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Topic: Markets and prices 

Business Education

 Standard 3.  Interprets and creates basic financial statements
  Level IV (Grade 9-12)
   Benchmark 7.Prepares and utilizes budgets (e.g., makes cost and revenue forecasts, track budget performance, makes appropriate adjustments)
    Knowledge/skill statements
     1.Prepares budgets
     2.Utilizes budgets
     3.Knows how to make cost forecasts
     4.Knows how to make revenue forecasts
     5.Knows how to track budget performance
     6.Knows how to make appropriate adjustments to a budget
 Standard 14.  Uses basic mathematical operations to solve business problems
  Level IV (Grade 9-12)
   Benchmark 10.Understands various sources of discrepancy between an estimate and a calculated answer
    Knowledge/skill statements
     1.Understands the process of making an estimate
     2.Understands the process of calculating an answer
     3.Understands reasons for discrepancy between an estimate and a calculated answer
   Benchmark 11.Uses formulas and equations to determine price, profit, costs, and break-even points
    Knowledge/skill statements
     1.Uses formulas to determine price
     2.Uses formulas to determine profit
     3.Uses formulas to determine costs
     4.Uses formulas to determine break-even points
     5.Uses equations to determine price
     6.Uses equations to determine profit
     7.Uses equations to determine costs

Economics

 Standard 3.  Understands the concept of prices and the interaction of supply and demand in a market economy
  Level I (Grade K-2)
   Benchmark 1.Knows that a price is the amount of money that people pay when they buy a good or service
    Knowledge/skill statements
     1.Knows that price is usually an amount of money
     2.Knows that people pay a price when they buy a good or service
   Benchmark 2.Knows that a market exists whenever buyers and sellers exchange goods and services
    Knowledge/skill statements
     1.Understands the concept of a market
     2.Understands the relationship between markets and exchanges
  Level II (Grade 3-5)
   Benchmark 1.Knows that in any market there is one price (i.e., the equilibrium or market clearing price) that makes the amount buyers want to buy equal to the amount sellers want to sell
    Knowledge/skill statements
     1.Knows that in any market there is an equilibrium price
     2.Knows that market clearing price is another name for equilibrium price
     3.Knows that the equilibrium price (market clearing price) is whatever makes the amount that buyers want to buy equal to the amount sellers want to sell
   Benchmark 2.Understands that people buy less of a product when its price goes up and more when its price goes down
    Knowledge/skill statements
     1.Understands that people buy less of a product when its price goes up
     2.Understands that people buy more of a product when its price goes down
   Benchmark 3.Understands that businesses are willing and able to sell more of a product when its price goes up and less when its price goes down
    Knowledge/skill statements
     1.Understands that businesses are willing and able to sell more of a product when its price goes up
     2.Understands that people are willing and able to sell less of a product when its price goes down
   Benchmark 4.Understands that when consumers make purchases, goods and services are transferred from businesses to households in exchange for money payments, which are used in turn by businesses to pay for productive resources and to pay taxes
    Knowledge/skill statements
     2.Understands that when consumers make purchases, goods and services are exchanged for money payments
     3.Knows that money payments are used by businesses to pay for productive resources and taxes
  Level III (Grade 6-8)
   Benchmark 1.Knows that relative prices refer to the price of one good or service compared to the prices of others goods and services
    Knowledge/skill statements
     1.Knows that relative prices refer to the price of one good compared to the prices of others goods
   Benchmark 2.Understands that relative prices and how they affect people’s decisions are the means by which a market system provides answers to the basic economic questions: What goods and services will be produced? How will they be produced? Who will buy them?
    Knowledge/skill statements
     1.Knows how relative prices affect people‚Äôs decisions
     2.Understands how relative prices and their affect on economic decision-making determine what goods and services are produced in a market system
     3.Understands how relative prices and their affect on economic decision-making determine how goods and services are produced in a market system
     4.Understands how relative prices and their affect on economic decision-making determine who will buy goods and services in a market system
   Benchmark 3.Understands that the price of any one product is influenced by and also influences the prices of many other products
    Knowledge/skill statements
     1.Understands that the price of one products is influenced by the prices of other products
     2.Understands that the price of one product can influence the prices of other products
   Benchmark 4.Understands that scarce goods and services are allocated in a market economy through the influence of prices on production and consumption decisions
    Knowledge/skill statements
     1.Understands that in a market economy scarce goods and services are allocated through the influence of prices on production decisions
     2.Understands that in a market economy, scarce goods and services are allocated through the influence of prices on consumption decisions
   Benchmark 6.Understands that an increase in the price of a good or service enables producers to cover higher costs and earn profits, causing the quantity supplied to increase (and vice versa), but that this relationship is true only as long as other factors influencing costs of product and supply do not change
    Knowledge/skill statements
     1.Understands that producers can cover higher costs and earn profits when the price of their product increases
     2.Knows that when the prices of products increase, the quantities supplied increases
     3.Knows that when the prices of products decrease the quantities supplied decrease
     4.Understands that the relationship between price of products and supply is true only as long as other factors influencing cost and supply do not change
  Level IV (Grade 9-12)
   Benchmark 5.Understands that shortages or surpluses usually result in price changes for products in a market economy
    Knowledge/skill statements
     1.Understands that shortages usually result in price changes for products in a market economy
     2.Understands that surpluses usually result in price changes for products in a market economy
   Benchmark 6.Understands that when price controls are enforced, shortages and surpluses occur and create long-run allocation problems in the economy
    Knowledge/skill statements
     1.Understands that when price controls are enforced, shortages and surpluses occur
     2.Understands that enforced price controls can create long-run allocation problems in the economy