Indiana Social Studies 8.E.2
The Standard
Explain how federal, state, and local governments are involved in the economy of the United States.
2026 Indiana Academic Standards: K-12 Social Studies
Teacher's field guide
What This Standard Means
What Students Need to Do
- Students identify how federal, state, and local governments collect taxes, pay for services, and set rules for businesses. They explain which level handles a decision and when governments work together.
What Mastery Looks Like
- Given a sample pay stub, sales receipt, and city budget, students can identify federal income tax, state sales tax, and local spending. They can explain how federal funds might help a state pay for a road.
Common Misconceptions
- Students may think the federal government pays for every public service, or that cities do not collect taxes. They may assume only one level of government can fund a project.
How to Assess It
- On an exit ticket, ask: Who might pay to repair a state highway, and where could that money come from? Name two government levels and explain each role.
Lesson moves
Ways to Teach It
Give groups mock federal, state, and city budgets; have them highlight taxes collected and services funded at each level.
Ask, 'Who might pay to repair a bridge connecting two states?' Have partners name two government roles and explain their choices.
Play 'Who Acts?' with cards for federal income taxes, state minimum wages, and city building permits; teams name the level and effect.
Show a sample pay stub, sales receipt, and property tax bill; have students mark which governments collect money from each.
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Printable 8.E.2 Worksheet
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Related Standards
- 3.C.3
Explain that the United States has three levels of government (i.e., local, state, and federal), and that each level has special duties and responsibilities.
- GE.5.1
Explain the role of the Federal Reserve in the U.S. economy, as well as the functions of its counterparts in other countries.
- GE.2.6
Explain and evaluate how and why government control influences businesses and individuals through laws and taxes.
- GE.2.4
Explain the fundamental role, if any, of government in the various economic systems.
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