View
4
Download
3
Category
Tags:
Preview:
DESCRIPTION
PPT
Citation preview
Economics4th Grade
1
Wants vs. Needs
Economic Wants: Desire that can be satisfied by consuming a good or service
Goods & Services
Goods: Something that people want that they can touch or hold
Food, clothes, books, toys
Services: An action that someone does for you
Haircuts, mail delivery
Producers & Consumers
Advertising
http://www.cozi.com/images/partners_advertisers_sampleofavertisers.jpg
Natural Resources
Natural resources are things that we get from nature.
Air, water, soil, plants, minerals and wild animals are examples of natural resources
Natural resources are used to produce goods and services
All production can be traced back to natural resources (Examples: Sun, water, land for growing cotton to make your shirt, oil for plastic buttons)
Name the Natural Resources in the Picture
Air
Soil
Sun
Rocks
Plants
Water
Natural Resources are Scarce!
Natural resources considered scarce because to freely available to people in unlimited quantities.
They have a price!
http://ed.ted.com/featured/Vs2D6GfT
Overfishing video
Who owns natural resources?
People own many natural resources (land, forests, lacked)
Some are owned by governments
Some are owned by no one (example: the sun, oceans, air)
What are some examples of natural resources used to make goods?
Goods are things that things that people produce that you can touch and feel.
Examples of goods are things like baseballs, candy, shoes, toys, jeans, cars
Renewable or Non-Renewable?
A tree is a renewable resource
Diamonds and fossil fuels are non-renewable resources
What are some ways to be a good steward of natural resources?
Proper care of water and forest resources, recycling and reusing things
Why is pollution and overuse of natural resources a problem (especially when they are not privately owned)?
People act in their own self interest, tend to take care of what they own and overuse and abuse what they do not
Human Resources
Human resources are the people who work to produce goods and services
People need education and training to learn the skills to do their work well
Examples: baker, teacher, artist, dentist, mail carrier, veterinarian, seamstress, builder
What skills do human resources need?
Where do people acquire the skills (capital resources) they need for work?
When do kids become human resources?
Human resources at your school?
Capital Resources
Capital resources are the tools, machines, equipment, and buildings that help you produce goods or services
Man-made items used to produce a good or service
They make production much easier
What capital resources are used in your classroom and school?
Pencils, scissors, nails, tools, machines, equipment
Productive Resources
Productive resources are the natural, human, and capital resources that are used to produce goods and services.
Every country has productive resources.
People use productive resources (natural, human, capital) to produce goods and services
What are the natural, human, and capital resources used to make Hershey’s Chocolate kisses?
The Life of a Water Bottle
Good: Water Bottle
Productive resources used to produce the good
How is a water bottle created?
Life cycle of a water bottle
Products Used to Produce Other Products
Apples are often final products that consumers buy
Apples can also be a productive resource used to make other products
Products that are used as productive resources to produce other products are called intermediate goods
Examples: Sugar used to make donuts, cookies, bread, cereal
Applesauce, Apple Juice, Apple Pie, Candy Apples
Scarcity
Not being able to have everything you want
Scarcity forces people to make choices because there aren't’t enough goods and services to satisfy unlimited wants
Goods and Services that are more scarce usually cost more
Time and Space can be scarce
Space: not enough space in your car for your luggage and other items
Time: not enough time to go to the football game and also do your homework
All purchased items/goods are considered “scarce” because they are made with scare productive resources and have a price. They are not freely available.
It is scarce if it has a price. If there are not enough for people to have all that they want at a price of zero
The price tells how scarce an item/product is compared to other items.
Things that are not considered scarce: items freely available like sand at the beach or sunshine
Scarcity Problems and Situations
Why is land so expensive in New York City? It is extremely scares - lots of people want the land and it is very limited
Business that provide scarce services
Electricity
Visit to the Doctor
Things that are not scarce
Air you are breathing
Sand at the beach
Sunshine
Scarcity and PriceSome things are “more scarce” than others
Goods and services that are more scarce have a higher price.
Estimate the price of each good….
Bottle of water
Pair of shoes
Computer
Tank of Gas
Why do these prices differ?
