Standards for Private: Is Globalization a Dirty Word?

Standard: 16

Name: Growth and Fluctuations

Investment in factories, machinery, and technology, and in the health, education, and training of people can encourage economic growth and increase the standard of living in a country. Economic fluctuations, such as recessions, result in a temporary worsening of economic conditions as people have a harder time finding jobs and companies cut back or shut down production.

• 6-8: At the middle school level, students learn the importance of labor productivity in stimulating economic growth. Students learn what can improve labor productivity.
• 9-12: At the high school level, students learn about policies and institutions that could improve economic growth. They also learn about short-run fluctuations in the economy such as recessions and expansions.Benchmark Students will know that: Students will use this knowledge to: 16.M.1 Economic growth is a sustained increase in the quantity of the goods and services produced in a country.Research the real GDP of various countries and draw conclusions about the differences in economic growth between those countries. 16.M.2 Labor productivity is output per worker.Calculate the class’s average labor productivity after completing an activity (i.e., paper airplane production, solving calculations, jumping jacks, etc.). 16.M.3 One way an economy can grow over time is by increasing the number of workers. Another important way for an economy to grow over time is by increasing the output per worker.Perform a simple task such as making paper airplanes and then determine if more students engaged in the task will increase the production of the good or the workers’ productivity. 16.M.4 Workers can improve their labor productivity by using physical capital such as tools and machinery.Provide examples where using tools (an excavator to dig a hole, AI to write a summary of information) can increase the productivity of a worker. 16.M.5 Workers can improve their productivity when they learn new ideas or use better tools that help them perform more efficiently.Estimate the time required to complete tasks (solving a Rubik’s Cube, making an origami animal, or assembling a piece of furniture) with and without instructions. Analyze the differences and draw conclusions on how learning new methods and using tools can enhance workers’ productivity.M: MIDDLE SCHOOL STUDENTS National Content Standards in K–12 Economics | 56 Standard 16: Growth and Fluctuations

Standard: 9

Name: International Trade

International trade can increase the total amount of goods and services available, but these gains are not distributed equally between or within countries. Governments use trade policies such as tariffs or subsidies to change trade flows with different countries.

• K-5: Elementary school students learn what trade, exports, and imports are and how they connect countries.
• 6-8: Middle school students learn about gains from trade and how these gains might not be equally distributed. They also learn reasons why countries might decide to restrict trade.
• 9-12: High school students are formally introduced to the idea of comparative advantage and reasons countries may have a comparative advantage. The debate on globalization and regionalization is discussed. Finally, students are introduced to exchange rates and learn how a change in exchange rates affects prices of traded goods.Benchmark Students will know that: Students will use this knowledge to: 9.E.1 International trade is people and businesses in different countries buying and selling goods and services from each other, offering more choices and improving the quality of life of their people. By specializing in making certain products, countries can trade for other things they need, making everyone better off.Give real-world examples of international trade, such as Mexico selling avocados and mangoes to the United States and in return the United States selling machinery and technology to Mexico. 9.E.2 Trade makes countries more interdependent because countries rely on each other for certain goods and services.Explain how trade leads to interdependence between countries and why it is important for countries to trade with each other. 9.E.3 Exports are domestic goods and services that are sold to buyers in other countries. Imports are foreign goods and services that are purchased from sellers in other countries.Give examples of major products that are produced in the United States and exported to other countries, and identify these countries. Examine labels of products that are consumed or used daily at school or at home and compile a list of imported products and the countries from which they are imported.E: ELEMENTARY STUDENTS National Content Standards in K–12 Economics | 36 Standard 9: International Trade

Standard: 8

Name: Labor and Income

Income for most people is determined by the market value of their labor and other productive resources they sell. A worker’s wage depends on their productivity and the price of the product they produce. Many factors affect the distribution of income in an economy, including differences in educational levels, experience, and career choices, as well as discrimination and government policies.

• K-5: In elementary school, students learn that people work to earn income.
• 6-8: In middle school, students learn that income from labor depends on worker productivity and the price of the goods the worker produces. They are also introduced to ways in which other resources can generate income.
• 9-12: In high school, students explore income distribution and factors that cause differences in income levels among households.Benchmark Students will know that: Students will use this knowledge to: 8.E.1 Labor is a human resource that is used to produce goods and services.Identify different types of labor (human resources) and the goods and services they produce in their community. 8.E.2 Income is the payment people earn for work they do. People spend, save, or pay taxes with their income.Explain how people earn income and why they don’t spend all their income on buying goods and services. 8.E.3 People can earn income by exchanging their labor (physical or mental work) for wages or salaries.Interview adults about why they work and explain the reasons people have for working. Explain the difference between a wage and a salary.E: ELEMENTARY STUDENTS

Standard: 3

Name: Specialization and Exchange

Specialization and the division of labor allow people to benefit from voluntary exchange. Voluntary exchange occurs only when all participating parties expect to gain.

• K-5: Elementary students learn about the benefits of specialization and the division of labor. They understand that exchange becomes necessary when people have specialized in a skill. Barter is identified as an inefficient way to trade and how money makes trading easier is discussed in Standard 13.
• 6-8: By middle school, students are expected to understand that both buyers and sellers anticipate benefiting from exchange.
• 9-12: The high school student learns how transaction costs may limit trade. The role of markets is outlined in Standard 4.Benchmark Students will know that: Students will use this knowledge to: 3.E.1 Most people produce and consume goods and services.Give an example of a good a farmer or florist produces and a good or service they consume. 3.E.2 Economic specialization occurs when people concentrate their production on fewer varieties of goods and services than they consume.Name several adults in the school or community who specialize in the production of a good or service (plumber, law enforcement officer, teacher, hair stylist, etc.) and identify other goods and services that these individuals consume but do not produce for themselves. 3.E.3 Division of labor occurs when the production of a good or service is broken down into numerous separate tasks, with different workers performing each task.Participate in a simulated assembly line and identify the separate operations and the different tasks involved. Identify examples of goods produced in the U.S. using division of labor. 3.E.4 Specialization and division of labor usually increase the productivity of workers.Work individually as a craftsperson to produce a product alone and then work as a member of a small group to produce the same product. Explain why more products usually are produced when each member of the group performs a particular task in making the good. 3.E.5 People specialize in producing what they do best and then exchange their income for goods and services they do not produce.Describe how a specialist’s life such as a long-haul truck driver, accountant, lawyer, or childcare worker would change if they were unable to exchange their income to buy goods or pay for services needed.E: ELEMENTARY STUDENTS National Content Standards in K–12 Economics | 17 Standard 3: Specialization and Exchange