Goods and Services
Is a box of cereal an example of a good or a service?
A box of cereal is a good!
How does the government pay for services like schools and libraries?
Taxes!
Which is an example of voluntary exchange?
a. making your own cookies
b. buying your cookies from a store with lots of choices
c. buying candy from a government store that tells you what kind you have to buy
Buying your cookies from a store with lots of choices! (It's a free market!)
In a market economy, what are prices based on?
a. goods traded for services
b. supply and demand
c. the government's rules
Supply and demand!
Which is an example of a consumer?
a. a kid buying a new bike,
b. a firefighter putting out a fire
c. an artist selling a painting
A kid buying a bike is a consumer.
You pay for swimming lessons. Is this an example of a good or a service?
Swimming lessons are a service!
What do firefighters, the police, and the military have in common?
a. They are private services paid for with taxes.
b. People pay them money for their services.
c. They are public services paid for with taxes.
They are public services paid for with taxes.
In a voluntary exchange system, what does interdependent mean?
a. dependent on others for goods
b. dependent on yourself for goods
c. dependent on your family for goods
d. dependent on the government for goods
Interdependent means you depend on OTHERS for goods. Think of Anna's Coat!
What is the definition of supply?
a. the want to buy goods
b. the amount of goods available
c. the price you pay for something
Supply is the amount of goods available!
How does trade help a producer and a consumer?
Both make a lot of money by trading with each other.
Consumers make more money by selling goods that producers want.
Both get something they need in exchange for something they did not need.
Producers make money by selling consumers something they do not want or need.
Both get something they need in exchange for something they did not need.
Which of these services does the government NOT provide? traffic lights, restaurants, schools, police
Restaurants!
Who has to pay taxes?
a 3rd grader, a dog, a teacher
In economics, what is the best example of depending on others?
a. owning a house
b. growing your own food
c. shopping at a grocery store
Shopping at a grocery store!
Which of the following BEST describes supply and demand?
a. A candy bar company never changes the kind of candy bar it makes.
b. A candy bar company changes the kind of candy bar based on the kind that kids are buying the most.
c. A candy bar company only makes the kind of candy the government tells them to make.
A candy bar company changes the kind of candy bar they make based on the kind the kids are buying the most.
What word defines the idea of exchanging goods or services when a person needs or wants something?
A. Money
B. Taxes
C. Trade
D. Dependence
Trade!