Standards for Voters and Elections

Standard: 7

Name: Role of Government

Governments intervene in markets for a variety of economic reasons, including improving competition; providing public goods, like national defense; controlling pollution; defining and enforcing property rights; and helping those in need.

• K-5: Elementary school students learn that governments tax or borrow money to pay for goods and services that they provide to society.
• 6-8: Middle school students learn that taxes or subsidies might affect the output of goods and services.
• 9-12: High school students learn that governments pursue different economic goals and that policymaking often requires trade-offs among the goals. High schoolers are given examples of how government policies are used to encourage competitive markets, and how governments can correct for externalities or public goods. Finally, students learn that governments may pursue goals other than correcting inefficiencies, for example, redistributing income. The impact of economic policies is then examined, noting that sometimes the cost of an intervention may exceed the benefits, and those who construct policies may not be incentivized to create optimal policies.Benchmark Students will know that: Students will use this knowledge to: 7.E.1 Governments often provide certain kinds of goods and services in a market economy.Brainstorm a list of goods and services (such as police protection, upkeep of roads, parks, etc.) not usually privately produced. 7.E.2 Governments pay for the goods and services they use or provide by taxing or borrowing.Explain how a local school district would raise the money to pay for a new elementary school.E: ELEMENTARY STUDENTS

Name: Managing Risk

Standard: 6

• Students will understand that: People are exposed to personal risks that can result in lost income, assets, health, life, or identity. They can choose to manage those risks by accepting, reducing, or transferring them to others. When people transfer risk by buying insurance, they pay money now in return for the insurer covering some or all financial losses that may occur in the future. Common types of insurance include health insurance, life insurance, and homeowner’s or renter’s insurance. The cost of insurance is related to the size of the potential loss, the likelihood that the loss event will happen, and the risk characteristics of the asset or person being insured. Identity theft is a growing concern for consumers and business. Stolen personal information can result in financial losses and fraudulent credit charges. The risk of identity theft can be minimized by carefully guarding personal financial information.