Economics - Amazon Web Servicestoolboxforteachers.s3.amazonaws.com/Standards/social-studies/HS… · westward expansion and summarized the events that led to key territorial acquisitions—as

HIGH SCHOOL CORE AREA

Economics Standard ECON1 The student will demonstrate an understanding of how scarcity and choice

impact the economic activity of individuals, families, communities, and nations.

ECON1.1 Illustrate the relationship between scarcity—limited resources and unlimited human

wants—and the economic choices made by individuals, families, communities, and nations, including how families must budget their income and expenses, how people use psychological and intellectual resources to deal with scarcity, and how local political entities as well as nationstates use scarce resources to satisfy human wants.

Taxonomy Level: B 2 Understand /Conceptual Knowledge

Previous/future knowledge: In first grade (16.1, 16.2) students explained the concept of scarcity and the way it forces individuals and families to make choices about which goods and services to obtain and identify ways that families and communities cooperate and compromise in order to meet their needs and wants. In second grade (22.4, 25.3) students summarized changes that have occurred in the life of the local community over time, including changes in the use of the land and in the way that people earn their living there and recognize that people’s choices about what they buy will determine what goods and services are produced. In fourth grade (4 5.2, 45.3) students explained the motives for the exploration in the West and the push for westward expansion and summarized the events that led to key territorial acquisitions—as well as the motives for these acquisitions and the location and geographic features of the lands acquired. Also in fourth grade (45.6) students compared the experiences of different groups who migrated and settled in the West, including their reasons for migrating, their experiences on the trails and at their destinations, the cooperation and conflict between and among the different groups, and the nature of their daily lives.

In fifth grade (52.1, 52.2) students explained how aspects of the natural environment—affected travel to the West and thus the settlement of that region and illustrate the effects of settlement on the environment of the West, including changes in the physical and human systems. Fifth grade students (52.3, 52.4) also summarized how railroads affected development of the West and provided examples of conflict and cooperation between occupational and ethnic groups in the West. As well, these students (52.5) explained the social and economic effects of the westward expansion on Native Americans, including changes in federal policies, armed conflicts, opposing views concerning land ownership, and Native American displacement. Fifth grade students (5 3.3, 53.4) explained the effects of immigration and urbanization on the American economy during the Industrial Revolution, including the role of immigrants in the work force and the growth of cities, the shift from an agrarian to an industrial economy, and the rise of big business and summarize the significance of largescale immigration and the contributions of immigrants to America in the early 1900s, including the countries from which they came, the opportunities and resistance they faced when they arrived, and the cultural and economic contributions they made to this nation.

In sixth grade (61.2, 61.5) students explained the emergence of agriculture and its effect on early human communities; and explained the role of economics in the development of early civilizations, including the significance and geography of trade networks and the agriculture techniques that allowed for an economic surplus and the emergence of city centers. Also in sixth grade (6.6.2) students compared the incentives of the various European countries to explore and settle new lands.

In high school (USHC3.1, USHC3.3) students explained the impact and challenges of westward movement, including the major land acquisitions, people’s motivations for moving west, railroad construction, the displacement of Native Americans, and the its impact on the developing American character and compare economic development in different regions of the country during the early nineteenth century, including agriculture in the South, industry and finance in the North, and the development of new resources in the West. Also in high school (USHC5.2) students summarized the factors that influenced the economic growth of the United States and its emergence as an industrial power, including the abundance of natural resources; government support and protection in the form of tariffs, labor policies, and subsidies; and the expansion of international markets associated with industrialization.

Future Knowledge While no future knowledge is required, students should have a core understanding of how scarcity impacts the individual and family choices that students will make throughout their lives. As well, students must have a general understanding of personal and institutional budgeting to be informed consumers and voters.

It is essential for students to know Students must be able to define and explain examples of scarcity. Students should understand how scarcity impacts all people and all societies; it is not selective. It is essential for students to be able to demonstrate the concept of opportunity cost using a production possibilities frontier or a consumption possibilities frontier. Students must also understand the concept of increasing opportunity costs, along with an understanding of the types of tradeoffs that individuals and society may face due to scarcity.

It is not essential for students to know Students do not need to understand the details of state or national budgets. It is also not essential for students to understand how local, state, and federal governments finance their budgets and adjust these budgets in times of greater financial scarcity.

Assessment guidelines: Appropriate assessment requires students to illustrate the relationship between scarcity—limited resources and unlimited human wants—and the economic choices made by individuals, families, communities, and nations; therefore, the primary focus of assessment should be for students to model the production possibilities curve and explain how scarcity can be applied in this model. However, appropriate assessments should also require students to apply the concept of opportunity cost to novel situations and examples, including family, community, and national budgets.

Effective October 2008 Indicator ECON1.1 2 / 2


Economics

Standard ECON1 The student will demonstrate an understanding of how scarcity and choice

impact the economic activity of individuals, families, communities, and

nations.

ECON1.2 Explain the concept of opportunity costs and how individuals, families, communities,

and nations make economic decisions on that basis, including analyzing marginal

costs and marginal benefits and assessing how their choices may result in tradeoffs.

Taxonomy Level: B 2 Understand Conceptual Knowledge

Previous/future knowledge:

In first grade (16.1, 16.3) students explained the concept of scarcity and the way it forces

individuals and families to make choices about which goods and services to obtain and identified

ways that families and communities cooperate and compromise in order to meet their needs and

wants. In second grade (25.3) students recognized that people’s choices about what they buy

will determine what goods and services are produced. Fourth grade (41.1, 42.3) students

explained the political, economic, and technological factors that led to the exploration of the

New World by Spain, Portugal, and England and identified the English, Spanish, and French

colonies in North America and summarized the motivations for the settlement of these colonies,

including freedom of worship, and economic opportunity. These students (45.2, 45.6) also

explained the motives for the exploration in the West and the push for westward expansion,

including the concept of manifest destiny, economic opportunities in trade, and the availability of

rich land; and compared the experiences of different groups who migrated and settled in the

West, including their reasons for migrating, the cooperation and conflict between and among the

different groups, and the nature of their daily lives. In fifth grade (52.1, 52.3) students

explained how aspects of the natural environment—including the principal mountain ranges and

rivers, terrain, vegetation, and climate of the region—affected travel to the West and thus the

settlement of that region and summarized how railroads affected development of the West,

including their ease and inexpensiveness for travelers and their impact on trade and the natural

environment. Also in fifth grade (53.4) students summarized the significance of largescale

immigration and the contributions of immigrants to America in the early 1900s, including the

countries from which they came, the opportunities and resistance they faced when they arrived,

and the cultural and economic contributions they made to this nation.

In sixth grade (61.5) students explained the role of economics in the development of early

civilizations, including the significance and geography of trade networks and the agriculture

techniques that allowed for an economic surplus and the emergence of city centers. Students also

(66.2) compared the incentives of the various European countries to explore and settle new

lands. In eighth grade (85.4) students compared migration patterns within South Carolina and in

the United States as a whole in the late nineteenth century, including the population shift from

rural to urban areas, migration between regions of the United States, the westward expansion,

and the motivations for migration and settlement.


In United States History (USHC3.1) students explained the impact and challenges of westward

movement, including the major land acquisitions, people’s motivations for moving west, railroad

construction, the displacement of Native Americans, and the its impact on the developing

American character. United States History students (USHC5.6) also explained the influx of

immigrants into the United States in the late nineteenth century in relation to the specific

economic, political, and social changes that resulted, including the growth of cities and urban

ethnic neighborhoods, the restrictions on immigration that were imposed, and the immigrants’

responses to the urban political machines.

Future Knowledge While no future knowledge is required, students should have a basic understanding of the concept of opportunity cost and how choices impact every decision that individuals, families and

communities make. Further, understanding basic marginal analysis provides students with a

foundation to become effective decision makers by weighing the costs and benefits of every

decision they make. In the long run, teaching students to be effective and thoughtful decision

makers, allows the student to be a more informed citizen, consumer, employee, and/or business

owner.

It is essential for students to know

Students must be able to define the concept of opportunity cost and to further explain examples

of opportunity cost. It is essential that students be able to demonstrate the concept of opportunity cost using a production possibilities frontier or a consumption possibilities frontier. Students

must be able to quantify the opportunity cost illustrated on a production possibilities curve. In

addition, students must understand the concept of increasing opportunity costs, along with an

understanding of the types of tradeoffs that individuals and society may face. Students must be

able to explain simple examples of personal or societal increasing opportunity cost.

It is also essential that students be able to define and provide simple personal examples of the

concept of marginal benefit and marginal cost. Students must be able to quantify personal or

societal examples of marginal benefit and marginal cost. Students should also be able to explain

the decision making process that is used when reviewing opportunity cost and weighing the

marginal benefit and marginal cost of any decision.

It is not essential for students to know Students do not need to know the concept of marginal revenue. They also do not need to understand the firm’s decision making process of weighing the marginal revenue against the

marginal cost. Further, it is not essential for students to understand models of cost/benefit

analysis.

Assessment guidelines: Appropriate assessment requires students to explain the concept of opportunity cost and how individuals, families, communities and nations make economic decisions on that basis; therefore

the primary focus of assessment should be for students to model the production possibilities

curve and to explain opportunity costs as it relates to tradeoffs along the production possibilities

curve. However, appropriate assessments should also require students to apply the concept of


marginal benefit and marginal cost to individual and family decision making to further highlight

the opportunity cost concept.

Effective October 2008 Indicator ECON-1.2 3/3


Economics

Standard ECON1 The student will demonstrate an understanding of how scarcity and choice

impact the economic activity of individuals, families, communities, and

nations.

ECON1.3 Compare the four key factors of production—land, labor, capital, and

entrepreneurship—and explain how they are used, including the specialization and

division of labor that permits efficient use of scarce resources.



In Kindergarten (K6.3) students matched descriptions of work to the names of jobs in the school

and local community, in the past and present, including jobs related to safety. In first grade (1

2.2) students compared the ways that people use land and natural resources in different settings

across the world, including the conservation of natural resources and the actions that may harm

the environment. In second grade (23.3, 22.4) students summarized the roles of various

workers in the community, including those who hold government jobs there; and summarized

changes that have occurred in the life of the local community over time, including changes in the

use of the land and in the way that people earn their living there. Second grade students (25.4)

also identified the relationships between trade and resources both within and among

communities, including natural, human, and capital resources. In fifth grade (56.2, 56.3)

students explained how humans change the physical environment of regions and the

consequences of such changes, including use of natural resources and the expansion of

transportation systems; and explained how technological innovations have changed daily life in

the United States since the early 1990s, including changes in the economy and the culture that

were brought about by computers, electronics, satellites, and mass communication systems.

In sixth grade (61.2, 61.3) students explained the emergence of agriculture and its effect on

early human communities, including the impact of irrigation techniques and the domestication of

plants and animals and use maps, globes, and models in explaining the role of the natural

environment in shaping early civilizations, including the role of the river systems; the

relationship of landforms, climate, and natural resources to trade and other economic activities

and trade; and the ways that different human communities adapted to the environment.

Sixth grade (61.5) students also explained the role of economics in the development of early


techniques that allowed for an economic surplus and the emergence of city centers. In seventh

grade (73.5) students explained the impact of the new technology that emerged during the

Industrial Revolution, including changes that promoted the industrialization of textile production

in England and the impact of interchangeable parts and mass production. Also in seventh grade

(77.2, 77.3) students explained the significance and impact of the information, technological,

and communications revolutions, including the role of television, satellites, computers, and the

Internet; and explain global influences on the environment, including the effects of increases in


population, the growth of cities, and efforts by citizens and governments to protect the natural

environment. Seventh grade students (77.5, 77.7) compared the social, economic, and political

opportunities for women in various nations and societies around the world, including those in

developing and industrialized nations and within societies dominated by particular religions and

summarize the dangers to the natural environment that are posed by population growth,

urbanization, and industrialization. In eighth grade (81.1, 81.6) students summarized the

culture, political systems, and daily life of the Native Americans of the Eastern Woodlands,

including their methods of hunting and farming, their use of natural resources and geographic

features, and explained how South Carolinians used natural, human, and political resources to

gain economic prosperity, including rice planting, Eliza Lucas Pinckney and indigo planting, the

slave trade, and the practice of mercantilism. Eighth grade students (83.1, 85.4) also explained

the importance of agriculture in antebellum South Carolina, including plantation life, slavery,

and the impact of the cotton gin and compare migration patterns within South Carolina and in the

United States as a whole in the late nineteenth century, including the population shift from rural

to urban areas, migration between regions of the United States, the westward expansion, and the

motivations for migration and settlement.

In high school (USHC5.2, USHC5.3) students summarized the factors that influenced the

economic growth of the United States and its emergence as an industrial power, including the

abundance of natural resources; government support and protection in the form of tariffs, labor

policies, and subsidies; and the expansion of international markets associated with

industrialization and explain the transformation of America from an agrarian to an industrial

economy, including the effects of mechanized farming, the role of American farmers in facing

economic problems, and the rise of the Populist movement. Students (USHC5.6) also explained

the influx of immigrants into the United States in the late nineteenth century in relation to the

specific economic, political, and social changes that resulted, including the growth of cities and

urban ethnic neighborhoods, the restrictions on immigration that were imposed, and the

immigrants’ responses to the urban political machines.

Future Knowledge

While no future knowledge is required, students should have a basic knowledge of the key

resources used in the production of any good or service. With this knowledge students will be

better and more informed consumers, as they will understand the types of resources used in the

production process and how the price of these inputs can impact the cost of a good or service. As

well, students with this knowledge will have a better understanding of the importance of labor, or

human capital, in the production process. In the longrun, understanding the role of labor as a

key factor of production enables students to be more empowered employees and/or

knowledgeable business owners.


Students must be able to define and give examples of the four main factors of production.

Students should be able to give examples of the kinds of resources used in different production

settings. For example, students should understand the types of resources necessary to operate and

run a McDonald’s. It is essential that students understand how scarcity impacts resource

availability and production. They should have an understanding of the relative nature of resource

scarcity.


Students should also be able to define and explain the concept of specialization. It is essential

that students be able to provide appropriate examples of specialization. Students should

understand that specialization allows for a more efficient use of resources. Students should

generally understand the role of specialization in trade and globalization.

It is not essential for students to know

It is not essential that students know comparative advantage or absolute advantage examples. As

well, students do not need to be able to compare resource use in the United States with that of

other nations. Students do not need to know detailed examples of scarce and abundant resources

in nations around the world, even though a few examples of this nature could be useful.

Assessment guidelines:

Appropriate assessment requires students to compare the four key factors of production—land,

labor, capital, and entrepreneurship; therefore the primary focus of this assessment should be to

compare and contrast the use and importance of each of the factors of production. However,

appropriate assessments should also require students to classify how these resources are used in

different production situations.



