Standards for The Penny Problem

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