Business Concepts and Profit Understanding

Mrs. Williams introduces third-grade students to the basics of starting a business, covering goods and services, supply and demand, and the role of entrepreneurs. The lesson includes examples like oranges and lemonade stands to explain economic concepts such as free enterprise and profit-making. Students are encouraged to think about how businesses operate and the factors influencing prices. The session concludes with an activity to reinforce learning.

What is the primary goal of starting a business?

• To create a community service

• To make new friends

• To earn a profit

• To employ people

Which of the following is an example of a good?

• Bottled water

• Personal training

• Gardening

• Dog grooming

What is a service?

• A type of product sold in stores

• A type of work done for others for pay

• A type of fruit

• A type of business

How does an increase in supply affect the price of goods?

• It increases the price

• It doubles the price

• It decreases the price

• It has no effect on the price

What factors influence the price of oranges?

• The time of year and transportation costs

• The location of the store

• The color of the oranges

• The type of packaging

Why do people start businesses?

• To serve a need in the community

• To become famous

• To avoid paying taxes

• To travel the world

Who are entrepreneurs?

• People who only invest in stocks

• People who start and run their own businesses

• People who manage public parks

• People who work for large companies

What is free enterprise?

• A system where all businesses are owned by the government

• A system where the government sets all prices

• A system where there are no businesses

• A system where businesses are free to set prices and compete

In the lemonade stand example, what did Max and Leanne do to attract more customers?

• They increased their prices

• They closed their stands

• They offered free lemonade

• They lowered their prices

What is the definition of profit in a business context?

• The money left after subtracting costs from income

• The total sales made by a business

• The number of products sold

• The amount of money spent on advertising