State Standard - Social Studies

Grade 5
Standard 4.0 Economics: Students will develop economic reasoning to understand the historical development and current status of economic principles, institutions, and processes needed to be effective citizens, consumers, and workers participating in local communities, the nation, and the world.
A. Scarcity and Economic Decision-making
1. Explain that people made choices because resources were limited relative to economic wants for goods and services in Colonial America
a. Identify the opportunity cost of economic decisions, such as whether or not to buy products on which British taxes were imposed
2. Analyze how limited economic resources were used to satisfy economic wants in Colonial America
a. Describe how limited resources and unlimited economic wants caused colonists to choose certain goods and services
b. Describe how available resources affected specialization and trade
c. Analyze how changing from a British colony to an independent nation affected economic resources, production, and economic wants
3. Analyze how technological changes affected production and consumption in Colonial America
a. Explain how the development of new products and new technologies affected the way people lived
b. Examine how technology has changed production such as wheat/grist mills
4. Analyze the consequences of specialized work on interdependence, trade, and economic growth
a. Analyze examples of regional specialization and how it contributed to economic growth through the colonies
b. Explain specialization and interdependence using the triangular trade routes
B. Economic Systems and the Role of Government in the Economy
1. Describe the types of economic systems in colonial America
a. Identify examples of tradition, such as the economic roles of men and women
b. Describe examples of command decisions, such as the imposition of the Stamp Act and the Tea Act
c. Analyze a market economy and give examples of how the colonial economy exhibited these characteristics such as private ownership and consumer choice
2. Describe the role of British government on the colonial economy
a. Explain how colonists were forced to change their purchasing habits based on the scarcity of goods imposed by taxes
b. Evaluate the trade-offs of British protectionism
3. Describe the role of money and barter in the colonial trade
a. Compare the benefits of a money economy to a barter economy


MSDE has developed a toolkit for these standards which can be found online at:


Date: 1/27/2015