A. Economic Literacy

1. Distinguish between goods (e.g., objects) and services (e.g., activities).
2. Distinguish between a want and a need and explain how to choose needed goods and services.
3. Explain the three functions of money in the economy.
   • Medium of exchange (e.g., buying)
   • Measure of value (e.g., price comparison)
   • Store of value (e.g., saving)
4. Discuss how natural, human, and capital resources are used to produce goods and to provide services.
5. Explain that prices are the money value of goods and services and that prices change as a result of supply and demand.
6. Define consumers as buyers and producers as workers and sellers.
7. Explain that people can improve their ability to earn income by gaining new knowledge, skills, and experiences.
8. Describe how to earn and save money in order to purchase a needed or desired item.

B. Economics and Society

1. Explain that some essential goods and services are provided by the government, such as roads, schools, parks, police, and fire protection.
2. Describe products and services that are developed, manufactured, or grown in New Jersey.