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Topic: Role of government 

Economics

 Standard 2.  Understands characteristics of different economic systems, economic institutions, and economic incentives
  Level III (Grade 6-8)
   Benchmark 4.Understands that national economies vary in the extent to which they rely on government directives (central planning) and signals from private markets
    Knowledge/skill statements
     1.Understands that national economies vary in the extent to which they rely on government directive
     2.Understands that national economies vary in the extent to which they rely on signals from private markets
     3.Knows that central planning is another way of saying government directives
 Standard 4.  Understands basic features of market structures and exchanges
  Level III (Grade 6-8)
   Benchmark 3.Understands that the United States government uses laws and regulations to maintain competition, but sometimes the government reduces competition unintentionally or in response to special interest groups
    Knowledge/skill statements
     1.Understands that the United States government uses laws and regulations to maintain competition
     2.Understands that sometimes the U.S. government reduces competition unintentionally
     3.Understands that the U.S. government sometimes reduces competition in response to special interest groups
  Level IV (Grade 9-12)
   Benchmark 7.Understands that public service commissions typically regulate natural monopolies because people cannot rely on competition to control price and service levels in these cases
    Knowledge/skill statements
     1.Knows that public service commissions typically regulate natural monopolies
     2.Understands that competition cannot control prices and service levels when natural monopolies are present
 Standard 5.  Understands unemployment, income, and income distribution in a market economy
  Level III (Grade 6-8)
   Benchmark 3.Knows that the government defines "the labor force" as people at least 16 years old who either have a job or are actively looking for work
    Knowledge/skill statements
     1.Knows that the government has official definitions of certain words and phrases
     2.Knows the government definition of "the labor force"
  Level IV (Grade 9-12)
   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
 Standard 6.  Understands the roles government plays in the United States economy
  Level I (Grade K-2)
   Benchmark 1.Knows that some of the goods and services we use are provided by the government (e.g., schools, parks, police and fire protection)
    Knowledge/skill statements
     1.Knows that the government provides some public goods and services
     2.Knows examples of government provided goods and services
     3.Knows that public schools are a good and service provided by the government
     4.Knows that parks are a good and service provided by the government
     5.Knows that police departments are a service provided by the government
     6.Knows that fire departments are a service provided by the government
  Level II (Grade 3-5)
   Benchmark 1.Knows that the government pays for the goods and services it provides through taxing and borrowing
    Knowledge/skill statements
     1.Knows that taxes are used to pay for the goods and services provided by the government
     2.Knows that the government borrows to pay for some of the goods and services it provides
  Level III (Grade 6-8)
   Benchmark 1.Knows that in a market economy the government helps markets to operate efficiently by protecting property rights (i.e. the right to exclude others from using a good or service and the right to transfer ownership) and by providing a system of weights and measures and a standard and stable currency
    Knowledge/skill statements
     1.Knows that in a market economy the government helps markets to operate efficiently
     2.Knows that the government helps markets by protecting property rights
     3.Knows that property rights are the right to exclude others from using a good or service and the right to transfer ownership
     4.Knows that the government helps markets by providing a system of weights and measures
     5.Knows that the government helps markets by providing a standard and stable currency
   Benchmark 2.Understands that governments provide public goods because of the properties of shared consumption (i.e., non-rival products that can be used simultaneously by more than one person without reducing the amount of the product available for others to consume) and non-exclusion (i.e., public goods and service provide benefits to more than one person at the same time, and their use cannot be restricted only to those people who have paid to use them)
    Knowledge/skill statements
     1.Understands that governments provide public goods because of the properties of shared consumption
     2.Understands the concept of shared consumption
     3.Understands that governments provide public goods because of the properties of non-exclusion
     4.Understands the concept of non-exclusion
     5.Knows the meaning of the term "non-rival product"
  Level IV (Grade 9-12)
   Benchmark 2.Understands that most federal tax revenue comes from personal income and payroll taxes, and these taxes are used to fund social security payments, the costs of national defense, medical expenditures, and interest payments on the national debt
    Knowledge/skill statements
     1.Understands that most federal tax revenue comes from personal income and payroll taxes
     2.Understands that federal tax revenue is used to fund Social Security payments
     3.Understands that federal tax revenue is used to cover the costs of national defense
     4.Understands that federal tax revenue is used to fund medical expenditures
     5.Understands that federal tax revenue is used to fund interest payments on the national debt
   Benchmark 3.Understands that most state and local government revenues come from sales taxes, grants from the federal government, personal income taxes, and property taxes, and are used to fund education, public welfare, road constructions and repair, and public safety
    Knowledge/skill statements
     1.Knows that some state and local government revenue come from sales tax
     2.Knows that some state and local government revenue come from federal grants
     3.Knows that some state and local government revenue come from personal income taxes
     4.Knows that some state and local government revenue come from property taxes
     5.Understands that state and local government revenue is used to fund education
     6.Understands that state and local government revenue is used to fund public welfare
     7.Understands that state and local government revenue is used to fund road construction and repair
     8.Understands that state and local government revenue is used to fund public safety
   Benchmark 4.Understands that government can use subsidies to help correct for insufficient output, use taxes to help correct for excessive output, or can regulate output directly to correct for over- or under-production or consumption of a product
    Knowledge/skill statements
     1.Understands that governments can use subsidies to help correct for insufficient output
     2.Understands that governments can use taxes to help correct for excessive output
     3.Understands that governments can regulate output directly to correct for over-production or consumption of a product
     4.Understands that governments can regulate output directly to correct for under-production or consumption of a product
     5.Knows the meaning of "subsidy"
   Benchmark 5.Understands that governments provide an alternative method to markets for supplying goods and services when it appears that the benefits to society of doing so outweigh the costs to society but that not all individuals will bear the same costs or share the same benefits of these policies
    Knowledge/skill statements
     1.Understands why governments provide alternative methods to markets for supplying goods and services
     2.Understands that not all individuals bear the same costs or share the same benefits of governmental policies
     3.Knows alternative methods for providing goods and services
     4.Knows costs and benefits associated with alternative methods of supplying goods and services
 Standard 8.  Understands basic concepts of United States fiscal policy and monetary policy
  Level IV (Grade 9-12)
   Benchmark 3.Understands that when the government runs a budget deficit, it must borrow from individuals, corporations, or financial institutions to finance the excess of expenditures over tax revenues
    Knowledge/skill statements
     1.Understands what happens when the government runs a budget deficit
     2.Knows that when the government runs a budget deficit, it may borrow from individuals
     3.Knows that when the government runs a budget deficit, it may borrow from corporations
     4.Knows that when the government runs a budget deficit, it may borrow from financial institutions
     5.Understands how the government runs a budget deficit
 Standard 9.  Understands how Gross Domestic Product and inflation and deflation provide indications of the state of the economy
  Level IV (Grade 9-12)
   Benchmark 8.Understands that government policies designed to reduce unemployment (e.g., increasing federal spending, reducing taxes) may increase inflation, and vice versa
    Knowledge/skill statements
     1.Understands how government policies designed to reduce unemployment affect inflation
     3.Knows that increasing federal spending is an example of a government policy designed to reduce unemployment
     4.Knows that reducing taxes is an example of a government policy designed to reduce unemployment