Indiana Social Studies GE.1.3

Social StudiesGrades 9–12Basic Economic Concepts

The Standard

Explain incentives and how they affect choice.

2026 Indiana Academic Standards: K-12 Social Studies

Teacher's field guide

What Students Need to Do: Students identify what a person stands to gain or lose from a choice. They explain how a change in price, reward, penalty, or time might change a decision.
What Mastery Looks Like: A student can name the incentive in a situation and explain which choice it makes more appealing. They can explain why two people might respond differently to the same offer.
Common Misconceptions: Students may call the item someone chooses an incentive instead of naming the reward or cost that affects the choice. They may assume a reward guarantees everyone will act the same way.
How to Assess It: Exit ticket: A cafeteria cuts the price of fruit cups from $3 to $1. Name the incentive, explain one choice it might change, and say why some students might not change their choice.

Lesson moves

Give pairs ten paper tokens and two snack cards priced at six and eight tokens, then lower one price and compare their choices.
Ask: Would a $5 library late fee change when you return a book? Write why classmates might respond differently.
Play an incentive match game: pair four choice cards with a price cut, reward, fee, or shorter wait, then explain each match.
Post a $2 bus fare and an $8 parking fee, then ask students which option might appeal to a student driver and why.

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