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Topic: Income distribution 

Economics

 Standard 5.  Understands unemployment, income, and income distribution in a market economy
  Level III (Grade 6-8)
   Benchmark 1.Knows the four basic categories of earned income: wages and salaries, rent, interest, and profit
    Knowledge/skill statements
     1.Knows that wages and salaries is a basic category of earned income
     2.Knows that rent is a basic category of earned income
     3.Knows that interest is a basic category of earned income
     4.Knows that profit is a basic category of earned income
   Benchmark 2.Understands that wages and salary are influenced by forces of supply and demand for labor, as well as an individual's productivity, education, training and skills
    Knowledge/skill statements
     1.Understands that wages and salary are influenced by supply of labor
     2.Understands that wages and salary are influenced by demand for labor
     3.Understands that wages and salary are influenced by an individual’s productivity
     4.Understands that wages and salary are influenced by an individual’s education
     5.Understands that wages and salary are influenced by an individual’s training and skills
  Level IV (Grade 9-12)
   Benchmark 1.Understands that personal income is influenced by changes in the structure of the economy, the level of gross domestic product, technology, government policies, production costs and demand for specific goods and services, and discrimination
    Knowledge/skill statements
     1.Understands that personal income is influenced by changes in the structure of the economy
     2.Understands that personal income is influenced by changes in the level of gross domestic product
     3.Understands that personal income is influenced by changes in technology
     4.Understands that personal income is influenced by changes in government policies
     5.Understands that personal income is influenced by changes in production costs
     6.Understands that personal income is influenced by changes in the demand for specific goods and services
     7.Understands that personal income is influenced by changes in discrimination
   Benchmark 2.Understands the concept of supply and demand in the labor market (e.g., if wage or salary payments increase, workers will increase the quantity of labor they supply and firms will decrease the quantity of labor they demand)
    Knowledge/skill statements
     1.Understands the concept of supply in the labor market
     2.Understands the concept of demand in the labor market
     3.Knows how changes in wages and salaries may affect levels of supply and demand in the labor market
   Benchmark 3.Understands that for the functional distribution of income economists analyze what percentage of national income is paid out as wages and salaries, proprietors' income, rental income, and interest payments and trace that pattern of income distribution over time
    Knowledge/skill statements
     1.Understands how the functional distribution of income is calculated
     2.Knows that economists analyze what percentage of national income is paid out as wages and salaries and trace that pattern of income distribution over time
     3.Knows that economists analyze what percentage of national income is paid out as proprietors’ income and trace that pattern of income distribution over time
     4.Knows that economists analyze what percentage of national income is paid out as rental income and trace that pattern of income distribution over time
     5.Knows that economists analyze what percentage of national income is paid out as interest payments and trace that pattern of income distribution over time
   Benchmark 4.Understands that the personal distribution of income classifies the population according to the amount of income they receive, including transfer payments
    Knowledge/skill statements
     1.Understands the purpose of personal distribution of income
     2.Knows what personal distribution of income means
     3.Knows how to measure personal distribution of income
   Benchmark 5.Understands that governments often redistribute income directly when individuals or interest groups are not satisfied with the income distribution resulting from markets, and that governments may also redistribute income indirectly as side-effects of other government actions that affect prices or output levels for various goods and services
    Knowledge/skill statements
     1.Knows that the government may redistribute income directly
     2.Knows that the government may redistribute income indirectly
     3.Understands why governments might redistribute income directly
     4.Understands how governments might redistribute income indirectly
     5.Knows that the government may intervene when individuals and interests groups are not satisfied with the income distribution resulting from markets
     6.Knows that government actions that affect prices or output levels may also affect income distribution