ABSTRACT
This chapter begins by learning about issues related to economic literacy, and then transition to a more focused consideration of the ways that microeconomics and macroeconomics influence the practice of school leadership. It covers concepts such as supply and demand, cost-benefit analysis, budget management, facilities, expenditures, outsourcing and the knowledge industry. The chapter focuses part of argument on six of the several distinct global "competencies"-identified in earlier work by the authors within the context of innovation economy. The very nature of education is changing because of the revolutionary nature of a knowledge economy. Industrial growth is now receding in favor of knowledge productivity. School leaders should be aware of the economic situations of their students and community if they are to provide effective and relevant educational opportunities. Teaching and leading schools in communities of poverty and affluence can look very different, both in terms of resources and in terms of the quality and nature of education delivered.
