JA Econ.pp.19-21. Production of Goods & Services. Part 1

Production of Goods and Services

Lesson Objective

SWBAT

-Explain how a business acting in its self-interest benefits others.

-Describe the importance of profit to a business owner.

​Lesson Introduction

In this lesson, we'll dive into the world of business and explore how goods and services make their way to consumers to satisfy their needs and wants.

​Prior Lesson Review

Multiple Choice

When individuals living in households use their income to purchase goods and services for immediate use, they are called savers.

• True

• False

Multiple Choice

Which of the following best describes the role of consumers in the economy?

• They are responsible for directing the effort and resources that go into making goods and services.

• They have no impact on the economy.

• They only focus on meeting basic needs.

Multiple Choice

Which of the following best describes the relationship between consumption and saving in a household?

• They are unrelated

• They are directly proportional

• They are inversely proportional

Dropdown

Households must carefully choose how to use their income to first meet basic needs and then think about getting things that make them happy. They can choose to buy things to use now, which is called ​

Select answer

, or they can choose to save for future use. The income that comes into a household is scarce and individuals must make a ​

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between consumption and saving.​ Consumption meets basic needs and satisfies wants, while ​

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offers the potential to meet future wants or needs. ​

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pay attention to consumer consumption patterns, and it is important for consumers to understand how their own consumption habits and decisions can impact the ​

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in their community.

​Topic Introduction

We'll look at how businesses make decisions, the role of profit and loss, the impact of entrepreneurs, and how all of these factors contribute to the overall success of companies and the growth of the U.S. economy.

Go to page 19 of the textbook (p.18 of digital text) and read up to the end of section "Business Basics in the United States". You have 3 minutes to complete the reading and take notes. Then answer the questions that follow.

READING ACTIVITY - YOU DO

Reading Options:

1. Physical Textbook

2. PDF Text in Google Classroom.

Multiple Choice

In a free enterprise economy like the United States, businesses primarily turn to other businesses to fulfill their needs.

• True

• False

Multiple Choice

Which of the following best describes the role of government in a free enterprise economy?

• Government heavily regulates businesses

• Government plays a limited role

• Government owns and operates all businesses

Multiple Choice

In the text, what is the outcome of the situation described?

• The consumer is unhappy with the food

• The business owner is unhappy with the customer

• The situation is a win-win for both the consumer and the business owner

Open Ended

Explain in your own words how does a free enterprise economy work?

​Pair Work

Working with a partner create a list showing at least five different players in the food truck business and the goods and services they provide. Include how these players interact with each other in the market.

Go to page 20 of the textbook (p.19 of digital text) "Profit and Loss". You have 3 minutes to complete the reading and take notes. Then answer the questions that follow.

READING ACTIVITY - YOU DO

Reading Options:

1. Physical Textbook

2. PDF Text in Google Classroom.

Multiple Choice

Businesses produce goods and services to earn a profit.

• True

• False

Multiple Choice

What is the main motivator for businesses to produce goods and services?

• Helping others

• Meeting the needs and wants of consumers

• Altruism

Multiple Choice

What happens when the costs of doing business are greater than the revenue?

• The business earns a profit

• The business experiences a loss

• The business remains unchanged.

Multiple Select

Are you following the lesson?

• Yes

• Kinda

• No

Multiple Select

Do you have any questions so far?

• Yes

• No

Match

Match the correct definition with each keyword

• When a business pays more in expenses than it makes in revenue

• Money earned from sales

• A system in which economic decisions are made in the markets by people and businesses.

• When business owners earn more than what if costs to produce the goods that need and want.

Loss

Revenue

Free enterprise

Profit

• Loss

• Revenue

• Free enterprise

• Profit

Go to page 21 of the textbook (p.20 of digital text) and read the section "Entrepreneurs". You have 3 minutes to complete the reading and take notes. Then answer the questions that follow.

READING ACTIVITY - YOU DO

Reading Options:

1. Physical Textbook

2. PDF Text in Google Classroom.

Multiple Choice

Entrepreneurs play a vital role in the success of businesses and the growth of the U.S. economy.

• True

• False

Multiple Choice

What is the primary motivation for entrepreneurs to start a business?

• To become billionaires

• To fill a need or satisfy a want in the community

• To gain fame

Multiple Choice

How do entrepreneurs such as Bill Gates and Steve Jobs impact the market?

• They only benefit themselves

• They change the way we work, play, communicate, and learn

• They only impact a small number of people

How can entrepreneurs make a positive impact on the community and society?

​

Class Discussion

Dropdown

Businesses in a free enterprise economy make decisions based on their ​

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, such as producing goods and services to earn a ​

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, and how this aligns with the needs and wants of consumers. ​

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play a vital role in the success of businesses and the growth of the economy by introducing new ​

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and taking risks, which can improve the overall quality of life. The concepts of ​

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and market forces like supply and demand also play a role in the decision-making process of businesses.