Economic Understanding

Economic Understanding Vocabulary Booklet

Scarcity Example Definition in your own words Illustration of what it is Illustration of what it isn’t

Choice Example Definition in your own words Illustration of what it is Illustration of what it isn’t

Opportunity Cost Example Definition in your own words Illustration of what it is Illustration of what it isn’t

allocated Example Definition in your own words Illustration of what it is Illustration of what it isn’t

price Example Definition in your own words Illustration of what it is Illustration of what it isn’t

majority rule Example Definition in your own words Illustration of what it is Illustration of what it isn’t

contest Example Definition in your own words Illustration of what it is Illustration of what it isn’t

force Example Definition in your own words Illustration of what it is Illustration of what it isn’t

sharing Example Definition in your own words Illustration of what it is Illustration of what it isn’t

lottery Example Definition in your own words Illustration of what it is Illustration of what it isn’t

authority Example Definition in your own words Illustration of what it is Illustration of what it isn’t

first-come-first-serve Definition in your own words Example first-come-first-serve Illustration of what it is Illustration of what it isn’t

personal characteristics Example Definition in your own words Illustration of what it is Illustration of what it isn’t

barter Example Definition in your own words Illustration of what it is Illustration of what it isn’t

trade Example Definition in your own words Illustration of what it is Illustration of what it isn’t

personal savings Example Definition in your own words Illustration of what it is Illustration of what it isn’t

money Example Definition in your own words Illustration of what it is Illustration of what it isn’t

spending choices Example Definition in your own words Illustration of what it is Illustration of what it isn’t

Economic Understanding SS2E1 Explain that because of scarcity, people must make choices that result in opportunity costs.

Goods and Services SS2E2 Identify some ways in which goods and services are allocated (such as: price, majority rule, contests, force, sharing, lottery, authority, first-come-first-served, and personal characteristics).

How do people get what they need and want How do people get what they need and want? In the United States most people buy things. If you went to the store and your favorite cereal cost $10.00 a box, what would you do? What made you decide that?

What if you loved a new toy but only a few people buy it What if you loved a new toy but only a few people buy it? The store has decided not keep it on the shelves. Why? How did they make that decision?

Think about a time when you have to choose what you want to eat for lunch in the morning. Let’s say you picked pizza as your choice. It’s time for lunch, your class lines up and goes to the cafeteria. When you finally get to the lunchroom, you discover they are out of PIZZA! Has this ever happened to you? What choice would you have to make?

This is a really fun way to get something that you really want This is a really fun way to get something that you really want. You might buy a ticket and place your name on it. Then you have to put it in a box and hope they draw your name to win that skateboard you have always wanted! You might get a chance to guess how many skittles your teacher has in a jar to win all the skittles. Have you ever won anything? How did you win a prize?

Sometimes people do bad things to get what they need or want Sometimes people do bad things to get what they need or want. Someone may take something from a store without paying for it. A bully at your school might say that you will get hurt if you don’t give them your piece of candy or money for ice cream. There are consequences for bullying and stealing. What do you think this is an example of?

One day, you and a friend got to play together after school One day, you and a friend got to play together after school. While playing, your friend wants what you are playing with. What do you do? Your family cooked several meals one day to help those people who are in need. Let’s say you decided to go with your family to help pass out food to people who are homeless, shut-ins, or elderly. What are you and your family doing when you help people in need?

What happens if 500 people want to go to a dance, but there are only 250 tickets to buy? One way to solve this is by having a drawing where the names of everyone who wanted to buy a ticket would go into a box. Then someone would draw 250 names . The people whose names are drawn would get to go to the dance. What would this be an example of?

Another solution to allocate goods and services would be that all Troup County 2nd Grade students get to go see a play at Troup High. This method is an example by where only 2nd Graders can attend. What characteristics are being used?

Goods and Services SSE3 Explain that people usually use money to obtain the goods and services they want and explain how money makes trade easier than barter.

How is using money better than trading or bartering? What might happen? What’s the difference between bartering and trading? How is money better than trading and bartering?

Bartering or Trading

Goods and Services SSE4 Describe the cost and benefits of personal saving and spending choices.

Savings Plan