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SOL VA EPF Course 11-2009

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Standards of Learning: Virginia Economics & Personal FinanceApproved: November 17, 2009Source: EPF.1 The student will demonstrate knowledge of basic economic concepts and structures bydescribing how consumers, businesses, andgovernment decision makers face scarcity of resources and must make trade-offs and incur opportunity costs;explaining that choices oftenhave long-term unintended consequences;describing how effective decision making requires comparing the additional costs (marginal costs)and additional benefits (marginal benefits);identifying factors of production;comparing the characteristics of market, command, tradition, andmixed economies; andidentifying Adam Smith and describing the characteristics of a market economy. EPF.2 The student will demonstrate knowledge of the role of producers and consumers in a market economy bydescribing how consumers,producers, workers, savers, investors, and citizens respond to incentives;explaining how businesses respond to consumersovereignty;identifying the role of entrepreneurs;comparing the costs and benefits of different forms of business organization, including soleproprietorship, partnership, corporation, franchise, and cooperative;describing how costs and revenues affect profit and supply;describinghow increased productivity affects costs of production and standard of living;examining how investment in human capital, capital goods, andtechnology can improve productivity;describing the effects of competition on producers, sellers, and consumers;explaining why monopoliesor collusion among sellers reduces competition and raises prices; andillustrating the circular flow of economic activity. EPF.3 The student will demonstrate knowledge of the price system byexamining the laws of supply and demand and the determinants ofeach;explaining how the interaction of supply and demand determines equilibrium price;describing the elasticity of supply and demand;andexamining the purposes and implications of price ceilings and price floors. EPF. 4 The student will demonstrate knowledge that many factors affect income byexamining the market value of a worker’s skills andknowledge;identifying the impact of human capital on production costs;explaining the relationship between a person’s own human capitaland the resulting income potential; anddescribing how changes in supply and demand for goods and services affect income. EPF.5 The student will demonstrate knowledge of a nation’s economic goals, including full employment, stable prices, and economic growthbydescribing economic indicators, such as gross domestic product (GDP), consumer price index (CPI), and unemployment rate;describingthe causes and effects of unemployment, inflation, and reduced economic growth;describing the fluctuations of the business cycle;anddescribing strategies for achieving national economic goals. EPF.6 The student will demonstrate knowledge of the nation’s financial system bydefining the role of money; andexplaining the role offinancial markets and financial institutions. EPF.7 The student will demonstrate knowledge of how monetary and fiscal policy influence employment, output, and prices bydescribing thepurpose, structure, and function of the Federal Reserve System;describing government’s role in stabilizing the economy;describing sourcesof government revenue; andexplaining balanced budget, deficit, and national debt. EPF.8 The student will demonstrate knowledge of the role of government in a market economy byidentifying goods and services provided bygovernment to benefit society;identifying the role the government plays in providing a legal structure to protect property rights and enforcecontracts;providing examples of government regulation of the market;explaining that governments redistribute wealth; andexplaining thattaxes and fees fund all government-provided goods and services. EPF.9 The student will demonstrate knowledge of the global economy byexplaining that when parties trade voluntarily, allbenefit;distinguishing between absolute and comparative advantage;distinguishing between trade deficit and trade surplus;explainingexchange rates, and the impact of a strong dollar and weak dollar on economic decisions;describing the costs and benefits of tradebarriers;describing the effects of international trade agreements and the World Trade Organization; andexplaining growing economicinterdependence. ...more

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Page two Standards of Learning: Virginia Economics & Personal FinanceApproved: November 17, 2009Source: EPF.10 The student will develop consumer skills byexamining basic economic concepts and their relation to product prices and consumerspending;examining the effect of supply and demand on wages and prices;describing the steps in making a purchase decision, including theroles of marginal benefit and marginal cost;determining the consequences of conspicuous consumption;describing common types ofcontracts and the implications of each;demonstrating comparison-shopping skills;maintaining a filing system for personal financialrecords;examining the impact of advertising and marketing on consumer demand and decision making in the global marketplace;accessingreliable financial information from a variety of sources;explaining consumer rights, responsibilities, remedies, and the importance of consumervigilance; andexamining precautions for protecting identity and other personal information. EPF.11 The student will demonstrate knowledge of planning for living and leisure expenses bycomparing the costs and benefits of purchasingvs. leasing a vehicle;comparing the advantages and disadvantages of renting vs. purchasing a home;describing the process of rentinghousing;describing the process of purchasing a home;calculating the cost of utilities, services, maintenance, and other housing expenses;andevaluating discretionary spending decisions. EPF.12 The student will demonstrate knowledge of banking transactions bycomparing the types of financial institutions;examining howfinancial institutions affect personal financial planning;evaluating services and related costs associated with personal banking;differentiatingamong types of electronic monetary transactions;preparing all forms necessary for opening and maintaining a checking and a savingsaccount;reconciling bank statements;comparing costs and benefits of online and traditional banking; andexplaining how certain historicalevents have influenced the banking system and other financial institutions. EPF.13 The student will demonstrate knowledge of credit and loan functions byevaluating the various methods of financing apurchase;analyzing credit card features and their impact on personal financial planning;identifying qualifications needed to obtaincrediidentifying basic provisions of credit and loan laws;comparing terms and conditions of various sources of consumer credit;identifyingstrategies for effective debt management, including sources of assistance;explaining the need for a good credit rating;comparing the costsand conditions of secured and unsecured loans; andcomparing the types of voluntary and involuntary bankruptcy and the implications of each. EPF.14 The student will demonstrate knowledge of the role of insurance in risk management byevaluating insurance as a risk managementstrategy;distinguishing among the types, costs, and benefits of insurance coverage, including automobile, life, property, health, andprofessional liability; andexplaining the roles of insurance in financial planning. EPF.15 The student will demonstrate knowledge of income earning and reporting byexamining how personal choices about education,training, skill development, and careers impact earnings;differentiating among sources of income;calculating net pay;investigating employeebenefits and incentives; andcompleting a standard W-4 form. EPF.16 The student will demonstrate knowledge of taxes by describing the types and purposes of local, state, and federal taxes and the wayeach is levied and used;exploring how tax structures affect consumers, producers, and business owners differently;computing local taxes onproducts and services;examining potential tax deductions and credits on a tax return;explaining the content and purpose of a standard W-2form; andexplaining the similarities and differences between state and federal taxation of inheritances. EPF.17 The student will demonstrate knowledge of personal financial planning byidentifying short-term and long-term personal financialgoals;identifying anticipated and unanticipated income and expenses;examining components and purposes of a personal net worthstatement;developing a personal budget;investigating the effects of government actions and economic conditions on personal financialplanning; andexplaining how economics influences a personal financial plan. EPF.18 The student will demonstrate knowledge of investment and savings planning bycomparing the impact of simple interest vs. compoundinterest on savings;comparing and contrasting investment and savings options;explaining costs and income sources forinvestments;examining the fundamental workings of Social Security and the system's effects on retirement planning;contrasting alternativeretirement plans; anddescribing how the stock market works.