Markets
This is a place where buyers and sellers meet to exchange goods and services.
What is a market?
This is a person who buys goods or services.
What is a consumer?
What word means there are not enough resources to have everything you want?
What is scarcity?
Something that motivates someone to make a choice is called a what?
What is an incentive?
A plan to help people decide how to spend money now and save for later is called a what?
What is a budget?
Name two kinds of things you might see being sold at a market (one example each)
What are goods (for example: vegetables, soap, baked goods) and services (for example: haircuts, food from a vendor)?
This is someone who makes goods or provides services to sell to others.
What is a producer?
If you can only buy either a new pair of shoes or a toy because you don’t have enough money for both, the thing you did not buy is called the what?
What is the opportunity cost?
Is getting a coupon to save money a positive or negative incentive?
What is a positive incentive?
In the Costs and Benefits passage, what is a cost?
What is something you have to give up when making a choice?
If a seller at a market is also buying things from other sellers, they are acting as both of these. Name both roles.
What are a producer (seller) and a consumer (buyer)?
A person who runs a lemonade stand buys lemons and sugar from a store and then sells lemonade. Explain how this person is both a consumer and a producer.
What is they are a consumer when they buy supplies and a producer when they sell lemonade?
Give one example from a student’s life that shows scarcity and explain the trade-off.
What is saving allowance to buy a bike (trade-off: cannot buy video games now)?
Give an example of a negative incentive from the classroom or community.
Example — What is a late library fee, a fine for littering, or losing privileges for misbehavior?
Bill has $100. He buys art supplies for $50 and shoes for $40. How much does he have left? (Write the subtraction.)
What is 100−50−40=10100−50−40=10? (Balance: $10)
Give one benefit of going to a market and explain briefly why it is a benefit.
What is there are many different goods and services available, so consumers can compare choices and find what they want?
Give two examples of services (not goods).
What are going to the doctor and getting a haircut? (Other acceptable answers: eating at a restaurant — service of preparing food, lawn mowing, etc.)
Why can scarce resources cause prices to be higher for some goods (like diamonds)?
What is because when something is rare, sellers can charge more since supply is low and demand may be high?
Explain a choice that has both a positive and a negative incentive (use a short example).
Example — What is borrowing a library book (positive: get to read a book for free; negative: pay a late fee if not returned)?
You are planning a class party with $50. Name two healthy snack items from the list that could be bought and their total cost (use items: carrots $2, grapes $3, bottled water $3).
What is carrots and grapes cost $5 total (or carrots $2 + bottled water $3 = $5; acceptable combinations totaling their chosen items)?
A small farmer sells vegetables at a weekly market. Describe one way this farmer (as a producer) could change price or product to attract more customers, and explain one possible cost and one possible benefit of that choice.
What is the farmer could lower the price (cost: less money earned per item; benefit: more customers may buy so total sales could rise)? Or the farmer could offer samples (cost: give away some product; benefit: more customers may try and buy).
A student plans to make friendship bracelets to sell at a school market. List three decisions the student must make as a producer (include one about price) and one reason consumers would buy them.
Example — What are choose materials to buy (cost), set how many to make (production decision), set the price (e.g., $2 each); consumers would buy because they like the bracelet, it is affordable, or it’s a gift?
A family has $200 to spend and must choose between a short vacation ($200) or new furniture ($200). Describe two factors they should consider when making their decision (weighing costs and benefits).
What are consider immediate benefit/enjoyment vs. long-term usefulness, how each choice affects future savings, who in the family benefits most, and any extra costs (travel, maintenance)?
Create a short scenario where changing an incentive could change people's behavior (describe the incentive and expected result).
Example — What is if the school gives students extra recess time for finishing homework (positive incentive), more students may complete homework; or if the town increases fines for littering (negative incentive), fewer people may litter)?
A student has $60 saved. They want a game for $45 and a new backpack for $50. Explain how making a budget could help this student decide and give one possible budget plan.
Example — What is they could buy the game now ($45), put $15 back into savings toward the backpack, and save additional money later; or decide to wait and save $40 more to buy the backpack first (weigh costs and benefits)?