Economics

Standard ECON2 The student will demonstrate an understanding of markets and the role of supply and demand in determining price and resource allocation.

ECON2.1 Explain the law of supply and demand, including the relationships of critical

determinants (e.g., consumer income, tastes, and preferences; technology; the price of inputs) and the effects of change on equilibrium, price, and quantity



In first grade (16.4) students recognized the roles of producers and consumers and the ways in which

they are interdependent. In second grade (25.1, 25.2) students identified examples of markets and price in the local community, explained the roles of buyers and sellers in creating markets and pricing, and summarized the concept of supply and demand and explained its effect on price. Also in second grade (25.3) students recognized that people’s choices about what they buy will determine what goods and services are produced.

In third grade (35.1, 35.3) students summarized developments in industry and technology in South Carolina in the late nineteenth century and the twentieth century; and summarized the changes in South Carolina’s economy in the twentieth century, including the rise and fall of the cotton/textile markets and

the development of tourism and other industries. Second grade students (35.4, 35.5) also explained the impact and the causes of emigration from South Carolina and internal migration from the rural areas to the cities, including unemployment, poor sanitation and transportation services, and the lack of electricity and other modern conveniences in rural locations; and explained the effects of the Great Depression and the New Deal on daily life in South Carolina, including the widespread poverty and unemployment and the role of the Civilian Conservation Corps.

In the fifth grade (52.3, 53.1) students summarized how railroads affected development of the West, including their ease and inexpensiveness for travelers and their impact on trade and the natural environment and explained how the Industrial Revolution was furthered by new inventions and technologies, including new methods of mass production and transportation and the invention of the light

bulb, the telegraph, and the telephone. Fifth grade students (53.3, 54.2) also explained the effects of immigration and urbanization on the American economy during the Industrial Revolution, including the role of immigrants in the work force and the growth of cities, the shift from an agrarian to an industrial economy, and the rise of big business; and summarized the stock market crash of 1929 and the Great Depression, including economic weakness, unemployment, failed banks and businesses, and migration from rural areas. As well, fifth grade students (55.2) summarized changes in the United States economy following World War II, including the expanding job market and service industry, consumerism, and new technology.

In seventh grade (73.5) students explained the impact of the new technology that emerged during the Industrial Revolution, including changes that promoted the industrialization of textile production in

England and the impact of interchangeable parts and mass production. While in eight grade (87.1, 87.2)


students summarized the significant aspects of the economic growth experienced by South Carolina during and following World War II and provided examples of the expanding role of tourism in South Carolina’s economy, including the growth of resorts and development along the coast and the expanding

transportation systems that allowed greater access to recreational sites. Students (87.3, 87.5) also explained how the increased industrialization and mechanization, the reduction in cotton production, and the emigration of African Americans both resulted from and contributed to agricultural decline in South Carolina; and explained the economic impact of twentieth century events on South Carolina, including the opening and closing of military bases, the development of industries, the influx of new citizens, and the expansion of port facilities.

Future Knowledge While no future knowledge is required students must have a general understanding of the market economy in order to be informed, rational consumers throughout their lives. Students will live and work in a marketbased economy and must therefore, have a general understanding of key characteristics of the market forces of supply and demand.

It is essential for students to know Students must know the definitions of supply, demand, price, quantity supplied, and quantity demanded. It is also essential that students know examples of suppliers and understand that consumers demand goods and services. Students should clearly understand what happens to supply when things like technology or wages change. For example, what happens to the supply and price of a good or service if the technology used to produce it increases or the wages of the workers increase?

Students should also understand what happens to demand when things like consumer income or trends change. Students will understand the graphical illustration of both supply and demand. They should be able to identify the equilibrium price and quantity and further to identify what happens to price when a market is not in equilibrium. It is also essential that students should understand the determinants of demand and supply. Students should further understand the kinds of movements in the supply or demand curve that these determinants cause.

It is not essential for students to know Students do not need to understand what happens with a quota, price ceiling or price floor. It is also not essential for students to understand the precise impacts of taxation or government regulation on supply and demand.

Assessment guidelines: Appropriate assessment requires students to explain the law of supply and demand; therefore, the primary focus of assessment should for students to summarize the market forces of the law of supply and the law of demand and further, to classify the various ways that price and quantity are affected by changes in supply and demand. In addition, appropriate assessments should also require students to recall how supply and demand are impacted by changes in the determinants of demand and supply.


Economics


ECON2.2 Explain the nature and role of competition in a market economy, including the

determination of market price through competition among buyers and sellers and the conditions that make industries more or less competitive, such as the effect of domestic and international competition and the quality, quantity, and price of products.


Previous/future knowledge: In first grade (16.2) students explained methods for obtaining goods and services, including buying with money and bartering. Later, in second grade (25.1, 25.4) students identified examples of markets and price in the local community, explained the roles of buyers and sellers in creating markets and pricing, and identified the relationships between trade and resources both within and among communities, including natural, human, and capital resources.

In third grade (35.5) students explained the effects of the Great Depression and the New Deal on daily life in South Carolina, including the widespread poverty and unemployment and the role of the Civilian Conservation Corps. Later, in fifth grade (54.7) students explained the effects of increasing worldwide economic interdependence following World War II, including how interdependence between and among nations and regions affected economic productivity, politics, and world trade.

In middle school (71.6, 77.6) students explained the emergence of capitalism, including the significance of mercantilism, a developing market economy, an expanding international trade, and the rise of the middle class and explained the impact of increasing global economic interdependence in the late twentieth century and the early twentyfirst century, including the significance of global communication, labor demands, and migration; the European Economic Community (EEC) and other trade agreements; and the oil crisis of the 1970s.

Future Knowledge While no future knowledge is required, students must have a general understanding of the forces of competition in determining market price and quantity. A general understanding of international and domestic competitive forces provides a foundation of knowledge to ensure both informed consumer and voter behavior.

It is essential for students to know Students must be able to define the primary characteristics of perfect competition. Students should understand the relationship between domestic and international trade and increased competition. Students should also understand the impact of increased trade, and thus increased competition, on the variety, price and quality of goods and services in a market.


Students should be able to compare the model of perfect competition to a model that does not have these characteristics. The model of monopoly behavior is an appropriate comparison. It is also essential that students should understand examples of markets that closely approximate perfect competition; examples of those that do not and be able to explain why. Many agricultural markets are appropriate comparisons.

It is not essential for students to know Students do not need to know the primary characteristics of oligopolies, monopolistic competition or monopsony markets. It is also not essential for students to know the antitrust regulations that encourage competition and discourage monopoly power.

Assessment guidelines: Appropriate assessment requires students to explain the effects of competition in a market economy; therefore, the primary focus of assessment should be for students to classify the primary characteristics of competition and explain the effects of competition on price, the quality and quantity goods, and international trade. Appropriate assessments should also require students to compare and contrast competitive industries against those that are less competitive and to understand the economic outcomes of reduced competition.


Economics


ECON2.3 Explain economic incentives that lead to the efficient use of resources, including

monetary and nonmonetary incentives, the ways in which people change their behavior in response to incentives, the relationship of incentives to the laws of supply and demand, and the role of private property as an incentive in conserving and improving scarce resources.


Previous/future knowledge: In first grade (12.2) students compared the ways that people use land and natural resources in different settings across the world, including the conservation of natural resources and the actions that may harm the environment. In second grade (25.4) students identified the relationships between trade and resources both within and among communities, including natural, human, and capital resources. Later, in third grade (35.1, 35.3) students summarized developments in industry and technology in South Carolina in the late nineteenth century and the twentieth century; and summarized the changes in South Carolina’s economy in the twentieth century, including the rise and fall of the cotton/textile markets and the development of tourism and other industries. Third grade students (35.4, 35.5) also explained the impact and the causes of emigration from South Carolina and internal migration from the rural areas to the cities, including unemployment, poor sanitation and transportation services, and the lack of electricity and other modern conveniences in rural locations; and explained the effects of the Great Depression and the New Deal on daily life in South Carolina, including the widespread poverty and unemployment and the role of the Civilian Conservation Corps.

In fourth grade (41.1, 41.2) students explained the political, economic, and technological factors that led to the exploration of the New World by Spain, Portugal, and England and summarized the motivation and accomplishments of the Vikings and the Portuguese, Spanish, English, and French explorers. Also in fourth grade (42.3, 45.2) students identified the English, Spanish, and French colonies in North America and summarized the motivations for the settlement of these colonies, including freedom of worship, and economic opportunity; and explain the motives for the exploration in the West and the push for westward expansion, including the concept of manifest destiny, economic opportunities in trade, and the availability of rich land. Later, in fifth grade (53.1, 53.3) students explain how the Industrial Revolution was furthered by new inventions and technologies, including new methods of mass production and transportation and the invention of the light bulb, the telegraph, and the telephone; and explain the effects of immigration and urbanization on the American economy during the Industrial Revolution, including the role of immigrants in the work force and the growth of cities, the shift from an agrarian to an industrial economy, and the rise of big business. Fifth grade students (5 3.4, 53.5) also will summarize the significance of largescale immigration and the contributions of immigrants to America in the early 1900s and explain how building cities and industries led to progressive reforms, including labor reforms, business reforms, and Prohibition. Also in fifth grade (56.2, 56.3) students explain how humans change the physical environment of regions


and the consequences of such changes, including use of natural resources and the expansion of transportation systems; and explain how technological innovations have changed daily life in the United States since the early 1990s, including changes in the economy and the culture that were brought about by computers, electronics, satellites, and mass communication systems. As well, fifth grade students (56.4) identify examples of cultural exchange between the United States and other countries that illustrate the importance of popular culture and the influence of American popular culture in other places in the world, including music, fashion, food, and movies.

In seventh grade (77.3) students explain global influences on the environment, including the effects of increases in population, the growth of cities, and efforts by citizens and governments to protect the natural environment.

In High School (USHC 5.1, USHC5.2) students will summarize developments in business and industry, including the ascent of new industries, the rise of corporations through monopolies and corporate mergers; and summarize the factors that influenced the economic growth of the United States and its emergence as an industrial power. United States History students (USHC5.3, USHC 5.4) will also explain the transformation of America from an agrarian to an industrial economy and analyze the rise of the labor movement. These students (USHC 5.5, USHC5.6) will later explain the causes and effects of urbanization in late nineteenthcentury America; and explain the influx of immigrants into the United States in the late nineteenth century in relation to the specific economic, political, and social changes that resulted.

Future Knowledge While no future knowledge is required students must have a basic understanding of incentives and how incentives impact individual and social outcomes. An understanding of resource use and the nature of incentives provides individuals with important knowledge that will impact future choices and decisions that individuals will make throughout their lives.

It is essential for students to know Students must know the four major categories of resource use and understand examples of each type of resource. Students must understand how these resources are used in the production process of any good or service. Students should further understand examples of resource scarcity; endangered species, water, land etc. It is also essential for students to understand the incentives of resource use; particularly that private property, in general, encourages conservation and improvement. Examples of conservation versus improper resource use are important.

Students should also understand the difference between positive and negative incentives. It is essential for students to know examples of how individuals and groups respond to incentives and how incentives are inherent in the market structure, especially within the role of price and the profit motive.

It is not essential for students to know Students do not need to understand positive and negative externalities. It is also not essential for students to be able to calculate or graphically illustrate producer and consumer surplus.


Assessment guidelines: Appropriate assessment requires students to explain the factors of production (resources) utilized in the production of goods and services; therefore, the primary focus of assessment should be for students to explain and exemplify the factors of production used in our economy. However, appropriate assessments should also require students to recall the role of incentives in a market economy and to further clarify the relationship between incentives and the law of supply and demand, private property, and the use and conservation of resources.


Economics


ECON2.4 Explain the effect of shortages and surpluses in a market economy, including the

effect of price controls (ceilings and floors) in causing shortages or surpluses, changes in the price of products as a result of surplus or shortage, and market mechanisms for eliminating shortages and surpluses and achieving market equilibrium.


Previous/future knowledge: In second grade (25.1, 25.2) students identified examples of markets and price in the local community and summarized the concept of supply and demand and explained its effect on price. In third grade (34.5, 35.5) students summarized the effects of the Civil War on the daily lives of people of different classes in South Carolina and later, explained the effects of the Great Depression and the New Deal on daily life in South Carolina, including the widespread poverty and unemployment and the role of the Civilian Conservation Corps.

In fifth grade (53.1, 53.3) students explained how the Industrial Revolution was furthered by new inventions and technologies, including new methods of mass production and transportation and further explained the effects of immigration and urbanization on the American economy during the Industrial Revolution, including the role of immigrants in the work force and the growth of cities, the shift from an agrarian to an industrial economy, and the rise of big business. Also in fifth grade (54.2, 54.3) students summarized the stock market crash of 1929 and the Great Depression, including economic weakness, unemployment, failed banks and businesses, and migration from rural areas and explain the immediate and lasting effect on American workers caused by innovations of the New Deal, including the Social Security Act, the Federal Deposit Insurance Corporation, and the Civilian Conservation Corps.

In middle school (83.6, 85.5) students compared the effects of the Civil War on daily life in South Carolina and summarized the human, agricultural, and economic costs of natural disasters and wars that occurred in South Carolina or involved South Carolinians in the late nineteenth century. Eighth grade students (86.5) also explained the effects of the Great Depression and the lasting impact of New Deal programs on South Carolina, including the Rural Electrification Act, the Civilian Conservation Corps, Works Progress Administration and Public Works Administration.

In high school (USHC 7.4, 7.5) students explained the causes and effects of the stock market crash of 1929 and the Great Depression and compared the first and second New Deals as responses to the economic bust of the Great Depression.


Future Knowledge While no future knowledge is required, students should have a basic understanding of and be able to identify examples of market failure. In order to be informed voters and consumers students should have an adequate understanding of methods of government intervention, like price ceilings and price floors, as well as the possible outcomes of this kind of government intervention. Further, when faced with a shortage or surplus in their own lives, it is important for students to understand basic market forces that generate, perpetuate, or can eliminate these.

It is essential for students to know Students must understand the definition of a shortage and surplus. Students must further understand the graphical illustration of a shortage and a surplus. Students should be able to explain and illustrate graphically the impact on prices and market quantity due to shortages and surpluses. Students should understand examples of shortages and surpluses.

Students should understand the definition of price ceiling and price floor and should clearly understand how these policy measures create shortages and surpluses. Examples of these policies and their outcomes would be appropriate. Students should have a clear understanding conceptually and graphically of the market mechanisms required to eliminate a shortage or surplus.

It is not essential for students to know Students do not need to know other examples of price controls beyond price ceilings and price floors. It is not essential for students to understand the policy incentives behind government intervention in the form of price ceilings and price floors.

