1st Grade Social Studies
Economic Understandings
Unit 4
Goods and Services
Goods and services build up our economy!
Goods are objects and things that are produced! They are things that can be bought and sold. Businesses produce and sell products that we buy. Goods include things like food, toys, and clothes.
Services are things that people do for others! These are actions that people do for money. Examples of services include haircuts, cleaning, and repairs.
Goods and services are how people make money! Jobs are created by doing services and selling goods.
Scarcity
A scarcity is when there is a short and limited supply of a good. When there is a good that is in high demand (really wanted), and there is a short supply of it, it can be called a scarcity.
Think of gasoline as an example! Gasoline is needed to power our cars and machines. However, there is a limited supply of it! But it is needed in our country. There is a high demand for it, but a limited supply. If the supply has a shortage, there will be a scarcity all over the country!
Scarcities can have a really bad effect on our economy!
Producers and Consumers
In our economy, everyone is both a producer and a consumer!
Producers are people who provide goods, services or both. Goods and services make up business, and producers often work in and own those businesses.
Consumers are people who pay money for those goods and services. Consumers use the things that producers provide.
Everyone is both a producer and consumer! They make up the economy!
Income and Budget
When you get older and have a job, you will earn a yearly income. Income varies on what job you have! When you get an income, you have to think of how to save and spend your money
You need a budget! Making a budget helps you organize how much money you spend on things. With a certain amount of money (your income) you must decide how to spend it.
Saving your money is very important! You may save money for a home, a car, or maybe for a rainy day!
