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List of Benchmarks for Economics

Standard 10.Understands basic concepts about international economics
  Level Pre-K (Grade Pre-K)
   1. Not appropriate for this level
  Level I (Grade K-2)
   1. Not appropriate for this level
  Level II (Grade 3-5)
   1. Knows that different currencies are used in different countries
  Level III (Grade 6-8)
   1. Knows that exports are goods and services produced in one nation but sold to buyers in another nation
   2. Knows that imports are goods or services bought from sellers in another nation
   3. Understands that international trade promotes greater specialization, which increases total world output, and increases material standards of living  A 
   4. Knows that an exchange rate is the price of one nation’s currency in terms of another nation’s currency, and that exchange rates are determined by the forces of supply and demand
   5. Understands that extensive international trade requires an organized system for exchanging money between nations (i.e., a foreign exchange market)
   6. Knows that despite the advantages of international trade (e.g., broader range of choices in buying goods and services), many nations restrict the free flow of goods and services through a variety of devices known as "barriers to trade" (e.g., tariffs, quotas) for national defense reasons or because some companies and workers are hurt by free trade  A 
   7. Understands that increasing international interdependence causes economic conditions and policies in one nation to affect economic conditions in many other nations  A 
   8. Knows how the level of real GDP per capita is used to compare the level of economic development in different nations
  Level IV (Grade 9-12)
   1. Understands that trade between nations would not occur if nations had the same kinds of productive resources and could produce all goods and services at the same real costs
   2. Knows that a nation has an absolute advantage if it can produce more of a product with the same amount of resources than another nation, and it has a comparative advantage when it can produce a product at a lower opportunity cost than another nation  A 
   3. Knows that comparative advantages change over time because of changes in resource prices and events that occur in other nations   A 
   4. Understands that a change in exchange rates changes the relative price of goods and services traded by the two countries and can have a significant effect on the flow of trade between nations and on a nation’s domestic economy  A 
   5. Knows that a nation pays for its imports with its exports
   6. Understands that public policies affecting foreign trade impose costs and benefits on different groups of people (e.g., consumers may pay higher prices, profits in exporting firms may decrease), and that decisions on these policies reflect economic and political interests and forces  A 

 A  = Assessment items available