Standard 4 : Role of Incentives
People respond predictably to positive and negative incentives.
Standard 11 : Role of Money
Money makes it easier to trade, borrow, save, invest, and compare the value of goods and services.
Standard 16 : Role of Government
There is an economic role for government in a market economy whenever the benefits of a government policy outweigh its costs. Governments often provide for national defense, address environmental concerns, define and protect property rights, and attempt to make markets more competitive. Most government policies also redistribute income.
Standard 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.
Standard 19 : Unemployment and Inflation
Unemployment imposes costs on individuals and nations. Unexpected inflation imposes costs on many people and benefits some others because it arbitrarily redistributes purchasing power. Inflation can reduce the rate of growth of national living standards because individuals and organizations use resources to protect themselves against the uncertainty of future prices.