Assessment guidelines: Appropriate assessment requires students to explain the effects of shortages and surpluses in a market economy; therefore, the primary focus of assessment should be to compare and contrast the market outcomes of shortages and surpluses. However, appropriate assessments should also require students to recall the role of price in establishing market equilibrium and to further infer the role of price and other market forces in eliminating shortages and surpluses.



Economics Standard ECON3 The student will demonstrate an understanding of the sources of income and

growth in a freeenterprise economy.

ECON3.1 Compare personal income distribution and functional income distribution, including

how distribution of income affects public policy. Taxonomy Level: B 2 Understand /Conceptual Knowledge

Previous/future knowledge: In third grade (34.1, 34.6) students compared the conditions of daily life for various classes of people in South Carolina, including the elite, the middle class, the lower class, the independent farmers, and the free and the enslaved African Americans and further, explained how the Civil War affected South Carolina’s economy, including destruction of plantations, towns, factories, and transportation systems. In fifth grade (51.4, 54.2) students compared the economic and social effects of Reconstruction on different populations, including the move from farms to factories and the change from the plantation system to sharecropping and summarized the stock market crash of 1929 and the Great Depression, including economic weakness, unemployment, failed banks and businesses, and migration from rural areas. Fifth grade students (54.3) also explained the immediate and lasting effect on American workers caused by innovations of the New Deal, including the Social Security Act, the Federal Deposit Insurance Corporation, and the Civilian Conservation Corps.

In high school (USHC3.3, USHC10.2) students compared economic development in different regions of the country during the early nineteenth century and summarized key economic issues in the United States since the fall of communist states, including recession, the national debt and deficits, legislation affecting organized labor and labor unions, immigration, and increases in economic disparity.

Future Knowledge While no future knowledge is required, students must have a basic foundation in the sources of economic growth and income in order to understand how the overall health of the United States economy may personally impact individual or family circumstances. A basic understanding of personal income distribution gives students a foundation that will allow them to better assess public policy measures that may impact their income in the future.

It is essential for students to know Students must understand that all resource categories, land, labor, capital, and entrepreneurial ability receive a share of the total income generated from a good or service. A general understanding of each resource categories income share and how this has changed throughout United States history is required.


Students must know the definition of personal income, disposable personal income, and related per capita measures. They should also understand the definition of income inequality and how this is illustrated with a Lorenz Curve. Students should further understand examples of income inequality and the possible challenges that come as a society has more inequality. It is also essential for students to have a general understanding of how income inequality impacts public policy measures. Examples of the types of programs that are utilized to reduce inequality would be appropriate.

It is not essential for students to know Students do not need to know how to calculate the income share received by each factor of production. It is also not essential for students to know how to create a Lorenz curve or the details of the many government programs that are used to minimize income inequality. As well, students do not need to know details of other nation’s income and inequality measures.

Assessment guidelines: Appropriate assessment requires students to compare personal and functional income distribution; therefore, the primary focus of assessment should be to clarify and explain personal and functional income distribution. However, appropriate assessments should also require students to exemplify and interpret a Lorenz curve exhibiting varying degrees of income inequality.



Economics Standard ECON3: The student will demonstrate an understanding of the sources of income

and growth in a freeenterprise economy. ECON3.2 Explain the role of entrepreneurs in a market economy, including the costs and

benefits of being an entrepreneur, the expectation of profit as the incentive for entrepreneurs to accept business risks, and the effect of changes in taxation and government regulation on entrepreneurial decisions.


Previous/future knowledge: In the fifth grade (53.1., 53.2) students explained how the Industrial Revolution was furthered by new inventions and technologies and identified prominent inventors and scientists of the period and summarized their inventions or discoveries, including Thomas Edison, Alexander Graham Bell, the Wright Brothers, and Albert Einstein. Also in fifth grade (54.1, 56.3) students summarized changes in daily life in the boom period of the 1920s, including the improved standard of living; the popularity of new technology; and explained how technological innovations have changed daily life in the United States since the early 1990s, including changes in the economy and the culture that were brought about by computers, electronics, satellites, and mass communication systems.

In seventh grade (73.5, 77.2) students explained the impact of the new technology that emerged during the Industrial Revolution and later, explained the significance and impact of the information, technological, and communications revolutions, including the role of television, satellites, computers, and the Internet.

In high school (USHC8.5) students explained the lasting impact of the scientific and technological developments in America after World War II, including new systems for scientific research, medical advances, improvements in agricultural technology, and resultant changes in the standard of living and demographic patterns.

Future Knowledge While no future knowledge is required, students must have a basic foundation in the fundamental characteristics of a market economy; as this is the economy they will live and work in. Students must understand the importance of the entrepreneurial process and the profit motive in motivating and providing incentives for innovation, ideas, and inventions that have and will continue to fuel economic growth across our nation.


It is essential for students to know Students must understand the definition of an entrepreneur and must be able to describe the unique role they play in the production process. Students should know examples of entrepreneurs and understand the role they play in creating and developing new markets for goods and services. They should also understand the costs and benefits of being an entrepreneur. Further, they must be able to outline the risks and incentives of being an entrepreneur. In addition, students should have a basic understanding of the impact of government policy on entrepreneurial decision making. Students should, for example, understand that an increase in corporate taxes or the minimum wage may reduce the incentives for an entrepreneur to operate.

It is not essential for students to know Students do not need to have a detailed understanding of government tax and regulation policy as it relates to entrepreneurial activity. Students do not need to understand financial or accounting rules related to business activity or entrepreneurs, specifically. As well, students do not need to understand the role of the entrepreneur in other economic systems.

Assessment guidelines: Appropriate assessment requires students to explain the role of the entrepreneur in a market economy; therefore, the primary focus of assessment should be summarizing the role of the entrepreneur in a market economy and may also require students to compare the costs and benefits of an entrepreneur in a market economy, with particular emphasis on clarifying the risks associated with entrepreneurial activity.



Economics

Standard ECON3: The student will demonstrate an understanding of the sources of income

and growth in a freeenterprise economy.

ECON3.3 Explain the causes and effects of economic growth, including the relationship

between investment in human resources and in real capital, the alleviation of

poverty, the increase in standards of living, and the creation of new employment

opportunities



In Kindergarten (K.1.2) students explained how changes in modes of communication and

transportation have changed the way that families live and work, including email and the

telephone as opposed to letters and messengers for communication and the automobile as

opposed to the horse for transportation. Kindergarten (K6.1, K6.1) students also classified

several community businesses according to the goods and services they provide and matched

descriptions of work to the names of jobs in the school and local community, in the past and

present, including jobs related to safety. In second grade (25.4) students identified the

relationships between trade and resources both within and among communities, including

natural, human, and capital resources. In third grade (3.4.1, 3.4.5) students compared the

conditions of daily life for various classes of people in South Carolina and summarized the

effects of the Civil War on the daily lives of people of different classes in South Carolina. Also

in third grade (3.4.6, 3.4.7) students explained how the Civil War affected South Carolina’s

economy, including destruction of plantations, towns, factories, and transportation systems and

summarize the effects of Reconstruction in South Carolina, including the development of public

education, racial advancements and tensions, and economic changes.

In fifth grade (52.3, 52.5) students summarized how railroads affected development of the

West, including their ease and inexpensiveness for travelers and their impact on trade and the

natural environment and explained the social and economic effects of the westward expansion on

Native Americans. Also in fifth grade (53.1, 53.3) students explained how the Industrial

Revolution was furthered by new inventions and technologies; and explained the effects of

immigration and urbanization on the American economy during the Industrial Revolution,

including the role of immigrants in the work force and the growth of cities, the shift from an

agrarian to an industrial economy, and the rise of big business. Fifth grade (54.1, 54.3) students

also summarized changes in daily life in the boom period of the 1920s, including the improved

standard of living; and the popularity of new technology such as automobiles, airplanes, radio,

and movies; and explained the immediate and lasting effect on American workers caused by

innovations of the New Deal, including the Social Security Act, the Federal Deposit Insurance

Corporation, and the Civilian Conservation Corps. As well, students (54.7, 55.2) explained the

effects of increasing worldwide economic interdependence following World War II, including

how interdependence between and among nations and regions affected economic productivity,


politics, and world trade and summarized changes in the United States economy following World

War II, including the expanding job market and service industry, consumerism, and new

technology.

In seventh grade (71.3, 71.6) students compared how European nations exercised political and

economic influence differently in the Americas and explained the emergence of capitalism,

including the significance of mercantilism, a developing market economy, an expanding

international trade, and the rise of the middle class. Also in seventh grade (73.4, 73.5), students

explained the causes and course of the Industrial Revolution in Europe, Japan, and the United

States, including the impact of the growth of population and the ruraltourban migration, the

changes in the organization of work and labor; and explained the impact of the new technology

that emerged during the Industrial Revolution, including changes that promoted the

industrialization of textile production in England and the impact of interchangeable parts and

mass production.

Seventh grade students (76.1, 77.1) also summarized the political and economic transformation

of Western and Eastern Europe after World War II and explained the significance and impact of

the information, technological, and communications revolutions, including the role of television,

satellites, computers, and the Internet.

In eighth grade (85.1, 85.6) students summarized the political, economic, and social conditions

in South Carolina following the end of Reconstruction and explained the significance that the

increased immigration into the United States in the late nineteenth century had for the state of

South Carolina, including cultural and economic contributions of immigrants, and opportunities

and struggles experienced by immigrants. Eighth grade students (86.2, 86.3) explained the

impact of World War I on South Carolina, including the building of new military bases and the

economic impact of emigration to industrial jobs in the North and summarize the political, social,

and economic situation in South Carolina following World War I, including progress in suffrage

for women, improvements in daily life in urban and rural areas, and changes in agriculture and

industry. As well, eighth grade students (86.5, 87.2) explained the effects of the Great

Depression and the lasting impact of New Deal programs on South Carolina and provided

examples of the expanding role of tourism in South Carolina’s economy, including the growth of

resorts and development along the coast and the expanding transportation systems that allowed

greater access to recreational sites.

In Global Studies (GS2.3, GS2.6) students summarized the economic, geographic, and social

influences of transSaharan trade on Africa and analyzed the social, political, and economic

upheaval and recovery that occurred in Europe during the Middle Ages, including the plague and

the subsequent population decline, the predominance of religion and the impact of the Crusades,

and the increasing interregional trade. Global Studies students (GS4.2, GS4.4) explained the

economic and cultural impact of European involvement on other continents during the era of

European expansion; and explained the causes and effects of political, social, and economic

transformation in Europe in the nineteenth century, including the significance of nationalism, the

impact of industrialization for different countries, and the effects of democratization. As well,

Global Studies students (GS5.3, GS5.6) explained the impact of the Great Depression and

political responses in Germany, Britain, and the United States and exemplified the lasting impact

of World War II.


Unites States History students (USHC3.3) compared economic development in different regions

of the country during the early nineteenth century, including agriculture in the South, industry

and finance in the North, and the development of new resources in the West. These students

(USHC5.1, USHC5.2) also summarized developments in business and industry, including the

ascent of new industries, the influence of business ideologies, and the increasing availability of

consumer goods and the rising standard of living; along with summarizing the factors that

influenced the economic growth of the United States and its emergence as an industrial power,

including the abundance of natural resources; government support and protection in the form of

tariffs, labor policies, and subsidies; and the expansion of international markets associated with

industrialization. As well, United States History students (USHC5.3, USHC10.2) explained the

transformation of America from an agrarian to an industrial economy, including the effects of

mechanized farming, the role of American farmers in facing economic problems, and the rise of

the Populist movement and summarized key economic issues in the United States since the fall

of communist states, including recession, the national debt and deficits, legislation affecting

organized labor and labor unions, immigration, and increases in economic disparity.

Future Knowledge

While no future knowledge is required, students must have a basic foundation in the causes and

effects of economic growth in order to understand how the overall health of the United States

economy may personally impact individual or family circumstances. Further, understanding the

relationship between economic growth and investments in human and physical capital is critical

to understanding public policy proposals at the national, state and/or local level. Overall, a basic

foundation in the variables that can impact economic growth both positively and negatively

enables students to make more effective decisions and to be more thoughtful citizens and voters.

It is essential for students to know It is essential for students to know the definition of economic growth and have a general understanding of how it is measured. Students should know the difference between economic

growth and economic development. As well, they should have a general understanding of the

many variables; political, economic, social, and geographical, that impact economic growth.

Students must also have a general idea of the kinds of things that may hinder economic growth.

It is also essential for students to understand the general relationship between economic growth

and investment in both human capital and real physical capital. Different individual and/or

national examples of these types of investments would be appropriate. As well, students should

understand the basic relationship between a nation’s economic growth and reductions in poverty;

improvements in a nation’s standard of living; growth in the middle class; creation of new

employment opportunities, and changes in income equality measures.

It is not essential for students to know It is not essential for students to know how to calculate the rate of economic growth in the United States. Students do not have to understand historical patterns of economic growth in the United

States. It is also not essential for students to know various theories of economic development. Effective October 2008 Indicator ECON3.3 3 / 4

Assessment guidelines: Appropriate assessment requires students to explain the causes and effects of economic growth; therefore, the primary focus of assessment should be summarizing the main variables that impact

economic growth, with particular emphasis on the role of human capital, real capital, and the

creation of new employment. However, appropriate assessment should also require students to

understand and infer the relationship between economic growth and a reduction in poverty,

increases in standards of living, and a rising middle class. Effective October 2008 Indicator ECON3.3 4 / 4


Economics Standard ECON4: The student will demonstrate an understanding of personal economic

decision making to maximize the net benefits of personal income. ECON4.1 Summarize types of personal economic decisions and choices that individuals make,

including determining how to budget money; establishing short and longterm financial goals and plans related to income, saving, and spending; utilizing loans and credit cards; and considering investment options. (E)

Taxonomy Level: B 2 Understand /Conceptual Knowledge Previous/future knowledge: In Kindergarten (K6.3) students matched descriptions of work to the names of jobs in the school and local community, in the past and present, including jobs related to safety. In first grade (1 6.1, 16.3) students explained the concept of scarcity and the way it forces individuals and families to make choices about which goods and services to obtain, along with identifying ways that families and communities cooperate and compromise in order to meet their needs and wants.

In second grade (22.3, 22.4) students summarized the roles of various workers in the community and summarized changes that have occurred in the life of the local community over time, including changes in the use of the land and in the way that people earn their living there.

In fourth grade (45.2, 45.6) students explained the motives for the exploration in the West and the push for westward expansion, including the concept of manifest destiny, economic opportunities in trade, and the availability of rich land. Students also compared the experiences of different groups who migrated and settled in the West, including their reasons for migrating, their experiences on the trails and at their destinations, the cooperation and conflict between and among the different groups, and the nature of their daily lives.

Future Knowledge While no future knowledge is required, students must have a basic foundation in personal finance and basic budgeting skills. Financial fitness is a lifeskill that students must be introduced to in order to make competent, rational choices about many different personal and work related issues that they will face throughout their lives. Further, students must generally understand the role of incentives and longrun tradeoffs in their spending and saving decisions.


