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2 Resources are used to produce goods and services. Producers of goods and services are influenced by natural, human, and capital resources. How do producers use natural, human, and capital resources to produce goods and services? Terms to know Natural resources: Materials that come from nature (water, soil, wood, coal) Human resources: People working to produce goods and services Capital resources: Goods made by people and used to produce other goods and services (machines, tools, buildings) Producers: People who use resources to make goods and/or provide services Goods: Things that people make or use to satisfy needs and wants Services: Activities that satisfy people’s needs and wants The student will explain how producers use natural resources (water, soil, wood, and coal), human resources (people at work), and capital resources (machines, tools, and buildings) to produce goods and services for consumers.

Shirley Wilborne3 The student will recognize the concepts of specialization (being an expert in one job, product, or service) and interdependence (depending on others) in the production of goods and services (in ancient Greece, Rome, the West African empire of Mali, and in the present). Economic specialization and interdependence existed in the production of goods and services in the past and exist in our present-day communities. What is economic specialization? What is economic interdependence? How did economic specialization and interdependence exist in ancient Greece, ancient Rome, and the empire of Mali? Does economic interdependence exist in our present day community? Terms to know Economic specialization: Focusing on one product or service Economic interdependence: Two or more people depending on each other for goods and services. Economic specialization occurs when people focus on the production of selected kinds of goods and services. Economic specialization and interdependence of communities in the past Ancient Greece and Rome both focused on building ships, farming, and making pottery. (Specialization) Greeks and Romans traded their goods with Egypt and other nearby communities. (Interdependence) In the empire of Mali, some people specialized in protecting the empire, while others specialized in growing food for the empire. (Specialization) The people of Mali traded (gold for salt) with other people. (Interdependence) Economic specialization and interdependence in the present Virginia is known for its expertise in shipbuilding. (Specialization) Virginia sells its coal to other countries but depends on other countries for oil. (Interdependence)

Shirley Wilborne4 The student will identify examples of making an economic choice and will explain the idea of opportunity cost (what is given up when making a choice). People make choices because they cannot have everything they want. All choices require giving up something (opportunity cost). Why does an economic choice involve giving up something else? Terms to know Economic choice: The choice of or decision among alternatives or possibilities Opportunity cost: The next best choice that is given up when a decision is made Economic decision-making requires comparing both the opportunity cost and the monetary cost of choices with benefits. ChoicesChoices made Choices given up (opportunity cost) Ice cream or popcorn Ice creamPopcorn Toy or favorite video Favorite video Toy Spend now or save for the future Spend nowSave for the future Economic Choices

Shirley Wilborne5 Natural resources Materials that come from nature (water, soil, wood, coal)

Shirley Wilborne6 Human Resources People working to produce goods and services

Shirley Wilborne7 Capital resources Goods made by people and used to produce other goods and services (machines, tools, buildings)

Shirley Wilborne8 Producers People who use resources to make goods and/or provide services

Shirley Wilborne9 Goods Things that people make or use to satisfy needs and wants

Shirley Wilborne10 Services Activities that satisfy people’s needs and wants

Shirley Wilborne11 1. _______ ________ People working to produce goods and services 2. __________ People who use resources to make goods and/or provide services 3. ________ _________ Materials that come from nature (water, soil, wood, coal) 4. _________ Things that people make or use to satisfy needs and wants 5. _________ Activities that satisfy people’s needs and wants 6. _________ _________ Goods made by people and used to produce other goods and services (machines, tools, buildings)

Shirley Wilborne12 People working to produce goods and services 2. People who use resources to make goods and/or provide services 3. Materials that come from nature (water, soil, wood, coal) 4. Things that people make or use to satisfy needs and wants 5. Activities that satisfy people’s needs and wants 6. Goods made by people and used to produce other goods and services (machines, tools, buildings)

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Shirley Wilborne23 Basic Fact Sheet Third Grade Economics 2001 Standards of Learning Life is full of choices. People make many choices everyday. Choices, often called decisions, vary in their difficulty. Regardless of the level of difficulty, all choices carry costs and benefits. Young children make many choices/decisions. Research reveals that they should begin to learn decision-making skills at an early age. Learning basic economics concepts and principles fosters the development of good decision-making skills. Economics is the study of choice under scarcity. Our resources are limited, and our wants are unlimited (scarcity). Scarcity is the inability to satisfy all of our wants at the same time. We must make choices about how to use our limited resources.

