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USA National Standards for Concept "Trade-offs"

NATIONAL STANDARD 2 - DECISION MAKING: Students will understand that:
Effective decision making requires comparing the additional costs of alternatives with the additional benefits. Many choices involve doing a little more or a little less of something: few choices are "all or nothing" decisions.

Students will be able to use this knowledge to: Make effective decisions as consumers, producers, savers, investors, and citizens.

You can find additional online lessons on US Standard 2 from the Council for Economic Education Website.



NATIONAL STANDARD 6 - SPECIALIZATION: Students will understand that: When individuals, regions, and nations specialize in what they can produce at the lowest cost and then trade with others, both production and consumption increase.

Students will be able to use this knowledge to: Explain how they can benefit themselves and others by developing special skills and strengths.

You can find additional online lessons on US Standard 6 from the Council for Economic Education Website.



NATIONAL STANDARD 15 - ECONOMIC GROWTH: Students will understand that: Investment in factories, machinery, new technology, and in the health, education, and training of people stimulates economic growth and can raise future standards of living.

Students will be able to use this knowledge to: Predict the consequences of investment decisions made by individuals, businesses, and governments.

Students should recognize that by saving and investing money today they can benefit in the future by being able to buy such things as a car, a compact disk player, a trip to an amusement park, or other things they want that cost more than what they can afford immediately. They will face similar trade-offs throughout their lives. As adults they will save for many things other than toys and vacations including housing, medical expenses, taxes, household and automobile repairs, their children's education, and their own retirement. Savings deposited in banks and other financial institutions earn interest because those savings are loaned to businesses that want to invest in capital goods, or to people who are willing to pay higher interest rates to purchase homes, cars, or other things now rather than later. The new physical capital will, in turn, increase production and promote faster economic growth.

Businesses, governments, and other organizations face decisions similar to those confronting individuals: future benefits that arise from saving and investing today make it worthwhile to sacrifice some current spending. Knowing this will help students understand the various investment and dividend programs adopted by different corporations, as well as public policies involving taxation, spending programs, and investment in infrastructure, education, and other things that will increase future standards of living. It will help them appreciate that a better life in the future often requires patience and sacrifice in the present. It will also help them understand the importance of personal investment in education and training, and of business investments.

You can find additional online lessons on US Standard 15 from the Council for Economic Education Website.