It is essential for students to know Students must know the definitions of both scarcity and opportunity cost. They must also understand personal examples of both. Students should also understand marginal cost/marginal benefit when applied to personal decision making and understand personal examples of this process.

In addition, students should be exposed to simple budgeting examples and understand the tradeoffs associated with saving and investing money. They should further understand the different types of consumer decisions that require both short and longterm savings. Students must also understand the basics of taking a loan. They should further understand that credit cards are one type of loan and recognize the definitions of simple and compound interest. Students must also understand the basic tradeoffs between popular investment choices like, savings accounts, CD’s, and stocks.

It is not essential for students to know Students do not need to know how to buy a car or home. They also do not need to understand the characteristics and associated risks of all investment vehicles.

Assessment guidelines: Appropriate assessment requires students to summarize the different types of personal economic decisions that individuals make; therefore, the primary focus of assessment should be to construct simple budgets to clearly understand the tradeoffs people make on a daily basis. However, appropriate assessments should also require students to compare and contrast different savings and investment options and to clarify the importance of both short and longterm savings goals.



Economics Standard ECON4: The student will demonstrate an understanding of personal economic

decision making to maximize the net benefits of personal income. ECON4.2 Explain influences on personal economic decision making and choices, including the

effect of education, career choices, and family obligations on future income; the influence of advertising on consumer choices; the risks and benefits involved in short and longterm saving and investment strategies; and the effect of taxation and interest rates on household consumption and savings. (E)

Taxonomy Level: B 2 Understand /Conceptual Knowledge Previous/future knowledge:

In Kindergarten students matched descriptions of work to the names of jobs in the school and local community, in the past and present, including jobs related to safety. In first grade (16.1, 1 6.3) students explained the concept of scarcity and the way it forces individuals and families to make choices about which goods and services to obtain, along with identifying ways that families and communities cooperate and compromise in order to meet their needs and wants.

In second grade (22.3, 22.4) students summarized the roles of various workers in the community and summarized changes that have occurred in the life of the local community over time, including changes in the use of the land and in the way that people earn their living there. As well, in third grade (3.5.4) students explained the impact and the causes of emigration from South Carolina and internal migration from the rural areas to the cities, including unemployment, poor sanitation and transportation services, and the lack of electricity and other modern conveniences in rural locations.

In fourth grade (45.2, 45.6) students explained the motives for the exploration in the West and the push for westward expansion, including the concept of manifest destiny, economic opportunities in trade, and the availability of rich land. Students also compared the experiences of different groups who migrated and settled in the West, including their reasons for migrating, their experiences on the trails and at their destinations, the cooperation and conflict between and among the different groups, and the nature of their daily lives.

As well, in high school (USHC3.1) students explained the impact and challenges of westward movement, including the major land acquisitions, people’s motivations for moving west, railroad construction, the displacement of Native Americans, and the its impact on the developing American character.


Future Knowledge While no future knowledge is required, students must have a basic foundation in rational decision making skills. Students must have an understanding of the kinds of choices they may be faced with throughout their personal, education, and work lives. Students must have a solid foundation in weighing the costs/benefits of their decisions and understand the potential consequences of their decisionmaking. Further, students must generally understand the role of tradeoffs in short and longrun decisions.

It is essential for students to know Students should clearly understand the relationship between investments in human capital and increased earnings. They should have an understanding of concrete examples of how additional education will lead to additional income. Students must also understand the tradeoffs associated with saving and investing money. They should further understand the different types of consumer decisions that require both short and longterm savings.

Students should understand the basic tradeoffs between popular investment choices like, savings accounts, CD’s, and stocks and have a general understanding of the risk/reward pyramid of investment strategies. They should also understand the basic tradeoff between consumption and savings for the individual or household. A basic understanding of the marginal propensity to consume and save would be valuable.

Students should understand the impact of taxation and interest rates on consumption and saving decisions and have a basic understanding of taxation that impacts consumer decision; sales taxes, incomes taxes, social security taxes, property taxes, etc. They should further understand the role of interest rates in impacting consumer buying decisions. For example, they should understand how interest rate changes impacts house, automotive, and education purchases

It is not essential for students to know Students do not need to know how the Federal Reserve changes the interest rate or understand additional monetary policy tools that might impact consumers. Students do not need to understand specific details of the income tax code or theories of taxation.

Assessment guidelines: The objective of this indicator is to explain the influences on personal economic decision making and choices; therefore, the primary focus of assessment should be to understand the relationship between education, career decisions, family obligations and others on future income and savings. However, appropriate assessments should also require students to recall different types of savings and investment strategies and their related risks and benefits. This assessment may also require students to further infer the relationship between taxation and interest rates on family

consumption and savings.



Economics

Standard ECON5: The student will demonstrate an understanding of the various economic

institutions of a market economy.

ECON5.1 Compare the significant characteristics of a market economy with those of traditional

and command economies, including differences in the roles of the government,

individual firms, and households in decision making; types of economic institutions;

the extent of consumer sovereignty/choice; and the role of private property rights,

competition, and the profit motive.

Taxonomy Level: B 2 Understanding/Conceptual Knowledge


In the first grade (16.1, 16.3) students explained the concept of scarcity and the way it forces

individuals and families to make choices about which goods and services to obtain and identify

ways that families and communities cooperate and compromise in order to meet their needs and

wants. First grade students (16.4) also recognized the roles of producers and consumers and the

ways in which they are interdependent. In second grade (25.1, 55.3) students identified

examples of markets and price in the local community; explained the roles of buyers and sellers

in creating markets and pricing; and recognized that people’s choices about what they buy will

determine what goods and services are produced. In third grade (35.1, 35.3) students

summarized developments in industry and technology in South Carolina in the late nineteenth

century and the twentieth century and summarized changes in South Carolina’s economy in the

twentieth century, including the rise and fall of the cotton/textile markets and the development of

tourism and other industries.

In fifth grade (53.1, 54.1) students explained how the Industrial Revolution was furthered by

new inventions and technologies and summarized changes in daily life in the boom period of the

1920s, including the improved standard of living; the popularity of new technology such as

automobiles, airplanes, radio, and movies. Also in fifth grade (55.2, 55.4) students summarized

changes in the United States economy following World War II, including the expanding job

market and service industry, consumerism, and new technology and also explain the course of

the Cold War, including differing economic and political philosophies of the Union of Soviet

Socialist Republics (USSR) and the United States, the spread of Communism, McCarthyism, and

others.

In sixth grade (61.5) students explained the role of economics in the development of early


techniques that allowed for an economic surplus and the emergence of city centers. In seventh

grade (71.6, 76.2) students explained the emergence of capitalism, including the significance of

mercantilism, a developing market economy, and summarize the events of the Cold War,

including the Soviet domination of Eastern Europe; the rise of the Communist party in China; the


building of the Berlin wall; the economic and political competition for influence in Vietnam and

Korea; and the Cuban missile crisis among others.

In high school, Global Studies (GS 4.4, GS5.5) students explained the causes and effects of

political, social, and economic transformation in Europe in the nineteenth century, including the

significance of nationalism, the impact of industrialization for different countries, and the effects

of democratization and compared the ideologies and global effects of totalitarianism,

Communism, Fascism, Nazism, and democracy in the twentieth century. Global Studies (GS6.1,

GS6.2) students also summarized the ideologies and global effects of Communism and

democracy, including the effects of totalitarianism and Communism in China and the effects of

Communism in Eastern Europe and Soviet Union and the worldwide effects of the Cold War,

including the competition for power between the United States and the Soviet Union, the

changing relationships between the Soviet Union and China, the response by popular culture, and

the collapse of the communist states.

Also in high school, United States history (USHC5.1, USHC5.2) students summarized

developments in business and industry, including the ascent of new industries, the rise of

corporations through monopolies and corporate mergers, the increasing availability of consumer

goods and the rising standard of living, the factors that influenced the economic growth of the

United States and its emergence as an industrial power, including the abundance of natural

resources; government support and protection in the form of tariffs, labor policies, and subsidies;

and the expansion of international markets associated with industrialization. Also in high school

students (USHC9.2) summarized the origins and course of the Cold War, including the

containment policy; the conflicts in Korea, Africa, and the Middle East; the Berlin Airlift and the

Berlin Wall; the Bay of Pigs and Cuban missile crisis among others.

Future Knowledge While no future knowledge is required students must have a basic foundation of knowledge on the basics of a market economy. Students will live and work in this economy throughout their

lives and thus, must understand the key characteristics and institutions that distinguish a market

economy. Throughout their lifetimes students should especially understand the role of

consumers’choice, competition, and private property rights in a market economy.


Students should understand the key differences between a market, traditional, and communist

economy. Students must have a general understanding of how these different systems organize

economic activity. In comparing these systems, students should understand the role of

consumers, government, property rights, profit, and competitive behavior, in the functioning of

these systems, with particular emphasis on the market economy. It is particularly important for

students to understand the role of government in establishing property rights – both tangible and

intangible – (physical property, patents, copyrights) and how the establishment of those rights

affect economic behavior. It is also important for students to understand key market incentives

inherent in competition and the profitmotive. Students must also have a sound foundation in the

role of the consumer and the ability of the consumer to influence market choice and outcomes in

these different economic systems.


It is not essential for students to know Students do not need to know how different governments throughout history have impacted markets and markets behavior. For example, it is not necessary for students to know how the

Greeks and Romans established property rights. As well, students do not need to know specific

examples of economic policies from communist, traditional, or market economies. Thus, they do

not need to know examples like the former Soviet Union’s 5 year plans, or Chinese examples

like the Cultural Revolution.

Assessment guidelines: Appropriate assessment requires students to compare the significant characteristics of a market economy with those of traditional and command economies; therefore, the primary focus of

assessment should by to contrast key similarities and differences in the economic organization of

command, market, and traditional economies. Appropriate assessment may also require students

to explain the importance of key market characteristics like property rights, consumer choice,

competition, and profit.



Economics

Standard ECON5: The student will demonstrate an understanding of the various economic

institutions of a market economy.

ECON5.2 Analyze the roles of and relationships among economic institutions in a market

economy, including the banking system and its interaction with business firms and

consumers, the economic circular flow model, the function of financial and securities

markets, and the impact of labor unions on the American economy.

Taxonomy Level B 4 Analyzing /Conceptual Knowledge


In Kindergarten (K6.3) students matched descriptions of work to the names of jobs in the

school and local community. In first grade (16.1, 16.4) they explained the concept of scarcity

and the way it forces individuals and families to make choices about which goods and services to

obtain and recognized the roles of producers and consumers and the ways in which they are

interdependent. In second grade (23.2, 25.1) students summarized the roles of various workers

in the community, including those who hold government jobs, and identified the roles of leaders

and officials in local government. In third grade (35.5) students explained the effects of the

Great Depression and the New Deal on daily life in South Carolina, including the widespread

poverty and unemployment and the role of the Civilian Conservation Corps. In fifth grade (53.5)

students explained how building cities and industries led to progressive reforms, including labor

reforms, business reforms, and Prohibition. Also in fifth grade (54.2, 54.3) students

summarized the stock market crash of 1929 and the Great Depression, including economic

weakness, unemployment, failed banks and businesses, and explained the immediate and lasting

effect on American workers caused by innovations of the New Deal, including the Social

Security Act, the Federal Deposit Insurance Corporation, and the Civilian Conservation Corps.

In sixth grade (61.4, 61.5) students compared the cultural, social, and political features and

contributions of civilizations in the Tigris and Euphrates, Nile, Indus, and Huang He river

valleys, including the evolution of language and writing systems, architecture, religious

traditions and forms of social order, the division or specialization of labor, and explained the

role of economics in the development of early civilizations, including the significance and

geography of trade networks and the agriculture techniques that allowed for an economic surplus

and the emergence of city centers. In seventh grade (71.6, 73.4) students explained the

emergence of capitalism, including the significance of mercantilism, a developing market

economy, an expanding international trade, the causes and course of the Industrial Revolution in

Europe, Japan, and the United States, including the reasons that England was the first nation to

industrialize, and the changes in the organization of work and labor. Also in seventh grade (7

5.3, 77.6) students explained the worldwide depression that took place in the 1930s, including

the economic crash of 1929 and political responses to the depression such as the New Deal, the

impact of increasing global economic interdependence in the late twentieth century and the early


twentyfirst century, including the significance of global communication, labor demands, and

migration. In eight grade (86.2, 87.1) students explained the impact of World War I on South

Carolina, including the building of new military bases and the economic impact of emigration to

industrial jobs in the North and summarized the significant aspects of the economic growth

experienced by South Carolina during and following World War II, including the contributions

of Governor Strom Thurmond in promoting economic growth; and the scarcity of labor unions.

In high school (USHC5.2, USHC5.4) students summarized the factors that influenced the


abundance of natural resources; labor policies; and analyzed the rise of the labor movement,

including the composition of the workforce of the country in terms of gender, race/ethnicity, and

skills; working conditions for men, women, and children; and union protests and strikes and the

government’s reactions to these forms of unrest. Also in high school (USHC7.4) students

explained the causes and effects of the stock market crash of 1929 and the Great Depression,

including the disparity in incomes, limited government regulation, stock market speculation, and

the collapse of the farm economy; wealth distribution, investment, and taxes; government

policies and the Federal Reserve System.

Future Knowledge

While no future knowledge is required students must have a basic foundation of knowledge on

the basics of a market economy. Students will live and work in this economy throughout their

lives and thus, must understand the key characteristics and institutions that distinguish a market

economy. Thus, it is especially important for students to have a basic understanding of the

United States financial system and the role of the Federal Reserve in its ability to influence

economic policy. As well, a basic understanding of labor markets and the role of labor unions

and labor movements, generally, provides students with important background knowledge in

labor markets and the forces that drive wages and benefits.


Students should be able to describe economic activity using a circular flow diagram, outlining

the basic roles of government, business, consumers, and international variables within this

system. Students should understand the flows to and from these different parties.

It is also essential that students understand the role of labor movements in generating labor

reforms and improved wages and benefits for their employees. Students must also understand the

trend towards declining labor unions as the forces of globalization push companies to seek lower

wage business environments in countries around the world. Students should understand examples

of unionization and declining union participation.

Students should also understand how stability in securities markets and financial markets

establishes a platform for economic stability. Students should be able to identify key U.S.

securities and financial markets and understand the importance of these markets to economic

growth and development.


It is not essential for students to know Students do not need to know how the Federal Reserve changes the interest rate. They also do not need to understand additional monetary policy tools that might impact consumers. As well,

students do not need to understand the specific working mechanisms of securities and financial

markets in the United States. They also do not need to understand government policy or

legislation related to securities and financial markets. Finally, students do not need to know the

history of the labor movement in the United States even though background on the kinds of

workers represented by labor unions would be useful.

