Economics

Objectives:

• 2.E.1.1 Give examples of ways in which businesses in the community meet the needs and wants of consumers.

• 2.E.1.2 Explain the roles and impact producers and consumers have on the economy.

• 2.E.1.3 Summarize the concept of supply and demand.

• 2.E.1.4 Explain why people and countries around the world trade for goods and services.

• 2.E.1.5 Explain how money is used for saving, spending, borrowing and giving.

• 2.E.1.6 Summarize the role of financial institutions relative to savings.

TUESDAY: NEEDS & WANTS

What is the difference between someone's needs and their wants?

Take a moment to think through what you want.

Now, think about what you need.

Check out this resource from Brain Pop, Jr. to hear the definition of needs and wants:

Now that you've watched the video, make a list of what you want and what you need. As a reminder, look at these definitions of wants and needs:

You can write your list on a piece of paper or make a comment on this blog post!

Once you have a clear idea of what you want and need, think about where those things come from. You may have gotten a candy bar from a parent, but where does the candy bar come from? You may have food in your refrigerator, but where is it before it goes into your fridge?

In our country, we have a market economy. That means that businesses provide goods and services based on what people need or want.

Do you remember the difference between a good and a service? Try picking between a good and service for each picture below:

How did you do? Here is a reminder of the definition of goods and services:

Need a refresher on goods and services? Check out this video:

Thinking about the goods and services we want and need, consider the businesses that you and your family shop at. Which provide goods? Which provide services? Do some only provide what you need or want? Do some provide for both your wants and needs?

Choose one of those businesses and think about what they need and want. What does a business need to stay open? What does a business want?

How do you think businesses decide what to sell to their customers? Write down some of your ideas in the comments section below and check back tomorrow for the answer!

Here are some resources to support at-home learning on this mini-lesson:

• Needs & Wants: https://www.juniorachievement.org/documents/20009/7204536/JA_Elementary_Sorting_Needs_and_Wants.pdf/5b11b453-88af-47f7-9498-402a57291eaa

• Goods & Services: https://www.juniorachievement.org/documents/20009/7204536/JA_Elementary_Goods_Services.pdf

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WEDNESDAY: PRODUCERS/CONSUMERS & SUPPLY/DEMAND

What are producers and consumers? Here are some clues:

• What do you think a producer is? Write down some ideas.

• What do you think a consumer is? Write down some ideas.

Check out this video to learn the definition of producers and consumers!

Now that we've gone over producers and consumers, let's see what you know!

Look at the options below. Which show examples of being a producer and which show examples of being a consumer? List three examples of each, from the list below:

Here are our definitions of consumers and producers for you to review, if needed:

Now that we've talked about who is buying/selling or using/creating products, how producers know what and how much to make?

Supply and demand shows the relationship between producers and consumers. Consumers demand what they want or need. Producers create products so there is a supply of product available.

Recently, you saw a real-world example of supply and demand: toilet paper.

A few weeks ago, there was almost always enough toilet paper on the shelves for people who needed it. That is because the demand for toilet paper was low. People bought toilet paper when they needed it, so stores were able to do math to figure out how much they needed to order. Stores worked with the producers so they knew how much toilet paper they would need to make in order to have a supply to send to the stores.

While people have been reacting to Coronavirus, many have purchased extra items to have to go to the store less. People were very interested in buying toilet paper, so the demand was high. Once the demand went up, stores had a hard time keeping a supply of toilet paper that met the demands of consumers.

Want another example of supply and demand? Check out this video:

Here are our definitions of supply and demand:

Interested in seeing some more real-world examples of supply and demand?

Pick one gas station near your home or on the way to a place your parents go. Use this resource to track the gas prices you see at the gas station and pay attention to the changes. What is changing when the price goes up? What is changing when the price goes down?