Shirley Wilborne24 Resources are things used to produce goods and services. People (Sellers/Producers) use human resources, natural resources, and capital resources to produce goods and services. Sellers/Producers must make choices about what to produce with the limited resources. People (Buyers/Consumers) use or consume goods and services. People have different skills and abilities. People use their skills and abilities to specialize in the production of certain goods and services. (Specialization) Because people specialize, interdependence occurs. People depend on others to provide goods and services they need and want. (Interdependence) Interdependence results in trade/exchange.

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Shirley Wilborne27 Producers combine natural, human, and capital resources to make goods and services. The amount of each resource the producer uses varies based on the good or service being produced. A producer who combines the resources and takes the risk of starting a new business is called an entrepreneur. To have a successful business, the producer or entrepreneur needs consumers to purchase the goods or services produced.

Shirley Wilborne28 Consumers use goods and services. Producers depend on consumers to use their product and consumers depend on producers to make the goods/services they need and want. This dependency on each other for goods/services is called interdependence. The interdependence that exists between producers and consumers requires that each pay careful attention to the other. Producers must be aware of consumer likes and dislikes to know what to produce, how much of it to produce, and when to produce it. Consumers must understand the difficulties of production and provide good consumer feedback to the producer.

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Shirley Wilborne34 Opportunity Cost Economics Resource Opportunity Cost The Goat in the Rug If You Give a Mouse a Cookie If You Give a Mouse a Cookie Economics: unlimited wants, goods, services Homer Price (The Doughnuts) by Robert McClosky Homer Price (The Doughnuts) by Robert McClosky Economics: capital resources, increasing productivity, law of demand, quantity demand The Opportunity Cost of a Lifetime Calvin and Hobbs Opportunity Cost More Resources opportunity cost opportunity cost Charlie's Chocolate Choices Opportunity Costs The Ox-Cart Man Opportunity Costs The Ox-Cart Man You have to give up something! Social Studies Plans State Dept. ResourceEcon

Shirley Wilborne35 The Goat in the Rug Color the rug resources, cut on the dotted lines, arrange the rug to tell the story of rug production, and glue. Economics: Producers, resources (natural, human, capital), intermediate goods.

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Shirley Wilborne40 1. Oh Scarcity! (Tune: Oh, Christmas Tree ) Oh, Scarcity! Oh, Scarcity! We can’t have all the things we want. Oh, Scarcity! Oh, Scarcity! We cannot have it all. We really want a lot of stuff. But sometimes there’s just not enough. Oh, Scarcity! Oh, Scarcity! We cannot have it all.

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Shirley Wilborne42 2. We Are Workers (Tune: Are You Sleeping ) We are workers, We are workers, Yes we are! Yes we are! Brian is a baker. Brian is a baker. He makes bread. He makes bread. We are workers, We are workers, Yes we are! Yes we are! Sarah is a fire fighter. Sarah is a fire fighter. She puts out fires. She puts out fires.

Shirley Wilborne43 3. Oh Give Me a Choice (Tune: Home on the Range ) Oh give me a choice, Oh, a difficult choice, And I’ll think about what I could use. I’ll have to decide, With my eyes open wide, What I’ll give up and what I will choose. Opportunity cost! It’s the thing you give up when you choose. It’s the price that is paid When a choice must be made. It’s the thing that I surely will lose.

Shirley Wilborne44 4. The Money Goes ‘Round (Tune: Here We Go ‘Round the Mulberry Bush) Verse 1: The businesses pay the people who work, The people who work, The people who work. The businesses pay the people who work, The money goes ‘round and ‘round. Chorus: The money goes ‘round and ‘round and ‘round. The money goes ‘round and ‘round and ‘round. The money goes ‘round and ‘round and ‘round. The money goes ‘round and ‘round. Verse 2: The people buy the businesses’ goods, The businesses’ goods, The businesses’ goods. The people buy the businesses’ goods, The money goes ‘round and ‘round. (Repeat chorus)

Shirley Wilborne45 5. Questions (Tune: Oh Where, Oh Where Has My Little Dog Gone ) Oh what, oh what will our country produce? Oh what, oh what will it make? With its natural and capital and human resources, Oh what, oh what will it make? Oh how, oh how will our country produce? Oh how, oh how will it work? With its natural and capital and human resources, Oh how, oh how will it work? For whom, for whom will our country produce? For whom, for whom will it work? With its natural and capital and human resources, For whom, for whom will it work?