Assessment guidelines: Appropriate assessment requires students to analyze the roles of and relationships among economic institutions in a market economy; therefore the primary focus of assessment should

require students to explain the links between the banking system in the United States and the

global economy, money markets, factor markets and product markets. The primary focus of

assessment should require students to identify how a change in one market affects prices in

others, with the primary emphasis being on the linkages among and between markets.



Economics

Standard ECON6: The student will demonstrate an understanding of the roles that federal,

state, and local governments play in the operation of markets in the United

States.

ECON6.1 Compare the various functions and roles of the government in the United States

economy, including providing public goods, defining and enforcing property rights,

correcting externalities and regulating markets, maintaining and promoting

competition in the market, protecting consumers’ rights, and redistributing income.

Taxonomy Level B 2 Understand /Conceptual Knowledge

Previous/future knowledge: In Kindergarten (K2.3) students identified people in the community and school who enforce the

rules that keep people safe, including crossing guards, firefighters, and police officers. In first

grade (13.3) students also identified ways that government affects the daily lives of individuals

and families in the United States, including providing public education, building roads and

highways, and promoting personal freedom and opportunity for all. In second grade (23.2, 2

3.3) students identified the roles of leaders and officials in local government, including law

enforcement and public safety officials and explain the ways that local and state governments

contribute to the federal system, including law enforcement and highway construction. In third

grade (33.4) students outlined the current structure of state government, including the branches

of government; the names of the representative bodies; and the role that cities, towns, and

counties play in this system. In fifth grade (54.3) students explained the immediate and lasting

effect on American workers caused by innovations of the New Deal, including the Social

Security Act, the Federal Deposit Insurance Corporation, and the Civilian Conservation Corps.

In eighth grade (84.1, 84.5) students explained the purposes of Reconstruction with attention

to the economic, social, political, and geographic problems facing the South and summarize the

successes and failures that occurred in South Carolina during Reconstruction. Also in eighth

grade (86.1, 86.2, 86.5) students summarized the progressive reform movement in South

Carolina; explained the impact of World War I on South Carolina; and explained the effects of

the Great Depression and the lasting impact of New Deal programs on South Carolina. Students

in eighth grade (87.1, 87.2, 87.4) also summarized the significant aspects of economic growth

experienced by South Carolina during and following World War II; provided examples of the

expanding role of tourism in South Carolina’s economy; and explained the factors that

influenced the economic opportunities of African American South Carolinians during the latter

twentieth century.

In high school (GS 6.4) students summarized the impact of economic and political

interdependence on the world, including efforts to control population growth, economic

imbalance and social inequality and efforts to address them, the significance of the world

economy for different nations, and the influence of terrorist movements on politics in various


countries. In high school U.S. History (USHC 7.4, USHC 7.5) students explained the causes and

effects of the stock market crash of 1929 and the Great Depression, including the disparity in

incomes, limited government regulation, stock market speculation, and the collapse of the farm

economy; wealth distribution, investment, and taxes; government policies and the Federal

Reserve System; and compared the first and second New Deals as responses to the economic

bust of the Great Depression. Also in high school (USHC 8.3, USHC 10.2) students summarized the impact of World War II and war mobilization on the home front, including war bond drives,

rationing, the role of women and minorities in the workforce and also summarize key economic

issues in the United States since the fall of communist states, including recession, the national

debt and deficits, legislation affecting organized labor and labor unions, immigration, and

increases in economic disparity. In U.S. government (USG 3.2) students explained the

organization and responsibilities of local and state governments, including the purposes and

functions of state constitutions; reserved and concurrent powers in the states; the relationships

among national, state, and local levels of government; and the structure and operation of South

Carolina’s government.

Future Knowledge While no future knowledge is required students must have a basic foundation of knowledge concerning the economic role of government. Students should have a basic understanding of how

and why the government provides goods and services and moreover, that the provision of these

goods and services are not free and require certain sacrifices of all citizens. A basic knowledge

of the costs and benefits of public goods provision, as well as other government market intervention, ensures that students will be wellinformed citizens and voters.

It is essential for students to know Students should be able to identify, recognize and define spillover (external) costs and benefits and how government regulates these third party costs and benefits. Students should be able to

identify graphical depictions of these externalities. It is essential that students be able to identify

examples of U.S. government regulatory intervention to correct negative externalities. They

should also be able to define and explain the characteristics of a public good and goods that are

collectively consumed. Students should be able to explain why the government is often involved

in the provision or regulation of these types of goods and services.

Students should understand the role of government in establishing property rights – both tangible

and intangible – (physical property, patents, copyrights) and how the establishment of those

rights affect economic behavior. Students should clearly understand the relationship between

property rights and private sector behavior and the desire to compete and earn profits. As well,

students should have a basic understanding of the role of government in redistributing income

through tax policy. Students should be able to define and give examples of regressive and

progressive taxation. Students should also be able to define different types of government

taxation like income tax, sales tax, and property tax. As well, students should understand the

difference between efficiency and equity and moreover, that achieving one does not mean

achieving the other.


It is not essential for students to know Students do not need to know specific laws or legal cases related to property rights or taxation

theory. Students do not need to understand elasticity of demand or income as it relates to taxation

or understand the scope of tax incidence or tax burden as it relates to taxation.

It is not essential that they know specific methods of determining the costs and benefits of public

goods provision. They also do not need to understand how to calculate the change in consumer

welfare or producer surplus from government provision of goods and services or government

regulation.

Assessment guidelines: Appropriate assessment requires students to compare the various functions and roles of the government in the United States economy; therefore, the primary focus of assessment should be

for students to explain the diverse roles that the government plays in providing goods and

services and in regulating economic behavior. However, appropriate assessment should also

require students to compare and contrast different types of taxation and methods of correcting

for negative externalities.



Economics

Standard ECON6: The student will demonstrate an understanding of the roles that federal,

state, and local governments play in the operation of markets in the United

States.

ECON6.2 Summarize major sources of government revenue, including taxation at the federal,

state, and local levels and tax revenues from personal income and payroll taxes, sales

taxes, and property taxes. (E)

Taxonomy Level: A 2 Understanding /Factual Knowledge

Previous/future knowledge: In first grade (14.2) students identified the different levels of government—local, state, and national. In second grade (23.3) students explained the ways that local and state governments

contribute to the federal system, including law enforcement and highway construction. Later, in

third grade (33.4, 35.7) students outlined the current structure of state government, including

the branches of government; the names of the representative bodies; and the role that cities,

towns, and counties play in this system and summarized the rights and responsibilities that

contemporary South Carolinians have in the schools, the community, the state, and the nation.

Fourth grade students (43.1) explained the political and economic factors leading to the

American Revolution, including the French and Indian War; British colonial policies such as the

Stamp Act, the Tea Act, and the socalled Intolerable Acts.

In sixth grade (66.2) students compared the incentives of the various European countries to

explore and settle new lands. Eighth grade students (82.1) explained the interests and roles of

South Carolinians in the events leading to the American Revolution, including the state’s

reactions to the Stamp Act and the Tea Act. Also in eighth grade (86.1) students summarized the

progressive reform movement in South Carolina, including the motivation of progressives; child

labor laws; Prohibition; improvements to roads, hospitals, and libraries; tax reforms; changes to

local government systems; and the roles of significant state governors and women’s groups.

In high school U.S. History (USHC5.2) students summarized the factors that influenced the




industrialization. United States History (USHC 7.4) students explained the causes and effects of

the stock market crash of 1929 and the Great Depression, including the disparity in incomes,

limited government regulation, stock market speculation, and the collapse of the farm economy;

wealth distribution, investment, and taxes; government policies and the Federal Reserve System;

and the effects of the Depression on human beings and the environment. Also in high school

(USHC 8.3, USHC 10.2) students summarized the impact of World War II and war mobilization

on the home front, including war bond drives, rationing, the role of women and minorities in the


workforce and also summarized key economic issues in the United States since the fall of

communist states, including recession, the national debt and deficits, legislation affecting

organized labor and labor unions, immigration, and increases in economic disparity. In U.S.

government (USG1.1) students summarized arguments for the necessity and purpose of

government and politics, including the idea that politics enables a group of people with diverse

opinions and interests to reach collective decisions, the idea that government gives people the

security they need in order to reach their full potential, and the idea that the purposes of

government include enhancing economic prosperity and providing for national security. Also in

United States government (USG 3.2), students explained the organization and responsibilities of

local and state governments, including the purposes and functions of state constitutions; reserved

and concurrent powers in the states; the relationships among national, state, and local levels of

government; and the structure and operation of South Carolina’s government. As well, United

States government students (USG5.2) summarized commonly held personal and civic

responsibilities and their significance in maintaining a democracy, including voting, serving as a

juror, obeying the law, paying taxes, and serving in the military.

Future Knowledge While no future knowledge is required students must have a basic foundation of knowledge concerning the economic role of government. As young adults, students will be faced with all

types of taxation. Thus, students should understand the different types of taxes that generate

revenue for local, state, and federal government and should moreover, have a basic

understanding of what this taxation pays for. Students should also understand that additional

goods and services provided or subsidized by the government come at a cost; either additional

taxation or reduced goods and services elsewhere. A basic knowledge of the sources and uses of

government revenue from taxation also ensures that students will be wellinformed citizens and

voters.


It is essential for students to know that various governmental entities – local, state, and federal;

receive funding largely from different sources of tax revenue. Students must also know that various governmental entities use this revenue to provide essential public services. For example,

local governments fund public services such as water, sewer, trash pickup; state governments

fund education and some highways; and the Federal government funds national defense, national

highways, and regulates airports among others.

It is essential that students be able to define different types of taxation like personal income and

payroll taxes, sales taxes, and property taxes. As well, students should know the difference

between regressive and progressive forms of taxation. Students should also know the destination

of various payroll taxes collected by employers.

It is not essential for students to know Students do not need to have a detailed understanding of government tax law nor do they need a detailed understanding of tax codes. Also, students do not need to know how to fill out personal

income tax forms. It is also not essential for students to know different theories of taxation

related to the burden of taxation and individual income elasticity. Students also do not need to

understand any of the ethical debates surrounding issues of taxation.



Appropriate assessment requires students to summarize major sources of government revenue;

therefore, the primary focus of assessment should be for students to identify different types of

taxation used to generate revenue and to clarify how this revenue is used across government

entities. Effective October 2008 Indicator ECON-6.2 3/3


Economics

Standard ECON7: The student will demonstrate an understanding of the national economy and

economic policies in the United States.

ECON7.1 Compare measures of economic health, including the gross domestic product,

consumer price indexes, personal income, and disposable income, rates of inflation

and deflation, and unemployment rates.


Previous/future knowledge: In third grade (34.6, 35.5) students explained how the Civil War affected South Carolina’s economy and the effects of the Great Depression and the New Deal on daily life in South

Carolina, including the widespread poverty and unemployment and the role of the Civilian

Conservation Corps. In fourth grade (46.1, 46.6) students compared the industrial North and

the agricultural South prior to the Civil War, including the specific nature of the economy of

each region; and explain the impact of the Civil War on the nation, including its effects on the

physical environment and on the people. In fifth grade (54.2, 54.3) students summarized the

stock market crash of 1929 and the Great Depression, including economic weakness,

unemployment, failed banks and businesses, and migration from rural areas and explain the

immediate and lasting effect on American workers caused by innovations of the New Deal,

including the Social Security Act, the Federal Deposit Insurance Corporation, and the Civilian

Conservation Corps. Also in fifth grade (55.2) students summarized changes in the United

States economy following World War II, including the expanding job market and service

industry, consumerism, and new technology.

In eighth grade (85.1) students summarized the political, economic, and social conditions in

South Carolina following the end of Reconstruction, including the agricultural depression and

struggling industrial development. Also in eighth grade (86.2, 86.5) students explained the

impact of World War I on South Carolina and the effects of the Great Depression and the lasting

impact of New Deal programs on South Carolina, including the Rural Electrification Act, the

Civilian Conservation Corps, Works Progress Administration and Public Works Administration

building projects, the Social Security Act, and the Santee Cooper electricity project.

In high school (USHC3.3) students compared economic development in different regions of the

country during the early nineteenth century, including agriculture in the South, industry and

finance in the North, and the development of new resources in the West. Also in high school

(USHC5.2) students summarized the factors that influenced the economic growth of the United

States and its emergence as an industrial power, including the abundance of natural resources;

government support and protection in the form of tariffs, labor policies, and subsidies; and the

expansion of international markets associated with industrialization. Later in U.S. History

(USHC 7.4, USHC7.5) students explained the causes and effects of the stock market crash of

1929 and the Great Depression and compare the first and second New Deals as responses to the


economic bust of the Great Depression. Students in U.S. History (USHC10.2) also summarized

key economic issues in the United States since the fall of communist states, including recession,

the national debt and deficits, legislation affecting organized labor and labor unions,

immigration, and increases in economic disparity.

Future Knowledge

While no future knowledge is required, students must have a basic understanding of

macroeconomic indicators to be informed consumers, voters, and business people. Individuals

with a basic understanding of basic economic variables like GDP, unemployment, inflation and

others will be able to make more informed personal and professional decisions throughout their

lives.

It is essential for students to know Students should be able to identify and define measures of economic health such as gross domestic product (GDP), consumer price index (CPI), personal income (PI), disposable income

(DI), the inflation Rate, and the unemployment Rate. Students should understand the main

variables that make up the GDP. They should also understand potential weaknesses of this

measurement.

Students should be able to explain the natural rate of employment and identify what constitutes

full employment. As well, students should be able to define the three main types of

unemployment and understand a simple unemployment calculation. Students should also know

the difference between nominal and real prices and how this relates to inflation.

Students should be able to define the business cycle and explain specific phases of the business

cycle over time. Students should understand how GDP, unemployment and inflation may change

as the business cycle changes.

It is not essential for students to know Students do not need to be able to compute GDP or its components measures. Students also do not need to know the difference between GDP and GNP. As well, students do not need to know

how to calculate an inflation rate. It is not essential for students to understand policy issues

related to unemployment, income, or inflation. As well, students do not need to know how the

Federal Reserve uses monetary policy to manage interest rates or concerns over inflation.


Appropriate assessment requires students to compare measures of economic health; therefore,

the primary focus of assessment should be for students to explain key macroeconomic

quantitative measurements that provide a window into the general health of the economy at a

point in time. However, appropriate assessment should focus on students understanding of

measurements like GDP, inflation, unemployment, and personal income and less on the

mechanics of computation of these variables.



Economics



ECON7.2 Explain the role of the money supply in a freemarket economy, including various

forms of the money supply in the United States and the effect of the banking system

on the money supply.



