Economic Wants

ECONOMIC WANTS are desires that can be satisfied by consuming a good, service, or leisure activity. Examples:

The girl is satisfying a want by consuming a glass of lemonade.

Goods & Services

GOODS are objects people want.

This guy is selling his goods at a lemonade stand.

SERVICES are actions people do for someone else.

This airline is providing a service: advertising the lemonade stand.

Buy Lemonade!

Trade & Money

People TRADE (exchange) with each other to get goods and services. To make trade easier, people use MONEY.

People spend money to buy lemonade from the stand.

Scarcity

SCARCITY: you can’t have all the goods and services you want. Because of scarcity, people must make CHOICES

Examples: Two kids want to sell lemonade but there are only a few cans of frozen lemonade in the freezer. What should they do?

Opportunity Cost

When you make a decision, the most valuable alternative you give up is your opportunity cost.

The two kids decide to work together. The opportunity cost is that they don’t have their own stands.

Consequences

The choices we make have consequences. Sometimes our choices lead to unexpected consequences.

A good consequence of working together is that the kids had fun!

Entrepreneur

An ENTREPRENEUR is a creative thinker who uses skills to create a business to make a profit.

This boy is using his skills to create a lemonade business.

Incentives

INCENTIVES urge people to do MORE of a good thing &

less of a bad thing.The kids started their own lemonade stands for

the economic incentive of making money. A sale is an incentive to buy more lemonade. Sometimes a social incentive, to work together, is the best incentive.

Price

THE PRICE: what we pay when we buy a good or service or what we receive when we sell a good or service.

The buyers will pay 5 cents and the sellers will receive the price of 5 cents per glass of lemonade.

Producers

Producers are people who make goods or provide services.

The girls are the producers who made the lemonade. They are also the sellers.

Consumers

Consumers are people who buy goods and services.

The boy is a consumer because he is buying lemonade.

Profit

PROFIT = the difference between: the money people make and their costs of production.

The sellers hope to make more money than it costs to produce lemonade.

http://www.coolmath-games.com/lemonade/ http://www.lemonadestandgame.com/

Productive Resources

HUMAN RESOURCES are the people who work to produce goods and services. CAPITAL RESOURCES are tools or equipment used to make other goods or services. NATURAL RESOURCES are natures gifts used to produce.

What human resources (jobs) are necessary to make and sell lemonade? What capital resources are needed to make and sell lemonade? What natural resources and intermediate goods are used to make lemonade?

Human Resources

HUMAN RESOURCES are the people who work to produce goods and services. CAPITAL RESOURCES are tools or equipment used to make other goods or services. NATURAL RESOURCES are natures gifts used to produce.

What human resources (jobs) are necessary to make and sell lemonade? What capital resources are needed to make and sell lemonade? What natural resources and intermediate goods are used to make lemonade?

Capital Resources

HUMAN RESOURCES are the people who work to produce goods and services. CAPITAL RESOURCES are tools or equipment used to make other goods or services. NATURAL RESOURCES are natures gifts used to produce.

What human resources (jobs) are necessary to make and sell lemonade? What capital resources are needed to make and sell lemonade? What natural resources and intermediate goods are used to make lemonade?

Natural Resources

HUMAN RESOURCES are the people who work to produce goods and services. CAPITAL RESOURCES are tools or equipment used to make other goods or services. NATURAL RESOURCES are natures gifts used to produce.

What human resources (jobs) are necessary to make and sell lemonade? What capital resources are needed to make and sell lemonade? What natural resources and intermediate goods are used to make lemonade?

Intermediate Goods

HUMAN RESOURCES are the people who work to produce goods and services. CAPITAL RESOURCES are tools or equipment used to make other goods or services. NATURAL RESOURCES are natures gifts used to produce.

What human resources (jobs) are necessary to make and sell lemonade? What capital resources are needed to make and sell lemonade? What natural resources and intermediate goods are used to make lemonade?

Specialization

People SPECIALIZE when they produce or sell only some of the goods and services they consume, then trade with others to get more of the things they want.

Belle’s specializes in fashion. Party World specializes in party goods. The people who own these stores specialize and trade to get other goods and services.

