My Business in the Market

A Business in the Market

3rd Grade S.S.

Words to Watch

• budget: a plan that shows income, spending, and saving

• income: all the money a person gets from a job or other sources

• earn: to get something, such as money, after working

• spending: the amount of income a person uses

• savings: the amount of an income not spent

• trade: the buying and selling of goods and services

Words to Watch

• goods: things that people make or grow to sell

• services: jobs that one person does for another

• need: something necessary, a must have for life (food, water, shelter)

• want: something that makes life enjoyable, but isn't necessary for life

• opportunity cost: what you give up to do something else

• scarcity: not enough of something to meet people’s wants and need

Cha Cha Choices

Let's explore how Prudence's choices could change her future

https://www.cha-chingusa.org/activity-18/

Multiple Choice

It's foolish to spend money on things you NEED before spending money on things you WANT.

• True

• False

Multiple Choice

In a Free Market economy, people can choose to run any type of business they wish.

• True

• False

The Free Market

In a Free Market Economy, people can choose to create or support any type of business they wish. In this system, buyers and sellers determine almost every aspect of their relationship, including price, quantity, and quality.

Supply & Demand

Supply is the amount of a good or service that producers (sellers) are able to provide at a certain price.

Demand is the amount of a good or service that consumers (buyers) are willing to buy at a certain price.

Multiple Choice

If there is a huge demand for an item and the supply is very low, what will happen to the price?

• The price will decrease
• The price will increase
• The price will stay the same.
• They will be free.

Multiple Choice

What happens to the price of objects when the demand for them decreases?

• The price will go down
• The price will go up
• The price will stay the same
• They will be free

Multiple Choice

Amazon Prime is selling Smencils.  There are only a few packs left and they are very popular.  What will happen to the price?

• The price will go up.
• The price will go down.

Multiple Choice

Suppose you have a football trading card that everyone else has. Your friends probably won't give you much for it. The supply of that card is high, and the demand for it is low. What will happen to the price of that card.

• The price will go up.
• The price will go down.