In first grade (16.2) students explained methods for obtaining goods and services, including

buying with money and bartering. In second grade (25.4) students identified the relationships

between trade and resources both within and among communities, including natural, human, and

capital resources. In fifth grade (54.2, 54.3) students summarized the stock market crash of

1929 and the Great Depression, including economic weakness, unemployment, failed banks and

businesses, and migration from rural areas and explain the immediate and lasting effect on

American workers caused by innovations of the New Deal, including the Social Security Act, the

Federal Deposit Insurance Corporation, and the Civilian Conservation Corps.

In middle school (75.3) students explained the worldwide depression that took place in the

1930s, including the economic crash of 1929 and political responses to the depression such as the

New Deal in the United States, the rise of Nazism in Germany, and the economic retrenchment

in Britain.

Later, in U.S. History (USHC 7.4, USHC 7.5) students explained the causes and effects of the

stock market crash of 1929 and the Great Depression and compare the first and second New

Deals as responses to the economic bust of the Great Depression.

Future Knowledge While no future knowledge is required, students must have a basic understanding of the role of the money supply and the Federal Reserve System. Students must have a basic foundation of

knowledge focusing on interest rates and interest rate changes, as this information will influence

their ability to buy homes, cars, start a business, and, among others, the return they receive on

investments. Thus, this knowledge allows individuals to be wellinformed consumers, business

owners, workers, and voters.


It is essential for students to know Students should understand that the FED is a quasigovernmental organization. It is a “banker’s bank” in that FED branches are owned by member banks but it is regulated, and not owned, by

the U.S. government. Students should understand the basic structure of the Federal Reserve

System; emphasizing the number of branches, their locations, and branch location economic

focus.

It is essential that students be able to identify the main tools of monetary policy used by the FED

to regulate the money supply in the US. They should further understand the difference between

expansionary and contractionary monetary policy. Students should understand the tools used and

the outcomes desired when expansionary or contractionary monetary policies are used.

Students should also understand the difference between required reserves and actual reserves and

how this impacts the ability of banks to create money through borrowing and lending. Students

should be able to explain how a fractional reserve banking system allows the creation of money

through borrowing and how changes in the reserve requirement impact the money supply. As

well, students should be able to define the money multiplier and understand the importance of

this concept for expansion of the money supply.

It is not essential for students to know Students do not need to know specifics of expansionary and contractionary policies over time. Students do not need to specifically differentiate between various monetary designations such as

M1, M2, and M3 et al. As well, students do not need to know the names of the FED Board of

Governors, even though familiarity with the FED Chairman would be helpful. Students do not

need to calculate a money multiplier but an understanding of this conceptually is important.


Appropriate assessment requires students to explain the role of the money supply in a free

market economy; therefore, the primary focus of assessment should be for students to compare and contrast expansionary and contractionary monetary policy, with particular focus on

understanding monetary policy tools and outcomes. However, appropriate assessment should

also focus on student ability to generalize the relationship between the money supply and the

banking system, with specific emphasis on explanation of a fractional reserve banking systems

ability to create “new” money.



Economics



ECON7.3 Explain the purposes and effects of fiscal and monetary policies, including the

structure and function of the Federal Reserve System and policies on unemployment,

inflation, and economic growth.


Previous knowledge

In first grade (13.3) students identified ways that government affects the daily lives of

individuals and families in the United States, including providing public education, building

roads and highways, and promoting personal freedom and opportunity for all. In second grade

(23.3) students explained the ways that local and state governments contribute to the federal system, including law enforcement and highway construction.

As well, in third grade (35.4, 35.5) students explained the impact and the causes of emigration

from South Carolina and internal migration from the rural areas to the cities; and explained the

effects of the Great Depression and the New Deal on daily life in South Carolina, including the

widespread poverty and unemployment and the role of the Civilian Conservation Corps. In fifth

grade (54.2) students summarized the stock market crash of 1929 and the Great Depression,

including economic weakness, unemployment, failed banks and businesses, and migration from

rural areas.

In middle school (75.3) students explained the worldwide depression that took place in the

1930s, including the economic crash of 1929 and political responses to the depression such as the

New Deal in the United States, the rise of Nazism in Germany, and the economic retrenchment

in Britain. As well, in eighth grade (86.5, 87.1) students explained the effects of the Great

Depression and the lasting impact of New Deal programs on South Carolina and summarizedthe

significant aspects of the economic growth experienced by South Carolina during and following

World War II.

In Global Studies (GS5.3) students explained the impact of the Great Depression and political

responses in Germany, Britain, and the United States, including Nazism, Fascism, retrenchment,

and the New Deal. Also in high school (USHC7.4) students explained the causes and effects of

the stock market crash of 1929 and the Great Depression, including the disparity in incomes,

limited government regulation, stock market speculation, and the collapse of the farm economy;

wealth distribution, investment, and taxes; government policies and the Federal Reserve System;

and the effects of the Depression on human beings and the environment. Students (USHC7.5)

also compared the first and second New Deals as responses to the economic bust of the Great

Depression, including the rights of women and minorities in the workplace and the successes,


controversies, and failures of recovery and reform measures such as the labor movement. U.S.

History students (USHC10.2) also summarized key economic issues in the United States since

the fall of communist states, including recession, the national debt and deficits, legislation

affecting organized labor and labor unions, immigration, and increases in economic disparity.

U.S. Government students (USG1.1) will summarize arguments for the necessity and purpose of

government and politics, including the idea that politics enables a group of people with diverse

opinions and interests to reach collective decisions, the idea that government gives people the

security they need in order to reach their full potential, and the idea that the purposes of

government include enhancing economic prosperity and providing for national security.

Future Knowledge While no future knowledge is required, students should have a basic understanding of the role of the government in promoting economic stability. In order to be effective consumers, workers,

and voters students should have a basic understanding of key macroeconomics measurements

like unemployment, inflation, and GDP growth. Students should also have general information

about the kinds of policy tools that the government has available to manage the economy. This

information will provide students with appropriate knowledge to be wellinformed citizens and

decisionmakers.


Students should be able to define monetary and fiscal policy and explain the basic difference in

these policy approaches. Students should have a basic understanding of the policy tools available

with these two different approaches. They should understand the intended results of these

different policy actions on indicators like unemployment, inflation, and economic growth.

Students should be able to relate business cycle activity to fiscal policy actions. Further, students

should understand how the actions of the FED affect the growth of the economy in the United

States.


Students do not need to know examples of fiscal and monetary policy actions over time. They

also do not need to understand the legislative process for specific fiscal policy actions. It is not

essential for students to know specific examples of FED policy action and the resulting impact

on the economy.

Assessment guidelines

Appropriate assessment requires students to explain the purposes and effects of fiscal and

monetary policies; therefore, the primary focus of assessment should be for students to compare

and contrast fiscal and monetary policy tools and outcomes. However, appropriate assessment

should also focus on student ability to identify the relationship between monetary and fiscal

policy action and economic stability as measured by unemployment, inflation and GDP growth.



Economics



ECON7.4 Explain the types of goods and services that are funded with government revenues,

including national defense, road construction and repair, public safety, health care,

payments on the national debt, and education.


Previous knowledge:

In first grade (13.3, 14.2) students identified ways that government affects the daily lives of

individuals and families in the United States, including providing public education, building

roads and highways, and promoting personal freedom and opportunity for all; and identify the

different levels of government—local, state, and national. In second grade (23.3) students

explained the ways that local and state governments contribute to the federal system, including

law enforcement and highway construction. As well, in third grade (33.4, 34.7) students

outlined the current structure of state government, including the branches of government; the

names of the representative bodies; and the role that cities, towns, and counties play in this

system and summarized the effects of Reconstruction in South Carolina, including the

development of public education, racial advancements and tensions, and economic changes. In

fifth grade (54.3) students explained the immediate and lasting effect on American workers

caused by innovations of the New Deal, including the Social Security Act, the Federal Deposit

Insurance Corporation, and the Civilian Conservation Corps.

In middle school (62.3) students summarized the significant political and cultural features of the

classical Roman civilization, including its concepts of citizenship, law, and government; its

contributions to literature and the arts; and its innovations in architecture and engineering such as

roads, arches and keystones, and aqueducts. Also in sixth grade (63.4, 63.6) students explained

the influence of the Roman Catholic Church in Europe, including its role in spreading

Christianity and the fact that monasteries affected education and the arts by founding universities

and preserving ancient language and learning; and also explained the contributions that the

Byzantine Empire made to the world, including the Justinian Code and the preservation of

ancient Greek and Roman learning and traditions, architecture, and government. In seventh grade

(77.3, 77.6) students explained global influences on the environment, including the effects of

increases in population, the growth of cities, and efforts by citizens and governments to protect

the natural environment; and also explained the impact of increasing global economic

interdependence in the late twentieth century and the early twentyfirst century, including the

significance of global communication, labor demands, and migration. In eighth grade (8.4.4)

students explained how events during Reconstruction improved opportunities for African

Americans but created a backlash that, by the end of Reconstruction, negated the gains African

Americans had made, including the philanthropy of northern aid societies, the assistance


provided by the federal government such as the Freedmen’s Bureau, and their advancement in

politics and education. Also in eighth grade (85.2, 86.1) students compared key aspects of the

Populist movement in South Carolina, including the founding of landgrant colleges; and

summarize the progressive reform movement in South Carolina, including the motivation of

progressives; child labor laws; Prohibition; improvements to roads, hospitals, and libraries; tax

reforms; changes to local government systems; and the roles of significant state governors and

women’s groups. Eighth grade (86.2, 87.1) students also explained the impact of World War I

on South Carolina, including the building of new military bases and the economic impact of

emigration to industrial jobs in the North and summarized the significant aspects of the economic

growth experienced by South Carolina during and following World War II, including the

creation of the State Development Board and the technical education system; the benefits of

good road systems, a sea port, and the Savannah River site; and the scarcity of labor unions.

In Global Studies (GS 5.6) students exemplified the lasting impact of World War II, including the

moral implications of military technologies and techniques such as the atomic bomb, the human

costs of the war, and the establishment of democratic governments in European countries. In

United States History (USHC5.2, USHC6.1) students summarized the factors that influenced

the economic growth of the United States and its emergence as an industrial power, including the



industrialization; and analyzed the development of American expansionism, including the

change from isolationism to intervention, the rationales for imperialism based on Social

Darwinism and expanding capitalism, and domestic tensions. U.S. History students (USHC8.3,

USHC10.2) also summarized the impact of World War II and war mobilization on the home

front, including war bond drives, rationing, the role of women and minorities in the workforce,

and racial and ethnic tensions such as those caused by the internment of Japanese Americans;

and summarized key economic issues in the United States since the fall of communist states,

including recession, the national debt and deficits, legislation affecting organized labor and labor

unions, immigration, and increases in economic disparity. U.S. Government students (USG1.1)

will summarize arguments for the necessity and purpose of government and politics, including

the idea that politics enables a group of people with diverse opinions and interests to reach

collective decisions, the idea that government gives people the security they need in order to

reach their full potential, and the idea that the purposes of government include enhancing

economic prosperity and providing for national security. Also in United States Government

(USG 3.2) students explain the organization and responsibilities of local and state governments,

including the purposes and functions of state constitutions; reserved and concurrent powers in

the states; the relationships among national, state, and local levels of government; and the

structure and operation of South Carolina’s government.

Future Knowledge

While no future knowledge is required, students should have a basic understanding of the role of

the government in providing key public goods and services. All Americans are consumers of

government provided or subsidized goods and services and should therefore, have a basic

knowledge of where these goods come from and how they are paid for. This knowledge allows

young adults to make their own decisions about how they believe public goods should be

provided and paid for. It also provides an opportunity for students to consider what goods and


services they believe fall under the classification of public good. This information provides

students with a sound foundation from which they can be wellinformed citizens and decision

makers.

It is essential for students to know It is essential that students understand the definition of a public good and a collectively consumed good. They should know the characteristics of these types of goods and further,

understand the inherent challenges of the private provision of these goods. Examples like

education, highways, national defense, public health, and public infrastructure provide useful

illustrations. It is also essential to understand the potential for free riders with these types of

goods and services.

Students must understand that public goods and services are paid for out of government tax

revenue. These taxes may come from a variety of sources; income taxes, sales taxes, capital

gains taxes, estate taxes, etc. It is essential that students understand the government cannot

provide more public goods and/or services without either sacrificing some existing public

good/service provision or raising more tax revenue. The government, and society as a whole, is

faced with scarcity just as individuals are.


Students do not need to know details of past or current federal budgets. It is also not essential for

students to know specifics related to government deficits or debt. Further, students do not need to

know which types of taxation support specific public goods or services.

Assessment guidelines: Appropriate assessment requires students to explain the types of goods and services that are funded with government revenues; therefore, the primary focus of assessment should be for

students to identify key public goods and services provided by the government and to summarize

the characteristics of these types of goods and services. However, appropriate assessment should

also focus on student ability to explain the relationship between government tax collection and

public good/service provision.



Economics



ECON7.5 Contrast the costs and benefits of the American government’s economic policies,

including how policies designed to reduce unemployment may increase inflation and

vice versa and how investment in factories, machinery, new technology, health

education, and occupational training can raise standards of living.


Previous knowledge:

In Kindergarten (K1.2) students explained how changes in modes of communication and

transportation have changed the way that families live and work, including email and the

telephone as opposed to letters and messengers for communication and the automobile as

opposed to the horse for transportation. In first grade (13.3) students identified ways that

government affects the daily lives of individuals and families in the United States, including

providing public education, building roads and highways, and promoting personal freedom and

opportunity for all. As well, in third grade (34.6, 34.7) students explained how the Civil War

affected South Carolina’s economy, including destruction of plantations, towns, factories, and

transportation systems; and summarized the effects of Reconstruction in South Carolina,

including the development of public education, racial advancements and tensions, and economic

changes. Also in third grade (35.4, 35.5) students explained the impact and the causes of

emigration from South Carolina and internal migration from the rural areas to the cities,

including unemployment, poor sanitation and transportation services, and the lack of electricity

and other modern conveniences in rural locations; and explain the effects of the Great

Depression and the New Deal on daily life in South Carolina, including the widespread poverty

and unemployment and the role of the Civilian Conservation Corps.

In fifth grade (53.1, 54.1) students explained how the Industrial Revolution was furthered by

new inventions and technologies, including new methods of mass production and transportation

and the invention of the light bulb, the telegraph, and the telephone and summarized changes in

daily life in the boom period of the 1920s, including the improved standard of living; the

popularity of new technology such as automobiles, airplanes, radio, and movies; and others. In

fifth grade (54.3, 54.6) students explained the immediate and lasting effect on American

workers caused by innovations of the New Deal, including the Social Security Act, the Federal

Deposit Insurance Corporation, and the Civilian Conservation Corps and summarized key

developments in technology, aviation, weaponry, and communication and explained their effect

on World War II and the economy of the United States. Also in fifth grade (56.3) students

explained how technological innovations have changed daily life in the United States since the

early 1990s, including changes in the economy and the culture that were brought about by

computers, electronics, satellites, and mass communication systems.


