Economics and Financial Literacy

Course Details:

Grades: 11-12

Length: one semester

Prerequisites: U.S. History 1 & 2

Course Description:

Learners will come to understand basic economic theory by evaluating choices made by businesses, individuals, and governments in their world, through the lens of economic thought. They will also be able to practice real life skills, such as budgeting, managing credit, writing a resume, menu planning, filling out tax forms, renting, and furnishing a home.

While the grade/course level competencies are required, the content objectives are suggested pathways that move learners toward competency and the achievement of performance indicators.

Economic Principles

Graduate - Level Competency:

Economics

GL.8 The learner will assess personal, national, and global economic decisions by applying financial literacy knowledge and economic principles in various systems in order to make informed budgetary decisions.

Course/Grade Competency:

ES.1 The learner will apply concepts of supply and demand, scarcity, and opportunity costs as related to their role as a consumer and/or producer, in order to be prepared to make informed economic decisions.

Content Objectives:

The learner will:

    • Show how supply and demand impacts the price of goods.

    • Explore how government regulations affects consumer choices.

    • List and explain the factors of production.

    • Describe the concept of scarcity and create examples of trade-offs due to scarcity.

    • Analyze the ways in which people and institutions respond to incentives.

    • Analyze the impact of utility and diminishing marginal returns on economic decisions.

    • Construct supply and demand curves given data about price and quantities.

    • Determine the equilibrium price of a product.

    • Demonstrate the impact of changes in factors of supply and demand by moving the correct curve in the correct direction.

Standards:

NCSS

I-III

C3

D2.Eco.1.9-12,

D2.Eco.3-4.9-12

Suggested Activities, Materials, and Resources:


Economic System

Graduate - Level Competency:

Historical

GL.3 The learner will understand how historical events impact the modern era by applying historical inquiry skills in order to understand the forces of change and make informed decisions.

Course/Grade Competency:

ES.2 The learner will compare various economic systems and understand the concepts of command, free market, mixed economies, capitalism, and socialism, in order to make informed political and economic decisions.

Content Objectives:

The learner will:

    • Identify the characteristics of the three major economic systems, and how they address the three economic questions of relative scarcity.

    • Explore national economic decisions and understand fiscal responsibility.

    • Explore various market structures such as traditional, free market, command, and mixed.

    • Analyze economic systems versus political systems.

    • Examine government intervention in economics.

    • Demonstrate the impact of market interferences in creating shortages and surpluses.

    • Explain the characteristics of the four major market types, and identify to which market-type difference industries belong based on those characteristics.

    • Explain the different options for organizing a business, and the advantages and disadvantages of each.

    • Identify and describe the parts of a typical business cycle graph.

    • Explain the major types of unemployment.

    • Describe how Gross Domestic Product (GDP) is calculated, and adjust GDP to per capita GDP in order to make comparisons to other countries.

    • Adjust GDP for inflation using a price index.

    • Explain the organization of the Federal Reserve System.

    • Analyze elements of monetary policy, and predict their impact on recession or inflation.

    • Explain the major tools used in monetary and fiscal policy to regulate the economy.

Standards:

NCSS

II, V-VII, & IX

C3

D2.Eco,7-9.9-12,

D2.Civ.1.9-12

Suggested Activities, Materials, and Resources:


Finance

Graduate - Level Competency:

Economics

GL.8 The learner will assess personal, national, and global economic decisions by applying financial literacy knowledge and economic principles in various systems in order to make informed budgetary decisions.

Course/Grade Competency:

ES.3 The learner will explain the value of money, forms of currency, inflation, the money multiplier, and monetary policy, in order to use money effectively.

Content Objectives:

The learner will:

  • Describe the characteristics of money.

  • Explain the functions of money.

  • Identify different types of money.

  • Describe major events in the history of banking in the U.S.

  • Identify the elements of the U.S. money supply.

  • Create a budget, given certain data.

  • Explain different reasons for savings and strategies to meet those goals.

  • Describe the function and operation of major stock exchanges in the U.S.

  • Explain a variety of different investment vehicles, and the advantages and disadvantages of each.

  • Explain the process of purchasing stocks and the function of a broker.

  • Interpret stock data as published in news sources.

  • Define credit and identify several major sources.

  • Calculate finance charge, monthly payments, annual percentage rate, and the total cost of a credit purchase, given sufficient data.

  • Explain the concept of the time value of money.

  • Calculate future and present values of potential investments, given sufficient data.

  • Explain the consumer rights movement and describe major rights of consumers.

  • Explain the purpose of advertising and analyze various advertising techniques.

Standards:

NCSS

I, V-VII, & IX

C3

D2.Eco.10.9-12,

D2.Eco.12.9-12

Suggested Activities, Materials, and Resources:

  • Bank guest speaker


Compound Interest

Graduate - Level Competency:

Economics

GL.8 The learner will assess personal, national, and global economic decisions by applying financial literacy knowledge and economic principles in various systems in order to make informed budgetary decisions.