Opportunity Cost
Because of scarcity, children and adults can’t have all the things they want
They have to make choices
When we choose between two things, the thing we give up (don’t choose) is our opportunity cost
Decisions, Decisions!Choices may have good and bad points that you should consider when choosing
Your parents tell you that you can get a gaming system for your birthday.
Choices: Xbox, PlayStation, or Wii
Why can’t you purchase both? (Scarcity of money)
What points would you consider when choosing?
What is your opportunity cost?
TradeLet’s make a deal!
People trade with each other to get goods and services they want
When people trade without using money, it’s called a barter
When the trade is voluntary, they both expect to be better off - there is not a winner and a loser
I will cut your hair if you mow my lawn
What must be true before two people will trade/barter?
Each person must want what the other person has and be willing to trade for it
Who benefits from a trade or exchange and why?
Both people benefit. Each gives up something they value less for something they value more.
Why is trade so important?
If people didn’t trade, they would have to produce all the goods and services they wanted - almost impossible!
Why is barter often difficult?
You may not want what other person has, but they want what you have
That’s why we use money - to make trade easier
Trading and bartering on the American frontier
Money was scarce
Traders used items like salt, nails, bullets, and guns to trade with Native Americans for furs (which were in great demand in Europe)
Examples of Trades
Trading in sports
Trading with other countries
Interdependence: When people or nations depend on one another to provide the goods and services they want
Trading baseball cards
Money & CoinsPeople use money to help them trade
Using money is easier than bartering
Money called “currency”
Paper bills and coins are the two types of currency
Paper money has pictures of past presidents and famous Americans on the front of each bill
Paper money currently comes in the following amounts: $1, $2, $5, $10, $20, $50, $100
Where does money come from?
Issued by the U.S. Treasury
Currency made by the Bureau of Engraving and Printing
Coins by the U.S. mint
People can’t make their own money (counterfeit money is against the law)
Money is difficult to counterfeit
http://www.theatlantic.com/video/index/278980/what-is-money/
What is money? (video)
A Day in the Life of a Dollar Bills
• http://www.youtube.com/watch?v=kn32vavZqvg
Who’s on the U.S. Bills?• George Washington
• Abraham Lincoln
• Alexander Hamilton
• Andrew Jackson
• Ulysses Grant
• Benjamin Franklin
• www.moneyfactory.com
How We Get Money
How We Use Money
1. Spend
2. Save
3. Give
Giving• Experience the joy of giving
• Giving vocabulary
– Donation
– Charitable
– Charity
– Volunteer
– Contribute
– Tithe
Sales Tax
• When you purchase goods and services, you usually have to pay a sales tax on the amount your purchase
• If you pay $100 for a bicycle and sales tax rate is 6%, you will pay $6.00 extra in sales tax
• Receipt example
• Don’t always have to pay sales tax on every they buy…
– Depending on state some goods and services are exempt from sales taxes (examples: food items, medicines, certain services, out of state Internet purchases)
• Online sales tax - not one but debate over future
• Minnesota - essentials don’t get taxed
• Tax free shopping days
• Where does the sales tax go?
– Store owner pays it to the state or local government
– Taxes pay for public services
• schools, roads, private businesses that provide these (road building company), parks, bridges, teachers salaries, police protection, fire station, public library
– Sales Tax in Iowa
Keeping Money Safe• Many places to keep your money safe
• Keep it in your pocket, under your mattress, piggy bank, pocket, purse, wallet, at a bank, or have a friend or relative keep it for you (mom or dad)
• Bank is usually very safe place to keep your money
– Safe from thieves, fire, and deposits insured by FDIC
– Where you decide to keep it depends on how you will use the money
• Short term or long term goal?
• Shopping soon to spend it?
• Checking or savings account
• Stock market
• Saving for college
• Saving for a video game
• Shopping withal friend
• Saving for your mom’s birthday present
Banks• Banks offer variety of goods and services to consumers
• open a checking or savings account
• purchase personal checks
• deposit/withdraw money from accounts from teller or ATM machine
• cash checks
• borrow money
• rent safety deposit box
• buy savings bonds
• buy stocks and mutual funds
• Human resource jobs at bank: teller, manager, loan officer, secretary, security guard
Recommended