Using examples, explain how scarcity, choice, opportunity costs, and incentives affect decisions made by households, businesses, and governments.

Weigh marginal benefits and marginal costs in decision making.

Use the laws of supply and demand to explain household and business behavior. (e.g., determinants of demand and determinants of supply)

Analyze how prices change through the interaction of buyers and sellers in a market including the role of supply, demand, equilibrium, elasticity, and explain how incentives (monetary and non-monetary) affect choices of households and economic organizations.

Analyze and describe how the global economy has changed the interaction of buyers and sellers.

Compare and contrast the characteristics, advantages, and disadvantages of traditional, command, market, and mixed economic systems. (e.g. GDP, inflation, unemployment.)

Using a number of indicators, such as GDP, per capita GDP, unemployment rates, and consumer price index, analyze the current and future state of an economy.

Evaluate the three macroeconomic goals of an economic system (stable prices, low unemployment, and economic growth).

Analyze the ways in which local and state governments generate revenue and use that revenue to supply public services.

Evaluate the ways in which the federal government generates revenue on consumption, income, and wealth, and uses that revenue to supply government services and public goods, and protect property rights. (e.g., parks and highways, national defense, social security, Medicaid, Medicare.)

Analyze the consequences – intended and unintended – of using various tax and spending policies to achieve macroeconomic goals of stable prices, low unemployment, and economic growth.

Explain the roles and responsibilities of the Federal Reserve System and compare and contrast the consequences – intended and unintended – of different monetary policy actions of the Federal Reserve Board as a means to achieve macroeconomic goals of stable prices, low unemployment, and economic growth.

Assess how factors such as availability of natural resources, investments in human and physical capital, technical assistance, public attitudes and beliefs, property rights, and free trade can affect economic growth in developing nations.

Evaluate the diverse impact of trade policies of the World Trade Organization, World Bank, or International Monetary Fund on developing economies of Africa, Central America, or Asia, and on the developed economies of the United States and Western Europe.

Use the concepts of absolute and comparative advantage to explain why goods and services are produced in one nation or locale versus another.

Assess the impact of trade policies, monetary policy, exchange rates, and interest rates on domestic activity and world trade. (e.g., tariffs, quotas, export subsidies, product standards, other barriers.)

Analyze the effects on trade of a change in an exchange rate between two currencies.

Analyze and describe how the global economy has changed the interaction of buyers and sellers.

Analyze the risks and rewards of entrepreneurship and associate the functions of entrepreneurs with alleviating problems associated with scarcity.

Identify the characteristics of perfect competition, monopolistic competition, oligopoly, and monopoly market structures. (e.g. number of producers, similarity of products, barriers to entry, control over prices.)

Describe the factors that consumers may consider when purchasing a good or service, including the costs, benefits, and the role of government in obtaining the information.

Identify the incentives people have to set aside income for future consumption, and evaluate the impact of time, interest rates, and inflation upon the value of savings.

Evaluate the benefits, costs, and potential impacts of using credit to purchase goods and services.

Analyze the risks, expected rate of return, tax benefits, impact of inflation, role of government agencies, and importance of diversification when investing in financial assets.

Conduct research regarding potential income and employee benefit packages, non-income factors that may influence career choice, benefits and costs of obtaining the necessary education or technical skills, taxes a person is likely to pay, and other possible sources of income. (e.g., interest, dividends, capital appreciation, income support from the government, social security)

Assess the financial risk of lost income, assets, health, or identity, and determine if a person should accept the risk exposure, reduce risk, or transfer the risk to others by paying a fee now to avoid the possibility of a larger loss later.