Standards for Who Bears the Burden When a Tax Is Imposed on a Good?

Name: Role of Government and Market Failure

Standard: 16

• Students will understand that: There is an economic role for government in a market economy whenever the benefits of a government policy outweigh its costs. Governments often provide for national defense, address environmental concerns, define and protect property rights, and attempt to make markets more competitive. Most government policies also have direct or indirect effects on people's incomes.
• Students will be able to use this knowledge to: Identify and evaluate the benefits and costs of alternative public policies, and assess who enjoys the benefits and who bears the costs.

Name: Role of Prices

Standard: 8

• Students will understand that: Prices send signals and provide incentives to buyers and sellers. When supply or demand changes, market prices adjust, affecting incentives.
• Students will be able to use this knowledge to: Predict how changes in factors such as consumers' tastes or producers' technology affect prices.