Shirley Wilborne46 6. The Baker Wants a Pair of Shoes (Tune: Old MacDonald ) The baker wants a pair of shoes, E-I-E-I-O! The baker wants the shoe clerk’s help, E-I-E-I-O! With a shoe clerk here, and a shoe clerk there, Here a clerk, there a clerk, Everywhere a clerk, clerk. The baker wants the shoe clerk’s help, E-I-E-I-O! The shoe clerk wants some food to eat, E-I-E-I-O! The shoe clerk wants the grocer’s help, E-I-E-I-O! With a grocer here, and a grocer there, Here a grocer, there a grocer, Everywhere a grocer, grocer. The shoe clerk wants the grocer’s help, E-I-E-I-O! The grocer has a little dog, E-I-E-I-O! The grocer wants the vet to help, E-I-E-I-O! With a vet, vet here, and a vet, vet there, Here a vet, there a vet, Everywhere a vet, vet. The grocer wants the vet to help, E-I-E-I-O!

Shirley Wilborne47 7. Buying and Selling (Tune: Row, Row, Row, Your Boat ) Goods, goods, goods are things That we make and use. We’re buying and selling And buying and selling Any goods we choose. Services are things we do That other people use. We’re buying and selling And buying and selling Services that we choose. 8. Spending and Saving (Tune: On Top of Old Smoky ) Keep spending your money; get something this way. The value is small but you’ll have it today! Start saving your money; get something this way. The value is great and you’ll get it some day!

Shirley Wilborne Consumers (Tune: The Bear Went Over the Mountain ) Consumers go to the market, consumers go to the market, Consumers go to the market, to see what they can buy. And all that they can buy, and all that they can buy, Are lots of goods and services, lots of goods and services, Lots of goods and services, that’s all that they can buy.

Shirley Wilborne The Market Song (Tune: My Bonnie Lies Over the Ocean ) Consumers buy goods from producers, Consumers buy services, too. Consumers buy goods from producers, And use them, yes, that’s what they do. Consumers! Consumers! They pay the producers for what they use. Consumers! Consumers! They pay for the things that they use. Producers make goods from resources, Producers make services, too. Producers make things for consumers, And sell them, yes, that’s what they do. Producers! Producers! They make things by using resources. Producers! Producers! They make things and sell them to use. Markets are to buy and to sell things. Markets are where we exchange. We exchange as we buy and we sell things. Producers, consumers, exchange. Markets! Oh, Markets! Oh, markets are where we exchange, exchange. Markets! Oh, Markets! Producers, consumers exchange. Verse 1 Verse 2 Verse 3

Shirley Wilborne50 We’ve been working on production, All the livelong day. We’ve been working on production, Just to make some goods this way. We use natural resources, Such as land, and oil, and trees. We use capital resources, Such as tools and factories. Now we will work! Now we will work! When we use our human resource. Now we will work! Now we will work! We use our human resource. 14. We’ve Been Working on Production (Tune: I’ve Been Working on the Railroad )

Shirley Wilborne Economies (Tune: This Old Man ) 1. Ha! Ha! Ha! Some countries Have traditional economies. And they produce, oh yes they do, The way tradition tells them to. 2. Ha! Ha! Ha! Some countries Have command economies. And they produce, oh yes they do, The way their leaders tell them to. 3. Ha! Ha! Ha! Some countries Have market economies. And they produce, oh yes they do, The way the market tells them to. 4. Ha! Ha! Ha! Most countries Really have mixed economies. And they produce, oh yes they do, The way that many things tell them to. 10. Wanting Song (Tune: London Bridge ) Wants are things we’d like to have, Like to have, Like to have. Wants are things we’d like to have, (Janie) wants a (________________).

Shirley Wilborne Do You Ever Like to Barter (Tune: Did You Every See a Lassie ) Do you ever like to barter, to barter, to barter? Do you ever like to barter, and do it just right? Trade this thing for that thing, And this thing for that thing. Do you ever like to barter, no money in sight? The following songs are from: Master Curriculum Guide, K-2, © National Council on Economic Education. Used with permission. Oh Give Me a Choice Oh, Scarcity! The Baker Wants a Pair of Shoes We Are Workers We’ve Been Working on Production Wanting Song The Money Goes ‘Round and ‘Round The Market Song The following songs are from : Economics in Children’s Literature, Third Supplement, © SPEC Publishers, St. Louis (In collaboration with Donna Wright). Used with permission. Buying and Selling Consumers Do You Ever Like to Barter Spending and Saving The following songs are from : Adventures in Economics and American History, © EconFun, LLC, Richmond, VA (In collaboration with Suzanne Gallagher). Used with permission. Economies Questions Supply and Demand The Econ Song Book Old Tunes with an Economics Twist © 1997 by Martha C. Hopkins James Madison University Center for Economic Education Harrisonburg, VA

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