In seventh grade (77.2) students explained the significance and impact of the information,

technological, and communications revolutions, including the role of television, satellites,

computers, and the Internet. In eighth grade (8.4.4, 84.5) students explained how events during

Reconstruction improved opportunities for African Americans but created a backlash that, by the

end of Reconstruction, negated the gains African Americans had made, including the assistance

provided by the federal government such as the Freedmen’s Bureau, and their advancement in

politics and education and summarize the successes and failures that occurred in South Carolina

during Reconstruction, including the bribery of legislators, corruption in political parties, the

development of public education, and violence during the election of 1876. Also in eighth grade

(85.2, 86.1) students compared key aspects of the Populist movement in South Carolina,

including the founding of landgrant colleges; and summarized the progressive reform movement

in South Carolina, including the motivation of progressives; child labor laws; Prohibition;

improvements to roads, hospitals, and libraries; tax reforms; changes to local government

systems; and the roles of significant state governors and women’s groups. Eighth grade (86.2, 8

6.5) students also explained the impact of World War I on South Carolina, including the building

of new military bases and the economic impact of emigration to industrial jobs in the North; and

explained the effects of the Great Depression and the lasting impact of New Deal programs on

South Carolina. As well, eighth grade students summarized the significant aspects of the

economic growth experienced by South Carolina during and following World War II, including

the creation of the State Development Board and the technical education system; the benefits of

good road systems, a sea port, and the Savannah River site; and explain the economic impact of

twentieth century events on South Carolina, including the opening and closing of military bases,

the development of industries, the influx of new citizens, and the expansion of port facilities.

In United States History (USHC5.2, USHC5.3) students summarized the factors that influenced

the economic growth of the United States and its emergence as an industrial power, including the



industrialization; and explained the transformation of America from an agrarian to an industrial

economy, including the effects of mechanized farming, the role of American farmers in facing

economic problems, and the rise of the Populist movement. United States History (USHC7.4,

USHC7.5) students explained the causes and effects of the stock market crash of 1929 and the

Great Depression, including limited government regulation, stock market speculation, and the

collapse of the farm economy; wealth distribution, investment, and taxes; government policies

and the Federal Reserve System; and compared the first and second New Deals as responses to

the economic bust of the Great Depression, including the rights of women and minorities in the

workplace and the successes, controversies, and failures of recovery and reform measures such

as the labor movement. U.S. History students (USHC8.5, USHC10.2) will also explain the lasting impact of the scientific and technological developments in America after World War II,

including new systems for scientific research, medical advances, improvements in agricultural

technology, and resultant changes in the standard of living and demographic patterns; and

summarized key economic issues in the United States since the fall of communist states,


unions, immigration, and increases in economic disparity.


Future Knowledge While no future knowledge is required, students should have a basic understanding of the role of the government in promoting economic stability. Students should also understand key economic

goals that our society is generally striving towards. In order to be effective consumers, workers,

and voters students should have a basic understanding of key macroeconomics measurements,

like unemployment, inflation, and GDP growth. All of these provide a window into the economic

health of the nation. Students should also have general information about the kinds of fiscal

policy tools that the government has available when managing the economy. This information

will provide students with an appropriate background to enable them to be wellinformed

citizens and better individual decisionmakers.


Students need to be able to identify economic goals and explain how the achievement of some

economic goals sacrifices the attainment of others. Students should understand the potential

contradictory nature of goals like stable prices and strong economic growth or low

unemployment and low inflation. It is essential that students can explain various tradeoffs

relating to economic goals. It is also important for students to understand the different fiscal

options the government has available in promoting economic stability. Government spending and

investment in areas like transportation, education, healthcare, and others are all direct and

indirect polices that promote economic stabilization. Students should also understand the trade

offs between societal consumption and investment and how this impacts future changes in the

production possibilities curve.


Students do not need to know specific examples of government stabilization efforts. It is not

essential that they know specific examples of government spending efforts to encourage

economic stabilization. Students also do not need to understand the detailed theoretical and

ethical debates behind many of the stated economic goals.


Appropriate assessment requires students to contrast the costs and benefits of the American

government’s economic policies; therefore, the primary focus of assessment should be for students to compare and contrast different economic goals and the potential economic tradeoffs that may occur in

achieving these goals. However, appropriate assessment should also focus on students understanding of

key economic goals and policy measures that could be used to achieve these goals.



Economics

Standard ECON8: The student will demonstrate an understanding of the

principles of trade and economic development. ECON8.1 Explain the basic principles of international trade, including the worldwide

distribution of resources, the concept of absolute and comparative advantages that

leads to specialization and trade, and the concepts of balance of trade and balance of

payments that are used to measure international trade. (E, G)

Taxonomy Level B 2 Understand /Conceptual Knowledge

Previous knowledge In first grade (12.2) students compared the ways that people use land and natural resources in different settings across the world, including the conservation of natural resources and the

actions that may harm the environment. In second grade (24.2, 25.4) students summarized how nationstates interact with one another in order to conduct trade and identify the relationships


capital resources. Third grade (32.1) students explained the motives behind the exploration of

South Carolina by the English, the Spanish, and the French, including the idea of “for king and

country.” As well, in fourth grade (41.2) students summarized the motivation and

accomplishments of the Vikings and the Portuguese, Spanish, English, and French explorers.

While fifth grade (54.7, 56.5) students explained the effects of increasing worldwide economic

interdependence following World War II and summarized the changes that have taken place in

United States foreign policy since 1992, including the globalization of trade and the war on

terrorism.

In sixth grade (61.5, 66.2) students explained the role of economics in the development of early

civilizations, including the significance and geography of trade networks; and compared the

incentives of the various European countries to explore and settle new lands. In seventh grade (7

1.6, 74.1) students explained the emergence of capitalism, including the significance of

mercantilism, a developing market economy, and an expanding international trade; and

summarized the economic origins of European imperialism, including the conflicts among

European nations as they competed for raw materials and markets and for the establishment of

colonies in Africa, Asia, and Oceania. In eighth grade (81.6) students explained how South

Carolinians used natural, human, and political resources to gain economic prosperity, including

trade with Barbados, rice planting, Eliza Lucas Pinckney and indigo planting, the slave trade, and

the practice of mercantilism.

In high school (GS1.2, GS2.3) students summarized the essential characteristics of Roman

civilization and explain their impact today, including the economic structure of Roman trade and

labor and the economic, geographic, and social influences of transSaharan trade on Africa,

including education and the growth of cities. Global studies (GS4.1, GS6.4) students also

explained the significant political, commercial, and cultural changes that took place in China in


the nineteenth century, including the motivations and effects of China’s changing attitudes

toward foreign trade and summarized the impact of economic and political interdependence on

the world, including efforts to control population growth, economic imbalance and social

inequality and efforts to address them, and the significance of the world economy for different

nations. In United States History (USHC5.2) students summarized the factors that influenced

the economic growth of the United States and its emergence as an industrial power, including the abundance of natural resources; government support and protection in the form of tariffs, labor


industrialization. Students also (USHC6.1, USHC10.2) analyzed the development of American

expansionism, including the change from isolationism to intervention, the rationales for

imperialism based on Social Darwinism and expanding capitalism, and domestic tensions; and

summarize key economic issues in the United States since the fall of communist states, including

recession, the national debt and deficits, legislation affecting organized labor and labor unions,

immigration, and increases in economic disparity.

Future knowledge

While no future knowledge is required, young adults should have a general understanding of the

importance of international trade and globalization to the American economy and the average

American worker. Many students will work for international companies or will work for

companies that engage in international trade. A basic foundation in the principals of trade and

resource specialization is essential for young adults to be competitive and informed employees,

consumers, and citizens.


It is essential for students to understand that resource and product specialization is the basis for

international trade and that the philosophies of Adam Smith and David Ricardo established the

foundations of international trade. Students should be able to define absolute and comparative

advantage and provide basic calculations of examples of absolute and comparative advantage.

Students should also be able to illustrate the concept of comparative advantage using the

production possibilities frontiers.

Students should be able to explain and identify how specialization occurs among nations. They

should be able to explain what labor, land, and capital intensive specialization means and provide

examples of nations that meet these criteria. It is also important for students be able to

differentiate between the balance of trade and balance of payments and to explain the

significance of these measurements.


It is not essential for students to know specific statistics related to US trade; however, this

knowledge is not detrimental and does not detract from the indicator. For example, students do

not need to know major trading partners or the monthly trade deficit but this information is

certainly useful as relevant examples. Students also do not need to know the details of

international trade agreements, such as the GATT, NAFTA, WTO, and others. In addition,

students do not have to understand details of the ongoing debate over the significance of the

trade deficit.



Appropriate assessment requires students to explain the basic principles of international trade;

therefore, the primary focus of assessment should be for students to compare the international

trade models of absolute and comparative advantage. However, appropriate assessment should

also focus on students understanding and illustration of the outcomes of international trade

based on comparative advantage, or resource specialization.



Economics


principles of trade and economic development. ECON8.2 Summarize the outcomes of global trade, including gains made by individuals and

nations through trade, increases in consumer choice and standard of living, and gains

in production efficiency. (E, G)

Taxonomy Level: B 2 Understanding /Conceptual Knowledge

Previous knowledge

In second grade (24.2) students summarized how nationstates interact with one another in order

to conduct trade. In fourth grade (41.4) students explained the exchange of plant life, animal

life, and disease that resulted from exploration of the New World. While fifth grade

(56.4, 56.5) students identified examples of cultural exchanges between the United States and other countries that illustrate the importance of popular culture and the influence of American

popular culture in other places in the world and summarized the changes that have taken place in

United States foreign policy since 1992, including the globalization of trade and the war on

terrorism.


civilizations, including the significance and geography of trade networks; and illustrated the

exchange of plants, animals, diseases, and technology throughout Europe, Asia, Africa, and the

Americas (known as the Columbian Exchange), and explained the effect on the people of these

regions. Seventh grade (77.3, 77.6) students explained global influences on the environment,

including the effects of increases in population, the growth of cities, and efforts by citizens and

governments to protect the natural environment; as well as the impact of increasing global

economic interdependence in the late twentieth century and the early twentyfirst century,

including the significance of global communication, labor demands, and migration; the European

Economic Community (EEC) and other trade agreements; and the oil crisis of the 1970s.

Global Studies (GS4.2, GS6.4) students explained the economic and cultural impact of

European involvement on other continents during the era of European expansion and

summarized the impact of economic and political interdependence on the world, including

efforts to control population growth, economic imbalance and social inequality and efforts to

address them, and the significance of the world economy for different nations. In United States

History (USHC5.2) students summarized the factors that influenced the economic growth of the United States and its emergence as an industrial power, including the abundance of natural

resources; government support and protection in the form of tariffs, labor policies, and subsidies;

and the expansion of international markets associated with industrialization. Students also

(USHC10.2) summarized key economic issues in the United States since the fall of communist

states, including recession, the national debt and deficits, legislation affecting organized labor

and labor unions, immigration, and increases in economic disparity.


Future knowledge



American worker. Given the importance of international trade to most companies and many jobs

across America, students should have a basic foundation in the potential winners and losers with

free trade and the consequences of protectionist policies. This knowledge allows students to be

better decision makers when politicians, lobbyists, or companies push for a specific policy

approach on international trade. In general, a basic foundation of knowledge concerning the

outcomes of free trade and reduced protectionism is essential for young adults to be competitive

and informed employees, consumers, and citizens.

It is essential for students to know It is essential that students can identify the potential winners and losers from both free trade and

protectionist trade policy. Students should be able to explain graphically the impact of a tariff, as

well as a quota. It is also essential that students understand the relationship between government

intervention of this nature and market inefficiency, represented graphically by the deadweight

loss of a tariff. Students should be able to illustrate graphically who will bear the burden of a

tariff; identify the area of revenue collected by a tariff; and identify the area of deadweight loss

created by a tariff. As well, students will be able to use a consumption possibilities frontier and a

circular flow diagram to illustrate how trade increases consumption and how increased imports

and exports are represented in a circular flow diagram.


It is not essential for students to have knowledge of specific tariffs or quotas. They also do not

need to know details of other nation’s tariffs or quotas or international policies concerning tariffs

or quotas. Students do not need to understand the historical trend and evolution of tariff

reduction, driven, in part, by international agreements/organizations like the GATT, WTO, and

others. Further, it is not essential for students to have a detailed understanding of specific

winners and losers from an imposed, current day tariff or quota.


Appropriate assessment requires students to summarize the outcomes of global trade; therefore, the

primary focus of assessment should be for students to construct causeandeffect models of the results of

both free trade and protectionist policies and to illustrate the potential winners and loser from both types

of policies.



Economics


principles of trade and economic development. ECON8.3 Compare the effects of unrestricted and restricted trade—including those of tariffs

and quotas—on the economic and social interests of a nationstate. (E, G)

Taxonomy Level: B 3 Applying /Conceptual Knowledge

Previous knowledge In first grade (16.2) students explained methods for obtaining goods and services, including buying with money and bartering. In second grade (24.2, 25.4) students summarized how

nationstates interact with one another in order to conduct trade and identify the relationships


capital resources. Third grade students (32.1) explained the motives behind the exploration of

South Carolina by the English, the Spanish, and the French, including the idea of “for king and

country.” While fourth grade (41.1, 41.4) students explained the political, economic, and

technological factors that led to the exploration of the New World by Spain, Portugal, and

England, including the competition between nationstates, the expansion of international trade,

and the technological advances in shipbuilding; and explain the exchange of plant life, animal

life, and disease that resulted from exploration of the New World. Fourth grade (42.5, 45.2)

students also summarized the introduction and establishment of slavery in the American

colonies, including the role of the slave trade; the nature of the Middle Passage; and the types of goods—rice, indigo, sugar, tobacco, and rum, for example—that were exchanged among the

West Indies, Europe, and the Americas; and explained the motives for the exploration in the

West and the push for westward expansion, including the concept of manifest destiny, economic

opportunities in trade, and the availability of rich land. In fifth grade (52.3, 56.5) students

summarized how railroads affected development of the West, including their ease and

inexpensiveness for travelers and their impact on trade and the natural environment; while also

summarizing the changes that have taken place in United States foreign policy since 1992,

including the globalization of trade and the war on terrorism.


civilizations, including the significance and geography of trade networks and summarized the

features and major contributions of China, including its golden age of art and literature, the

invention of gunpowder and woodblock printing, and commercial expansion and the rise of

trade. Also in sixth grade (66.2) students compared the incentives of the various European

countries to explore and settle new lands. Seventh grade (71.3, 71.6) students compared how

European nations exercised political and economic influence differently in the Americas,

including tradingpost empires, plantation colonies, and settler colonies and explained the

emergence of capitalism, including the significance of mercantilism, a developing market

economy, an expanding international trade, and the rise of the middle class. Seventh grade (7

4.1, 77.6) students also summarized the economic origins of European imperialism and explain


the impact of increasing global economic interdependence in the late twentieth century and the

early twentyfirst century. In eighth grade (81.6) students explained how South Carolinians used

natural, human, and political resources to gain economic prosperity, including trade with

Barbados, the slave trade, and the practice of mercantilism. Also in eight grade (87.5) students

explained the economic impact of twentieth century events on South Carolina, including the

opening and closing of military bases, the development of industries, the influx of new citizens,

and the expansion of port facilities.

