identifying goods and services and giving examples of each;
showing what happens when there are limited resources and unlimited wants and needs;
giving an example of the opportunity cost for an individual decision (for example, choosing to use money to go to the movies may result in not having enough money to eat at a restaurant).
giving examples of different economic incentives (for example, landowners are paid rent for the use of their land, people who work are paid a wage, people who save money are paid interest, and successful businesses such as a lemonade stand make a profit).
describing how consequences of economic choices may affect the future (for example, using allowance money today for ice cream and candy will not generate savings for a bike in the future);
identifying similar resources that can be used in a variety of ways (for example, a piece of vacant land can be used to build a office building, a park, a parking lot, a shopping mall or a soccer field).
identifying the three basic economic questions all economic systems must answer: (What goods and services will be produced? How will they be produced? For whom will they be produced?);
identifying different economic systems (for example, command, market, and traditional).
describing roles of consumers and producers in the U.S. economic system;
describing how the price of goods and services in our U.S. economic system is related to how much of a product or resource there is, and how many people want it.
recognizing that some goods and services are provided by the government (for example, firefighters, parks, police, and public schools);
explaining that government raises revenue by taxing and borrowing to pay for the goods and services it provides.
describing how voluntary exchange of goods and services affects all parties involved in the exchange (for example, by exchanging clothing for food both parties in the exchange have benefited);
describing the interdependence between households and businesses;
describing how the exchange of goods and services around the world creates interdependence among people in different places (for example, the production of a candy bar requires ingredients from around the world).
giving examples of barter as a simple form of exchange;
explaining the concept of money;
giving examples of the mediums of exchange in the U.S.;
recognizing that different countries use different currencies.