Second Grade Second Grade EconomicsEconomics

Second Grade Second Grade EconomicsEconomics

Resources - SOL 2.7Resources - SOL 2.7

Bartering - SOL 2.8Bartering - SOL 2.8

Scarcity - SOL 2.9Scarcity - SOL 2.9

By: Barbara PetersBy: Barbara Peters

People help the economy People help the economy by purchasing “goods” by purchasing “goods”

and “services.”and “services.”

People help the economy People help the economy by purchasing “goods” by purchasing “goods”

and “services.”and “services.”

Goods and ServicesGoods and ServicesGoods and ServicesGoods and Services

Goods are things that we Goods are things that we buy that we can use or buy that we can use or

touch.touch.

Goods are things that we Goods are things that we buy that we can use or buy that we can use or

touch.touch.

Services are jobs that Services are jobs that workers do for other workers do for other

people.people.

Services are jobs that Services are jobs that workers do for other workers do for other

people.people.

Some people provide goods Some people provide goods and services, while others and services, while others use goods and services.use goods and services.

Some people provide goods Some people provide goods and services, while others and services, while others use goods and services.use goods and services.

Producers and Producers and ConsumersConsumers

Producers and Producers and ConsumersConsumers

ProducersProducersProducersProducers

Producers are people who Producers are people who makemake goods or goods or provideprovide services. services.

ConsumersConsumersConsumersConsumers Consumers are people who Consumers are people who useuse

goods and services.goods and services.

MoneyMoneyMoneyMoney

Money is coins, paper Money is coins, paper bills, and checks used bills, and checks used in the exchange for in the exchange for goods and services.goods and services.

Kinds of MoneyKinds of Money

coinscoins

Paper billsPaper bills

checkschecks

BarteringBarteringBarteringBarteringBartering is the exchange Bartering is the exchange

of goods or services of goods or services without using money.without using money.

ResourcesResourcesResourcesResources

A resource is something A resource is something that is used in order to that is used in order to meet a need or a want.meet a need or a want.

Kinds of ResourcesKinds of Resources

NaturalNaturalHumanHuman

CapitalCapital

Natural ResourcesNatural ResourcesNatural ResourcesNatural Resources

Materials that come Materials that come from nature are from nature are called called natural natural

resourcesresources..

Natural ResourcesNatural ResourcesNatural ResourcesNatural Resources

Human ResourcesHuman ResourcesHuman ResourcesHuman Resources

People who work to People who work to produce goods and produce goods and services are called services are called human resourceshuman resources..

Human ResourcesHuman ResourcesHuman ResourcesHuman Resources

Capital ResourcesCapital ResourcesCapital ResourcesCapital Resources

Goods made by people and Goods made by people and used to produce other goods used to produce other goods and services are called and services are called capital resourcescapital resources..

Capital ResourcesCapital ResourcesCapital ResourcesCapital Resources

Limited ResourcesLimited ResourcesLimited ResourcesLimited Resources

When all wants cannot When all wants cannot be met at the same be met at the same time, there is a time, there is a

scarcityscarcity..

ScarcityScarcityScarcityScarcity

If there is a forest fire, a toy If there is a forest fire, a toy factory will not be able to get factory will not be able to get the wood it needs to make wooden the wood it needs to make wooden trains. There is a scarcity of trains. There is a scarcity of wood from which the trains are wood from which the trains are

made.made.

Therefore . . .Therefore . . .Therefore . . .Therefore . . .

there will be a there will be a scarcity of wooden scarcity of wooden

toy trains at the toy toy trains at the toy store.store.

Making an Economic Making an Economic ChoiceChoice

Making an Economic Making an Economic ChoiceChoice

When people don’t have enough When people don’t have enough money, they have to make an money, they have to make an “economic choice” and decide “economic choice” and decide

what to buy.what to buy.

If you only had $10.00, If you only had $10.00, which toy would you which toy would you

choose?choose?

If you only had $10.00, If you only had $10.00, which toy would you which toy would you

choose?choose?$ 8.95$ 8.95 $ 9.49$ 9.49

What will be your “economic choice?”What will be your “economic choice?”

The other item you cannot afford to buy is The other item you cannot afford to buy is your “opportunity cost.”your “opportunity cost.”

or . . .or . . .or . . .or . . .

Would you save Would you save your money . . .your money . . .Would you save Would you save

your money . . .your money . . .

for something for something bigger?bigger?

for something for something bigger?bigger?

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