NCEE Standard 1 : Scarcity
Productive resources are limited. Therefore,
people can not have all the goods and services they want; as a result, they must
choose some things and give up others.
Standard 3 : Allocation of Goods
Different methods can be used to allocate goods and services.
People acting individually or collectively through government, must choose which
methods to use to allocate different kinds of goods and services.
concepts: Economic Systems, Market Structure, Supply, Command Economy, Market
Economy, Traditional Economy
Standard 4 : Role of Incentives
respond predictably to positive and negative incentives.
Standard 7 :
Markets - Price and Quantity Determination
Markets exist when buyers and
sellers interact. This interaction determines market prices and thereby allocates
scarce goods and services.
Related concepts: Market Structure, Markets,
Price Floor, Price Stability, Quantity Demanded, Quantity Supplied, Relative Price,
Standard 8 : Role of Price in Market System
send signals and provide incentives to buyers and sellers. When supply or demand
changes, market prices adjust, affecting incentives.
Non-price Determinants, Price Floor, Price Stability, Supply, Determinants of
Demand, Determinants of Supply, Law of Demand, Law of Supply, Price Ceiling, Substitute
Standard 11 : Role of Money
Money makes it easier
to trade, borrow, save, invest, and compare the value of goods and services.
concepts: Exchange, Money Management, Money Supply, Currency, Definition of Money,
Money, Characteristics of Money, Functions of Money
Standard 12 : Role
of Interest Rates
Interest rates, adjusted for inflation, rise and fall
to balance the amount saved with the amount borrowed, which affects the allocation
of scarce resources between present and future uses.
Related concepts: Interest
Rate, Monetary Policy, Real vs. Nominal, Risk, Investing, Savers, Savings
14 : Profit and the Entrepreneur
Entrepreneurs are people who take the
risks of organizing productive resources to make goods and services. Profit is
an important incentive that leads entrepreneurs to accept the risks of business
Related concepts: Taxation, Costs, Costs of Production, Entrepreneur,
Risk, Taxes, Cost/Benefit Analysis, Innovation, Entrepreneurship, Inventors
15 : Growth
Investment in factories, machinery, new technology, and in
the health, education, and training of people can raise future standards of living.
Related concepts: Incentive, Interest Rate, Opportunity Cost, Production,
Technological Changes, Trade-off, Trade-offs among goals, Human Capital, Intensive
Growth, Investment, Physical Capital, Productivity, Risk, Standard of Living,
Economic Efficiency, Economic Equity, Economic Freedom, Economic Growth, Economic
Security, Investing, Business, Businesses and Households, Factors of Production,
Health and Nutrition, Savers, Savings, Stock Market
Standard 17 : Using
Cost/Benefit Analysis to Evaluate Government Programs
Costs of government
policies sometimes exceed benefits. This may occur because of incentives facing
voters, government officials, and government employees, because of actions by
special interest groups that can impose costs on the general public, or because
social goals other than economic efficiency are being pursued.
Cost/Benefit Analysis, Benefit, Costs, Special Interest Group, Barriers to Trade
18 : Macroeconomy-Income/Employment, Prices
A nation's overall levels of
income, employment, and prices are determined by the interaction of spending and
production decisions made by all households, firms, government agencies, and others
in the economy.
Related concepts: Gross Domestic Product (GDP), Macroeconomic
Indicators, Nominal Gross Domestic Product (GDP), Per Capita Gross Domestic Product
(GDP), Potential Gross Domestic Product (GDP), Real Gross Domestic Product (GDP),
Standard 20 : Monetary and Fiscal Policy
government budgetary policy and the Federal Reserve System's monetary policy influence
the overall levels of employment, output, and prices.
Inflation, National Debt, Tools of the Federal Reserve, Discount Rate, Federal
Budget, Fiscal Policy, Monetary Policy, Open Market Operations, Reserve Requirements,
Budget, Budget Deficit, Central Banking System, Budget Surplus, Causes of inflation