Standards for An Entreduction

Standard: 5

Name: Business Decisions and Market Structure

Businesses typically make decisions to maximize profit. Competition among sellers usually lowers costs and prices for buyers. A lack of competition in some types of markets can lead to higher prices and less-favorable outcomes for buyers.

• K-5: In elementary school, students learn that businesses use resources to produce goods and services, and that buyers and sellers interact in the market. Entrepreneurship is also introduced.
• 6-8: In middle school, students learn about the idea of profit and how businesses and consumers interact. Students learn more about how businesses are legally organized and their goals. Students learn how the behavior of buyers and sellers affects market outcomes. Students then explore the costs and benefits of being an entrepreneur.
• 9-12: High school students, while they do not learn about specific market structures, investigate why competition may vary across different markets. They also learn how businesses decide how much to produce and why competition prevents businesses from influencing the market price. Students learn why some markets have less competition, with concepts such as network effects being introduced.Benchmark Students will know that: Students will use this knowledge to: 5.E.1 Producers use natural resources, human resources, and capital resources to make to make goods and services.Identify a good they can make and sell (e.g., friendship bracelets) and determine what resources they need to produce 20 units, including how many hours of labor. 5.E.2 Competition exists when there are multiple buyers and sellers of similar products.Explain whether the opening of a second vendor selling the same product at a farmers market is good for buyers, sellers, or both.

Name: Spending

Standard: 2

• Students will understand that: A budget is a plan for allocating a person’s spendable income to necessary and desired goods and services. When there is sufficient money in their budget, people may decide to give money to others, save, or invest to achieve future goals. People can often improve their financial wellbeing by making well-informed spending decisions, which includes critical evaluation of price, quality, product information, and method of payment. Individual spending decisions may be influenced by financial constraints, personal preferences, unique needs, peers, and advertising.