Second Grade Economics

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Second Grade Economics
By Barbara Peters

• Resources - SOL 2.7
• Bartering - SOL 2.8
• Scarcity - SOL 2.9

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People help the economy by purchasing goods and
services.

• Goods and Services

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Goods are things that we buy that we can use or
touch.
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Services are jobs that workers do for other
people.
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Some people provide goods and services, while
others use goods and services.

• Producers and Consumers

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Producers

• Producers are people who make goods or provide
  services.

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Consumers

• Consumers are people who use goods and services.

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

• Bartering is the exchange of goods or services
  without using money.

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Resources

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

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Kinds of Resources

• Natural

Human
Capital
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Natural Resources
Materials that come from nature are called
natural resources.
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Natural Resources
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Human Resources
People who work to produce goods and services are
called human resources.
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Human Resources
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Capital Resources
Goods made by people and used to produce other
goods and services are called capital
resources.
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Capital Resources
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Limited Resources
When all wants cannot be met at the same time,
there is a scarcity.
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Scarcity
If there is a forest fire, a toy factory will not
be able to get the wood it needs to make wooden
trains. There is a scarcity of wood from which
the trains are made.
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Therefore . . .
there will be a scarcity of wooden toy trains at
the toy store.
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Making an Economic Choice
When people dont have enough money, they have to
make an economic choice and decide what to buy.
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If you only had 10.00, which toy would you
choose?
9.49
8.95
What will be your economic choice? The other
item you cannot afford to buy is your
opportunity cost.
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or . . .
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Would you save your money . . .
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for something bigger?