In high school Global Studies (GS1.2, GS2.3) students summarized the essential characteristics

of Roman civilization and explained their impact today, including the influence of other

civilizations on Rome’s development, the economic structure of Roman trade and labor, and

factors contributing to the decline of the empire; and also summarized the economic, geographic,

and social influences of transSaharan trade on Africa, including education and the growth of

cities. Global Studies (GS4.1, GS4.2) students also explained the significant political,

commercial, and cultural changes that took place in China in the nineteenth century, including

the unification of Chinese culture and the motivations and effects of China’s changing attitudes toward foreign trade and interaction; and further, explained the economic and cultural impact of

European involvement on other continents during the era of European expansion. In United States History (USHC5.2) students summarized the factors that influenced the




industrialization. Students also (USHC6.1) analyzed the development of American


imperialism based on Social Darwinism and expanding capitalism, and domestic tensions. In

United States Government (USG4.1, USG4.2) students summarized ways in which United

States foreign policy is formulated and carried out, including current foreign policy issues and

security interests; the influence and exchange of political ideas between nations; and America’s

contributions to the world in politics, environmentalism, technology, science, humanitarianism,

and culture; and compared the roles of international organizations in world affairs, including the

United Nations, the North Atlantic Treaty Organization (NATO), and the World Health

Organization.

Future knowledge



American worker. Given the importance of international trade to most companies and many jobs

across America, students should have a basic understanding of the impact of tariffs or quotas on

consumers, producers, and the nation, generally. Students should have a general understanding of

the political nature of many of these policies, which allows students to be better decision makers

when politicians, lobbyists, or companies push for a specific policy approach on international

trade. In general, a basic foundation of knowledge concerning the outcomes of free trade and

reduced protectionism is essential for young adults to be competitive and informed employees,

consumers, and citizens.



It is essential that students be able to define and provide examples of tariffs, quotas, and other

nontariff barriers. Students should understand the kinds of goods and that fall into these

respective categories. Students should be able to use a graphical illustration to show the effect of a

tariff and or a quota. This includes the student being able to identify the efficiency loss of a tariff

on consumer surplus and the resulting changes in producer surplus. It is also essential that

students be able to compare graphically the outcome of a quota and a tariff on the price and

quantity of an example good.

It is also essential that students can identify the potential winners and losers from both free trade

and protectionist trade policy. It is essential that students understand the political nature of these

policies and be able to use this information to clarify potential winners and losers from specific

trade policy.


It is not essential for students to be able to explain or illustrate how the levying of a tariff or a

quota affects foreign consumers and producers; or be able to explain how tariffs or quotas impact

world prices and trade. It is not essential for students to have knowledge of specific tariffs or

quotas. They also do not need to know details of other nation’s tariffs or quotas or international

policies concerning tariffs or quotas. Students do not need to understand the historical trend and

evolution of tariff reduction, driven, in part, by international agreements/organizations like the

GATT, WTO, and others.

Assessment guidelines Appropriate assessment requires students to compare the effects of unrestricted and restricted trade; therefore, the primary focus of assessment should be for students to interpret the domestic outcome of a

tariff or quota from graphical illustrations representing these policies. Additional assessments may

require students to compare and contrast the outcomes from a domestic tariff or quota, with emphasis on

changes in consumer and producer surplus as a result of trade restrictions.



Economics


principles of trade and economic development.

ECON8.4 Explain the basic concept of the foreign exchange market, including the operation of

exchange rates and the effects of the dollar’s gaining or losing value relative to other

currencies. (E)

Taxonomy Level: B 2 Understand /Conceptual Knowledge.

Previous knowledge

In first grade (16.2) students explained methods for obtaining goods and services, including buying with money and bartering. In second grade (25.2) students summarized the concept of

supply and demand and explained its effect on price. In fifth grade (54.2, 56.5) students

summarized the stock market crash of 1929 and the Great Depression, including economic

weakness, unemployment, failed banks and businesses, and migration from rural areas; while

also summarizing the changes that have taken place in United States foreign policy since 1992,


In sixth grade (65.1) students summarized the origins of the Renaissance and its spread

throughout Europe, including interaction between Europeans and Muslims during the Crusades,

political and economic changes, developments in commerce, and intellectual and artistic growth.

Seventh grade (75.2, 75.3) students explained the outcome and effects of World War I,

including the conditions and failures of the League of Nations and the Treaty of Versailles and

the effects of major treaties on population movement, the international economy, and shifts in

borders; while also explaining the worldwide depression that took place in the 1930s, including

the economic crash of 1929 and political responses to the depression such as the New Deal in the

United States, the rise of Nazism in Germany, and the economic retrenchment in Britain. Also in

seventh grade (77.6) students explained the impact of increasing global economic

interdependence in the late twentieth century and the early twentyfirst century, including the

significance of global communication, labor demands, and others.

In United States History (USHC5.2) students summarized the factors that influenced the




industrialization. Students also (USHC7.4) explained the causes and effects of the stock market

crash of 1929 and the Great Depression, including the disparity in incomes, limited government

regulation, stock market speculation, and the collapse of the farm economy; wealth distribution,

investment, and taxes; government policies and the Federal Reserve System; and the effects of

the Depression on human beings and the environment. As well, in United States Government

(USG4.1) students summarized ways in which United States foreign policy is formulated and

carried out, including current foreign policy issues and security interests; the impact of foreign


policy on individual citizens; the influence and exchange of political ideas between nations; and

America’s contributions to the world in politics, environmentalism, technology, science,

humanitarianism, and culture.

Future knowledge While no future knowledge is required, young adults should have a general understanding of the importance of international trade and globalization to the American economy and the average

American worker. While students do not need to be scholars of international finance, a basic

understanding of how the value of the dollar impacts U.S. firms, consumers, and individuals in

other nations, provides a framework to understand changing economic and political conditions

that may directly impact their individual lives. Thus, a basic knowledge of foreign exchange

and currency markets allows students to be more effective decision makers when economists,

politicians, lobbyists, or companies push for a specific policy approach on international trade or

economic issues, generally.


It is essential for students to know that currencies are bought and sold in a market like most

goods and services are. Currencies are, therefore, subject to the forces of supply and demand in

the same way that goods and services are. The student should be able to use a simple supply and

demand diagram to explain how currency values are set. As well, they should have a basic

understanding of why currencies might be in greater or lesser demand. Because currencies

operate in a competitive market, students should understand that their value fluctuates depending

upon a variety of economic reasons. It is important for students to understand that weaker

currencies are not necessarily detrimental to a nation’s well being as a weaker currency may

increase a nation’s overall export and domestic economic activity. It is also essential for a

student to understand that a weaker currency can increase domestic employment, while making it

more expensive to purchase imported goods that may be necessary for production.

Students should be able to identify the currency units of G8 countries to include the Yen,

Canadian Dollar, Pound, Euro, and the symbols connected with these currencies. Students should

understand that these currencies are specific to the nation’s economy that it represents and is not

based on the value of a specific commodity, like gold, silver, etc. As well, students should be

able to perform simple conversions of USD to other currencies.

It is not essential for students to know It is not essential for students to know specific details concerning the operation of currency markets. They do not need to be able to define terms such as Purchasing Power Parity or other

specific foreign exchange terminology. Students also do not need to know examples of specific

policy approaches that attempt to influence or manipulate exchange rates in a given direction.

Assessment guidelines Appropriate assessment requires students to explain the basic concept of the foreign exchange market; therefore, the primary focus of assessment should be for students to identify reasons why the

supply and demand for a specific currency may change and to interpret a graphical analysis of

the equilibrium price and quantity of a currency market. Additional assessment may also require


students to classify the positive and negative outcomes that can result from a weak or strong

currency.



Economics


principles of trade and economic development. ECON8.5 Summarize global patterns of economic activity—including world trade partners,

the geographic features of trade, and international political borders—and explain

the impact of developing nations on the global economy. (E, G, P)

Taxonomy Level: A 2 Understanding /Factual Knowledge

Previous knowledge:

In first grade (12.2) students compared the ways that people use land and natural resources in

different settings across the world, including the conservation of natural resources and the

actions that may harm the environment. Second grade (22.2) students recognized characteristics

of the local region, including its geographic features and natural resources. Also in second grade

(24.2, 25.4), students summarized how nationstates interact with one another in order to

conduct trade and identified the relationships between trade and resources both within and

among communities, including natural, human, and capital resources. As well, in fourth grade (4

1.1, 41.2) students explained the political, economic, and technological factors that led to the exploration of the New World by Spain, Portugal, and England, including the competition

between nationstates, the expansion of international trade, and others ; and summarized the

motivation and accomplishments of the Vikings and the Portuguese, Spanish, English, and

French explorers.

Fourth grade (41.3) students also used a map to identify the routes of various sea and land

expeditions to the New World and matched these to the territories claimed by different nations.

While fifth grade (54.7, 55.5) students explained the effects of increasing worldwide economic

interdependence following World War II and the political alliances and policies that impacted

the United States in the latter part of the twentieth century, including the North Atlantic Treaty Organization (NATO), the United Nations, and the Organization of Petroleum Exporting

Countries (OPEC). Also in fifth grade (56.4, 56.5) students identified examples of cultural

exchange between the United States and other countries that illustrated the importance of popular

culture and the influence of American popular culture in other places in the world and

summarized the changes that have taken place in United States foreign policy since 1992,


In sixth grade (61.3, 61.5) students used maps, globes, and models in explaining the role of the

natural environment in shaping early civilizations, including the role of the river systems, the

relationship of landforms, climate, and natural resources to trade and other economic activities

and trade; and explained the role of economics in the development of early civilizations,

including the significance and geography of trade networks. Also in sixth grade (66.1) students

used a map to illustrate the principal routes of exploration and trade between Europe, Asia,

Africa, and the Americas during the age of European exploration.

In seventh grade (71.1, 71.5) students used a map or series of maps to identify the colonial

expansion of European powers in Africa, Asia, Oceania, and the Americas through 1770 and

summarized the characteristics of European colonial powers in Asia and their effects on the

society and culture of Asia, including global trade patterns and the spread of various religions.

Also in seventh grade (71.6, 74.1) students explained the emergence of capitalism, including

the significance of mercantilism, a developing market economy, and an expanding international

trade; and summarized the economic origins of European imperialism, including the conflicts

among European nations as they competed for raw materials and markets and for the

establishment of colonies in Africa, Asia, and Oceania. Seventh grade students (74.2, 74.5)

used a map to illustrate the geographic extent of European imperialism in various regions and

summarize the significant features and explain the causes of Japan’s imperial expansion in East

Asia. As well, seventh grade (76.1, 77.6) students summarized the political and economic

transformation of Western and Eastern Europe after World War II, including the significance of

the Marshall Plan, and the European Economic Community (EEC); and explained the impact of

increasing global economic interdependence in the late twentieth century and the early twenty

first century, including the significance of global communication, labor demands, and migration;

the European Economic Community (EEC) and other trade agreements; and the oil crisis of the

1970s.

In high school (GS1.2, GS2.3) students summarized the essential characteristics of Roman

civilization and explained their impact today, including the economic structure of Roman trade

and labor and the economic, geographic, and social influences of transSaharan trade on Africa,

including education and the growth of cities. Global studies (GS4.1, GS4.2) students also

explained the significant political, commercial, and cultural changes that took place in China in

the nineteenth century, including the motivations and effects of China’s changing attitudes

toward foreign trade; and explained the economic and cultural impact of European involvement

on other continents during the era of European expansion. As well, Global Studies students (GS

4.5, GS6.4) compared the political actions of European, Asian, and African nations in the era of

imperial expansion and summarized the impact of economic and political interdependence on the

world, including efforts to control population growth, economic imbalance and social inequality

and efforts to address them, and the significance of the world economy for different nations.

In United States History (USHC5.2) students summarized the factors that influenced the




industrialization. Students also (USHC6.1, USHC 6.3) analyzed the development of American


imperialism, and domestic tensions; and compared United States foreign policies in different

regions of the world during the early twentieth century. United States History Students (USHC

10.2) summarized key economic issues in the United States since the fall of communist states,


unions, immigration, and increases in economic disparity.

Future knowledge While no future knowledge is required, young adults should have a general understanding of the trend towards increased international trade and globalization. The trend towards increased

globalization means that most young adults will be impacted by this trend in some manner. They

will either work for a global firm or will work for companies that engage in international trade.

Further, the trend towards globalization means that America and all of its citizens have to be

increasingly competitive to keep up in an ever changing global landscape. Given this, it is

imperative that students have a basic understanding of globalization trends and its potential

impact on American consumers, producers, and workers.

It is essential for students to know Students should have a general understanding of global patterns of word trade. They should understand what major resource categories the world’s largest trading nations specialize in. As

an example, they should understand that China specializes in laborintensive goods and the

United States in land and capital intensive goods. It is essential that students make the connection

between access to resources and specialization in trade. As students should have a general

understanding of who the world’s biggest trading nations are.

It is essential for students to understand key differences between the developed and the

developing world. Students should know that the classification as “developing” does not mean a

nation lacks critical resources. They should know examples of developing nations and nations

that have recently become “developed.” Examples of countries like Taiwan and Singapore are

excellent examples of the impact of trade on developing nations. With regard to globalization

trends generally, students should understand that open and free trade increases the overall well

being of all nations involved, even though some individuals and groups may suffer losses in the

nearterm.


It is not essential that students understand specific theories of economic development or all of the

rationales given for a lack of development in different countries. Students do not have to

understand quantitative examples of the HeckscherOhlin theorem, even though a conceptual

foundation in resource specialization and trade is important. As well, it is not essential that

students know an extensive list of the world’s trading agreements, however a few key examples,

like NAFTA, EU, and others, would be useful.


Appropriate assessment requires students to summarize global patterns of economic activity; therefore, the primary focus of assessment should be for students to explain the relationship between

global patterns of trade and national resource specialization. However, appropriate assessment should also

focus on students identifying key global trading nations and classifying key differences between the developed and the developing world.

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Economics - Amazon Web Servicestoolboxforteachers.s3.amazonaws.com/Standards/social-studies/HS… · westward expansion and summarized the events that led to key territorial acquisitions—as