$aving

SAVING = income after buying (-taxes)

Examples:Nancy plans to practice

consumption spending. She wants to save the money to buy a fan.

After she buys back the fan for her sister and doesn’t have enough saved for the fan, she practices saving.

When she receives the fan as a gift, she has all her saving left over

http://activities.macmillanmh.com/reading/treasures/

Peter’s Chair

Econ-cepts: wants, needs

Needs and Wants SS.K.E. 1.4 • What are the differences

between wants and needs?

Peter is upset when he sees that his parents have given his old chair to his new baby sister. He wants his chair. Does he need the chair? Does he use the chair anymore? What about his old bed?

http://www.brainpopjr.com/socialstudies/economics/needsandwants/preview.weml

http://www.youtube.com/watch?v=wd9YTEgvyaE

http://www2.scholastic.com/browse/collateral.jsp?id=482_type=Book_typeId=342

Apple Farmer Annie

Jobs SS.K.E.1.1• How do people earn money?

What types of jobs do people do? What do people need to do their jobs?

• How It’s Made: Apple Pie http://science.discovery.com/videos/how-its-made-food-and-drink/

• Other apple activities: • http://www.bestapples.com/kid

s/home.shtml

• http://www.virginiaapples.org/kids/

• How does Annie earn money? • What are the types of jobs she

does on the farm? • What jobs does she do when

she sets up her booth?• What tools and equipment

does she need to do her job?• What tools does she need to

make goods out of apples?

Little Red Hen

People need to make choices due to scarce resources.

What was scarce in the story? Help for the little red hen. (human capital)

What choice did the hen make?

*Do a decision tree

Opportunity cost is giving up one thing for another.

What was the opportunity cost for the other animals when they decided to not help the hen?

Compare and contrast Little Red Hen (Makes a Pizza) with the original from Project Gutenberg http://www.gutenberg.org/ebooks/18735

Rebus story of Little Red Hen http://www.enchantedlearning.com/stories/fairytale/littleredhen/story/

Florida DOE lesson plan-includes stick puppets. www.fldoe.org/earlylearning/pdf/TheLittleRedHenLessonPlan.pdf

EconEdLink lesson http://www.econedlink.org/lessons/index.php?lid=389&type=educator

Click Clack Moo: Cows That Type

People make choices because of scarce resources: What was scarce? What choices did the cows make? The famer? What were the consequences of the farmer’s decision? How did the cows respond to the incentive of blankets?

The literacy rate in Farmer Brown's barn goes up considerably once his cows find an old typewriter and begin typing. To the harassed farmer's dismay, his communicative cows quickly become contentious:

Dear Farmer Brown,The barn is very cold at night. We'd like some electric blankets.Sincerely,The Cows

When he refuses to comply with their demands, the cows take action. Farmer Brown finds another note on the barn door: "Sorry. We're closed. No milk today." Soon the striking cows and Farmer Brown are forced to reach a compromise, with the help of an impartial party--the duck. But this poor, beleaguered farmer's "atypical" troubles are not over yet!

• http://www.kidseconposters.com/keb/Title%20List%20Poster%20Set%20A/Economic%20Wants/Click%20Clack%20Moo%20Cows.htm

• http://pbskids.org/lions/cornerstones/click/story/hypertext/

Cook-a-Doodle-Doo

Give examples of how scarcity results in trade.

We always want more than we can get and productive resources (human, capital, natural) are always limited. Therefore because of this major economic problem of scarcity we usually choose the alternative that provides the most benefits with the least cost.

• The little red hen done right!• Big Brown Rooster and his

eager assistants.• What is scarce? Knowledge…• What are the human, natural,

and capital resources?http://www2.scholastic.com/browse/lessonplan.jsp?id=894

http://activities.macmillanmh.com/reading/treasures/stories/story_lessonlist/3204084.html

http://www.prometheanplanet.com/en/Resources/Item/75867/cook-a-doodle-doo

http://fcit.usf.edu/fcat5m/resource/lesplans/realless.htm

(recipes to reinforce fractions)

For More Info…

http://yumonomics.com