Going Shopping
This is one of the busiest malls in the United States. It has around 40 million shoppers each year!
What is The Mall of America?
In the United States, the economic system is based mostly on economic decisions made by individuals, with businesses competing with each other. What is this economic system called?
The Free Market
A Free Market includes 4 specific things. What are they?
1) Free Choice
2) Limited Government
3) Making a Profit
4) Private Property
What are 4 ways that kids can sell goods and be part of a Free Market?
1) They can grow vegetables and fruits, then sell them.
2) They can bake breads or cakes and sell them.
3) They can make lemonade and sell that.
4) They can make jewelry or art, then sell those.
What can kids PRODUCE to be a part of the Free Market?
They can PRODUCE goods and provide services.
Michael and his parents shop in a busy mall. The boy has saved up his allowance to buy what?
A New Jacket.
What is the difference between PRODUCERS and CONSUMERS?
Producers make goods (products) like books or clothing. They may also provide a service like serving food or driving a bus.
Consumers use goods and services. They spend their money on the things they want or need.
What is the difference between SUPPLY and DEMAND?
Supply is the amount of goods or services that are available.
Demand is how much consumers want to purchase a specific good or service.
What are 4 ways that kids can provide services and be part of a Free Market?
1) They can mow lawns or do yard work for others.
2) They can babysit children.
3) They can wash people's cars.
4) They can walk dogs or care for pets.
How can kids be AN ENTREPRENEUR in a Free Market?
They can be AN ENTREPRENEUR and meet consumer needs and wants.
Dozens of stores in malls stock their shelves with thousands of items to sell. What is their goal?
Their goal is to attract shoppers.
What are things found in nature (land, water, trees, etdc.) called?
Natural Resources
What happens if the DEMAND is greater than the SUPPLY?
What happens if the SUPPLY is greater than the DEMAND?
If the DEMAND is greater than the SUPPLY, then the price of goods/services go UP.
If the SUPPLY is greater than the DEMAND, then the price of goods/services go DOWN.
How do Kids change the way they spend money as they get older?
When kids are young (under 10) they mostly buy things like toys and games.
As they get older (10-14) they start to buy other things like clothes, movie tickets, and sports equipment.
When kids get to high school (15-18) they spend money on things like phones, eating out, and going on dates.
How can kids be A CONSUMER in a Free Market?
They can make money working for others. They can be A CONSUMER who buys and uses goods and services.
What helps the nation's ECONOMY run?
Buyers and Sellers coming together for goods and services.
What is the difference between HUMAN RESOURCES and CAPITAL RESOURCES?
Human Resources are people who work for producers.
Capital Resources are things made by people.
What is SCARCITY? How does it affect the economy?
Scarcity is when producers do not have enough of a good or service to sell, so they cannot meet the consumers' demand.
Scarcity affects the economy because it makes the cost of goods/services go way up!
What are 3 things kids learn from Saving Money?
1) make smart decisions
2) set goals for the future
3) be responsible consumers
How can kids HELP OTHERS in a FREE MARKET?
They can DONATE money to people who need it.
What is the definition of ECONOMY?
The way a Country manages resources to produce, buy, and sell things.
How do ENTREPRENEURS help the economy? Give 3 examples.
A) They spend money on resources to start their business.
B) They get money from consumers who buy their goods or services.
C) They also provide jobs to people.
How is COMPETITION good for consumers?
If businesses sell the same good, there may be a high supply of that good. Competition causes businesses to have sales that lower prices. This means the consumers get a better deal on the goods they want or need.
In America, is the government supposed to have a large or small involvement in the economy?
The government is supposed to have very little involvement in the economy.
How can kids HELP THEMSELVES in a Free Market?
They can SAVE money for different reasons (save for college, save for future trips, save for Birthday/Christmas, etc.)