Economics is the study of the production and distribution of goods and services. The field of economics focuses on how individuals and organizations, including governments, make economic choices, and examines the relationships between governments, markets, and various economic systems. Economic literacy comprises the idea of financial literacy: making good consumer decisions and using credit wisely. Economic and financial literacy for kindergarten and the elementary grades provides a foundation to build on for an understanding of economics in the middle grades, in high school, and beyond.
This unit will provide background knowledge on these topics, assist you with your review of economics in kindergarten and the elementary grades, and help you meet the following objectives.
- Determine ways that scarcity affects the choices made by governments and individuals.
- Compare and contrast characteristics and importance of currency.
- Identify and analyze the role of markets from production through distribution and consumption.
- Identify and analyze factors to consider when making consumer decisions.
- Analyze the economic interdependence between nations (e.g., trade, finance, movement of labor).
- Identify human, natural, and capital resources and evaluate how these resources are used in the production of good and services.
The focus of the National Council for the Social Studies theme of Production, Distribution, and Consumption for the early grades is on the learner being able to: give examples that show how scarcity and choice affect economic decisions; identify examples of private and public goods and services; describe how incentives, values, traditions, and habits influence economic decisions; explain and demonstrate the role of money in everyday life; and use concepts such as supply, demand, and price to help explain events in the community and nation.
