering some or all financial losses that may occur in the future. Common types of insurance include health insurance, life insurance, and homeowner’s or renter’s insurance. The cost of insurance is related to the size of the potential loss, the likelihood that the loss event will happen, and the risk characteristics of the asset or person being insured. Identity theft is a growing concern for consumers and business. Stolen personal information can result in financial losses and fraudulent credit charges. The risk of identity theft can be minimized by carefully guarding personal financial information.