Curriculum ForumBusiness Education Standards
Economics & Personal Finance
THE AMERICAN ECONOMY is based on a private enterprise system in which the millions of individual choices made by consumers, workers, and citizens, in sum, affect the decisions made by business owners and government officials.
The preservation and effectiveness of such a system depends on the ability of individuals to make wise economic decisions related to their personal financial affairs, the successful operation of organizations, and the economic activities of the country. To make these informed decisions, individuals must understand how the system operates as well as their role in the system.
The concepts contained in these standards are important for the successful management of personal financial and business activities. They link to basic economic concepts that all students should master, such as the following:
- scarcity, choice, and opportunity costs;
- economic systems, institutions, and incentive;
- exchange, money, and interdependence;
- markets, prices, and competition;
- supply and demand;
- the roles of consumers, governments, and citizens.
The growing emphasis on financial literacy has highlighted the need for students to learn how to navigate the financial decisions they must make and how to make informed decisions related to managing finances and budgeting, saving and investing, living independently, earning and reporting income, buying goods and services, using credit, banking, and protecting against risk. The standards reflect this emphasis.
Knowing, understanding, and applying these concepts offers the necessary analytical tools for addressing economic issues, both personal and societal. Understanding economic principles and developing sound financial literacy skills provide the basis for responsible citizenship, financial solvency, and career success.
I. Allocation of Resources
Achievement Standard: Assess opportunity costs and trade-offs involved in making choices about how to use scarce economic resources.
II. Economic Systems
Achievement Standard: Explain why societies develop economic systems, identify the basic features of different economic systems, and analyze the major features of the U.S. economic system.
III. Economic Institutions and Incentives
Achievement Standard: Analyze the role of core economic institutions and incentives in the U.S. economy.
IV. Markets and Prices
Achievement Standard: Analyze the role of markets and prices in the U.S. economy.
V. Market Structures
Achievement Standard: Analyze the different types of market structures and the effect they have on the price and the quality of the goods and services produced.
Achievement Standard: Explain the importance of productivity and analyze how specialization, division of labor, investment in physical and human capital, and technological change affect productivity and global trade.
VII. The Role Of Government
Achievement Standard: Analyze the role of government in economic systems, especially the role of government in the U.S. economy.
VIII. Global Economic Concepts
Achievement Standard: Examine the role of trade, protectionism, and monetary markets in the global economy.
IX. Aggregate Supply and Aggregate Demand
Achievement Standard: Analyze how the U.S. economy functions as a whole and describe selected macroeconomic measures of economic activity.
I. Personal Decision Making
Achievement Standard: Use a rational decision-making process as it applies to the roles of citizens, workers, and consumers.
II. Earning and Reporting Income
Achievement Standard: Identify various forms of income and analyze factors that affect income as a part of the career decision-making process.
III. Managing Finances and Budgeting
Achievement Standard: Develop and evaluate a spending/savings plan.
IV. Saving and Investing
Achievement Standard: Evaluate savings and investment options to meet short- and long-term goals.
V. Buying Goods and Services
Achievement Standard: Apply a decision-making model to maximize consumer satisfaction when buying goods and services.
VI. Banking and Financial Institutions
Achievement Standard: Evaluate services provided by financial deposit institutions to transfer funds.
VII. Using Credit
Achievement Standard: Analyze factors that affect the choice of credit, the cost of credit, and the legal aspects of using credit.
VIII. Protecting Against Risk
Achievement Standard: Analyze choices available to consumers for protection against risk and financial loss.
From the National Standards for Business Education © 2007 by the National Business Education Association, 1914 Association Drive, Reston, VA 20191.