Standards of Learning: Virginia Economics & Personal FinanceApproved: November 17, 2009Source: http://www.doe.virginia.gov/testing/sol/standards_docs/economics_personal_finance/index.shtml EPF.1 The student will demonstrate knowledge of basic economic concepts and structures bydescribing 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; andidentifying 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 bydescribing 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; andillustrating the circular flow of economic activity. EPF.3 The student will demonstrate knowledge of the price system byexamining 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;andexamining the purposes and implications of price ceilings and price floors. EPF. 4 The student will demonstrate knowledge that many factors affect income byexamining 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; anddescribing 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 growthbydescribing 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;anddescribing strategies for achieving national economic goals. EPF.6 The student will demonstrate knowledge of the nation’s financial system bydefining the role of money; andexplaining 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 bydescribing thepurpose, structure, and function of the Federal Reserve System;describing government’s role in stabilizing the economy;describing sourcesof government revenue; andexplaining balanced budget, deficit, and national debt. EPF.8 The student will demonstrate knowledge of the role of government in a market economy byidentifying 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; andexplaining thattaxes and fees fund all government-provided goods and services. EPF.9 The student will demonstrate knowledge of the global economy byexplaining 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; andexplaining growing economicinterdependence. ...more
Page two Standards of Learning: Virginia Economics & Personal FinanceApproved: November 17, 2009Source: http://www.doe.virginia.gov/testing/sol/standards_docs/economics_personal_finance/index.shtml EPF.10 The student will develop consumer skills byexamining 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; andexamining precautions for protecting identity and other personal information. EPF.11 The student will demonstrate knowledge of planning for living and leisure expenses bycomparing 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;andevaluating discretionary spending decisions. EPF.12 The student will demonstrate knowledge of banking transactions bycomparing 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; andexplaining how certain historicalevents have influenced the banking system and other financial institutions. EPF.13 The student will demonstrate knowledge of credit and loan functions byevaluating 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; andcomparing 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 byevaluating insurance as a risk managementstrategy;distinguishing among the types, costs, and benefits of insurance coverage, including automobile, life, property, health, andprofessional liability; andexplaining the roles of insurance in financial planning. EPF.15 The student will demonstrate knowledge of income earning and reporting byexamining how personal choices about education,training, skill development, and careers impact earnings;differentiating among sources of income;calculating net pay;investigating employeebenefits and incentives; andcompleting 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; andexplaining the similarities and differences between state and federal taxation of inheritances. EPF.17 The student will demonstrate knowledge of personal financial planning byidentifying 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; andexplaining how economics influences a personal financial plan. EPF.18 The student will demonstrate knowledge of investment and savings planning bycomparing 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; anddescribing how the stock market works.