State Standard - Social Studies

Grade 7
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. Analyze the decisions that people made because resources were limited relative to economic wants for goods and services in contemporary world regions
a. Identify the opportunity cost of economic decisions made by individuals, businesses, and governments such as decisions about investing in education
2. Analyze how scarcity of economic resources affects economic choices in contemporary world regions
a. Describe how goals of countries affect the use of resources in the pursuit of economic growth, and sustainable development
b. Identify tradeoffs made in economic decisions by producers and consumers
c. Explain how available resources affect specialization and trade
3. Analyze how technological changes have affected the consumption and production in the contemporary world
a. Give examples of how technology has changed consumption of goods and services, such as the development of computers
b. Examine why technology has changed job skills and the influenced productivity
4. Compare the levels of specialization and economic development in different parts of the contemporary world
a. Analyze examples of specialization that result from economic resources
b. Describe the standard of living and the quality of life in a world region using data, such as Gross National Product (GNP), Gross Domestic Product (GDP), per capita income and the Human Development Index (HDI)
c. Identify factors that have influenced economic development in various regions, such as individuals, corporations, natural resources, technology, military power, population growth, international organizations, infrastructure and public health issues
B. Economic Systems and the Role of Government in the Economy
1. Evaluate the types of economic systems in countries throughout the contemporary world
a. Examine how different economic systems, traditional, command, market, and mixed answer the basic economic question of what, how, and for whom to produce
b. Describe examples of decisions in (traditional economies, such as the economic roles of men and women
c. Describe examples of command modern economies, such as government ownership of land and other resources
2. Analyze the role of government in the economies of contemporary societies
a. Explore how government spending and taxation influence an economy's ability to grow and provide jobs and services
b. Evaluate the trade-offs of government regulations
c. Analyze the ways that governments can help or impede economic activity, such as providing a stable monetary system, protecting property rights, maintaining infrastructure and providing public goods and services
d. Examine the impact of regulatory agencies in different countries, such as consumer behavior, air traffic management, and environmental protection
3. Describe the money and banking systems in various countries in the contemporary world
a. Explain why a stable money and banking system is necessary for an economy to grow and prosper


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


Date: 1/27/2015