Course/Grade Competency:

ES.4 The learner will apply and evaluate the personal effect of banking practices to real-life examples, as it relates to compound interest, saving, investing, retirement, credit cards, debt, payday loans, and large purchases, in order to make more informed decisions.

Content Objectives:

The learner will:

    • Compare various ways to save for specific long-term and short-term goals.

    • Understand credit ratings and ways to establish good credit.

    • Calculate interest at various rates (e.g., $10,000 at 5%).

Standards:

NCSS

V-VI

C3

D2.Eco.2.9-12

Suggested Activities, Materials, and Resources:


Employment

Graduate - Level Competency:

Economics

GL.8 The learner will assess personal, national, and global economic decisions by applying financial literacy knowledge and economic principles in various systems in order to make informed budgetary decisions.

Course/Grade Competency:

ES.5 The learner will explore and evaluate the long-term economic impact of pursuing specific careers, colleges, and jobs of interest to them, in order to help them make decisions about their future.

Content Objectives:

The learner will:

    • Complete a search for jobs that do and do not require a high school diploma, and search for jobs that require post-secondary education. The learner will then compare and contrast the minimum education requirements, average pay, and near/distant outlook for each job.

    • Develop a resume, cover letter, and/or fill out a job application.

    • Review and practice interview skills.

    • Explore labor unions such as the Operating Engineers, Plumbers and Pipefitters, and Alaska Teamsters.

    • Understand collective bargaining.

    • Analyze the role of unions in the labor market.

    • Explain the major features of a typical labor contract.

    • Outline the steps in a typical grievance process.

    • Research the Free Application for Federal Student Aid (FAFSA), and understand what information is required to complete the FAFSA.

Standards:

NCSS

I & IV-V

Suggested Activities, Materials, and Resources:


Taxes

Graduate - Level Competency:

Economics

GL.8 The learner will assess personal, national, and global economic decisions by applying financial literacy knowledge and economic principles in various systems in order to make informed budgetary decisions.

Course/Grade Competency:

ES.6 The learner will understand the different types of taxes (e.g., sales, income, and property) at the local, state, and federal levels by looking at ways governments collect and allocate public funds, in order to make informed political and economic decisions.

Content Objectives:

The learner will:

    • Apply knowledge of different types of taxes to explain possible ways to fund their proposed legislation and/or policy, and the implications of each proposal.

    • Identify types of taxes that are collected in their local community, and how the funds are spent.

    • Complete a personal individual tax form.

    • Define fiscal policy.

    • Explore various taxes, including property, federal, sales, and state taxes.

Standards:

NCSS

V-VI & X

C3

D2.Eco.7.9-12,

D2.Civ.13.9-12

Suggested Activities, Materials, and Resources:


Budgeting

Graduate - Level Competency:

Economics

GL.8 The learner will assess personal, national, and global economic decisions by applying financial literacy knowledge and economic principles in various systems in order to make informed budgetary decisions.

Course/Grade Competency:

ES.7 The learner will apply the concepts of opportunity costs and needs versus wants, and create a variety of budgets that include earned income, purchases, savings, and investments, in order to make more informed economic decisions.

Content Objectives:

The learner will:

    • Explore the following topics and create their own budget that includes income, purchases, savings, and investments:

        • Weekly menu planning and spending budget.

        • Costs of owning a car.

        • Rent at furnished versus unfurnished apartments.

Standards:

NCSS

IV, VII, & XI

C3

D2.Eco.5.9-12

Suggested Activities, Materials, and Resources:


Global Economics

Graduate - Level Competency:

Discourse

GL.7 The learner will demonstrate the ability to collaborate and engage in constructive public and civil discourse by defending and listening to differing positions on topical issues, trends, and events in order to engage in crucial conversations with people of varying perspectives.

Course/Grade Competency:

ES.8 The learner will defend their economic decisions based on their knowledge of the effects of those decisions on the global community, in order to understand their impact on the world.

Content Objectives:

The learner will:

    • Explore the economic impact of globalization.

    • Understand trade agreements and tariffs, and the impact these have on product prices.

    • Analyze the role of natural resources on the economy.

    • Understand economies of scale and the impact this has on the global economy.

Standards:

NCSS

I-X

C3

D2.Eco.11.9-12,

D2.Eco.14-15.9-12,

D2.Civ.1.9-12,

D2.Civ.3.9-12,

D2.Civ.6.9-12,

D2.Geo.1.9-12,

D2.Geo.9.9-12,

D2.Geo.11.9-12,

D2.His.14.9-12

Suggested Activities, Materials, and Resources:


See the appendix for additional resources.