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Topic: Scarcity and choice 

Economics

 Standard 1.  Understands that scarcity of productive resources requires choices that generate opportunity costs
  Level I (Grade K-2)
   Benchmark 2.Understands that since people cannot have everything they want, they must make choices about using goods and services to satisfy wants
    Knowledge/skill statements
     1.Understands that people cannot have everything they want
     2.Knows that people must make choices about goods
     3.Knows that people must make choices about services
     4.Knows that people must make choices about satisfying wants
   Benchmark 8.Knows that choices about what goods and services to buy and consume determine how resources will be used.
    Knowledge/skill statements
     1.Knows that choices about what goods to buy and consume determine how resources will be used
     2.Knows that choices about what services to buy determine how resources will be used
  Level II (Grade 3-5)
   Benchmark 2.Understands that goods and services are scarce because there are not enough productive resources to satisfy all of the wants of individuals, governments, and societies
    Knowledge/skill statements
     1.Understands that sometimes goods and services are scarce
     2.Understands that goods and services are scarce because there are not enough productive resources to satisfy all the wants of individuals
     3.Understands that goods and services are scarce because there are not enough productive resources to satisfy all of the wants of governments
     4.Understands that goods and services are scarce because there are not enough resources to satisfy all the wants of societies
   Benchmark 3.Understands that federal, state, and local governments have problems of scarcity also; because they have limited budgets, they must compare their revenues to the costs of public projects their citizens want
    Knowledge/skill statements
     1.Understands that federal governments have problems of scarcity
     2.Understands that state governments have problems of scarcity
     3.Understands that local governments have problems of scarcity
     4.Knows that federal governments have limited budgets
     5.Knows that state governments have limited budgets
     6.Knows that local governments have limited budgets
     7.Understands that because of limited budgets, governments must compare their revenues to the costs of public projects their citizen’s want
   Benchmark 7.Understands that when productive resources are used to produce one good or service, the opportunity cost (i.e., what is given up) is other goods and services that would have been made with the same resources if the chosen good or service had not been made
    Knowledge/skill statements
     1.Knows that the opportunity cost is something that is given up
     2.Understands that when productive resources are used the opportunity costs are other goods and services
     3.Understands that other goods and services could have been made from productive resources if the chosen good or service had not been made
   Benchmark 8.Understands that choices usually involve trade-offs; people can give up buying or doing a little of one thing in order to buy or do a little of something else
    Knowledge/skill statements
     1.Understands that choices usually involve trade-offs
     2.Knows that a trade-off is when people give up buying or doing a little of something in order to buy or do a little of something else
  Level III (Grade 6-8)
   Benchmark 1.Understands that scarcity of resources necessitates choice at both the personal and the societal levels
    Knowledge/skill statements
     1.Understands that scarcity of resources necessitates choice at the personal level
     2.Understands that scarcity of resources necessitates choice at the societal level
   Benchmark 2.Knows that all decisions involve opportunity costs and that effective economic decision making involves weighing the costs and benefits associated with alternative choices
    Knowledge/skill statements
     1.Knows that all decisions involve opportunity costs
     2.Knows that economic decision-making involves weighing the costs and benefits of alternative choices
   Benchmark 3.Understands that the evaluation of choices and opportunity costs is subjective and differs across individuals and societies
    Knowledge/skill statements
     1.Understands that the evaluation of choices is subjective
     2.Understands that the evaluation of opportunity costs is subjective
     3.Knows that individuals evaluate choices differently
     4.Knows that societies evaluate choices differently
     5.Knows that individuals evaluate opportunity costs differently
     6.Knows that societies evaluate opportunity costs differently
 Standard 2.  Understands characteristics of different economic systems, economic institutions, and economic incentives
  Level IV (Grade 9-12)
   Benchmark 1.Understands that the effectiveness of allocation methods can be evaluated by comparing costs and benefits
    Knowledge/skill statements
     1.Understands how effectiveness of allocation methods is measured
     2.Understands how costs and benefits are related to the effectiveness of allocation methods
   Benchmark 5.Understands that in every economic system consumers, producers, workers, savers, and investors respond to incentives in order to allocate their scarce resources to obtain the highest possible return, subject to the institutional constraints of their society
    Knowledge/skill statements
     1.Understands that in every economic system consumers are subject to the institutional constraints of their society
     2.Understands that in every economic system consumers respond to incentives in order to allocate their scarce resources to obtain the highest possible return
     3.Understands that in every economic system producers respond to incentives in order to allocate their scarce resources to obtain the highest possible return
     4.Understands that in every economic system workers respond to incentives in order to allocate their scarce resources to obtain the highest possible return
     5.Understands that in every economic system savers respond to incentives in order to allocate their scarce resources to obtain the highest possible return
     6.Understands that in every economic system investors respond to incentives in order to allocate their scarce resources to obtain the highest possible return
     7.Understands that in every economic system producers are subject to the institutional constraints of their society
     8.Understands that in every economic system workers are subject to the institutional constraints of their society
     9.Understands that in every economic system savers are subject to the institutional constraints of their society
     10.Understands that in every economic system investors are subject to the institutional constraints of their society
 Standard 3.  Understands the concept of prices and the interaction of supply and demand in a market economy
  Level III (Grade 6-8)
   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