Standards for Private: Making Cents out of Centimes

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: 4

Name: Markets

The interaction between buyers and sellers determines the market price and allocates scarce goods and services. Buyers and sellers make decisions based, in part, on market prices.

• K-5: Elementary school students learn that markets determine the prices of goods and how people change their behavior when prices change.
• 6-8: In middle school, students are formally introduced to the concepts of supply and demand and what is meant by an equilibrium price. They are presented with a situation where the market price is not in equilibrium and learn how equilibrium is restored. Finally, they discover that a change in the price of one good can impact the market for another good.
• 9-12: In high school, students learn about shortages and surpluses, and how supply and demand changes impact the market price. Finally, the concept of the price elasticity of demand is introduced.Benchmark Students will know that: Students will use this knowledge to: 4.E.1 A market exists whenever buyers and sellers exchange goods or services.Identify items they purchased in online marketplaces and at a local market (e.g., grocery store or school fair) and describe the differences between digital and physical markets. 4.E.2 A price is what people pay when they buy a good or service, and what they receive when they sell a good or service.Identify one of their favorite items purchased with their own money and what price they paid, or what they charged when working for others (e.g., chores around the house, yard work for a neighbor). 4.E.3 Higher prices for a good or service provide incentives for buyers to purchase less of that good or service, and for producers to make or sell more of it. Lower prices for a good or service provide incentives for buyers to purchase more of that good or service, and for producers to make or sell less of it.Provide an example of a good that they did not purchase (or their parents or caregivers would not purchase for them) because it was too expensive and predict how low the price would have to drop before they would be able to buy it. Decide if they would take out the garbage, babysit a sibling, or do some other chore for $1 and, if not, decide at what price they would be willing to do the chore.E: ELEMENTARY STUDENTS National Content Standards in K–12 Economics | 20 Standard 4: Markets

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