1. Business: Production and Consumption
Write On
Grade 3

2. Learner Expectation Content Standard: 2.0
Globalization of the economy, the explosion of population growth, technological changes and international competition compel students to understand, both personally and globally, the production, distribution, and consumption of goods and services. Students will examine and analyze economic concepts such as basic needs versus wants, using versus/saving money, and policy making versus decision making.
Learning Expectations:
2.03 Understand fundamental economic concepts.

3. In this activity you will:
Learn about how our country produces, distributes, and uses goods and services.
Write a paragraph to describe how producers and consumers work together to create the American economy.

4. Our economy is made up of producers and consumers.

5. Producer
Producers make and sell products.

6. In order to produce a good, producers must have:
Human Resources
Capital Resources
Raw Materials

7. Human Resources
Human resources are the people used in making the product.

8. Capital Resources
Capital is the money needed to run a business.

9. Raw Materials Raw materials are natural resources.
For instance, cotton is a raw material used in the production of clothing.

10. Consumers Consumers buy products and services.
When you shop at Wal-Mart, you are a consumer.

11. Demand and Supply
Consumers (shoppers) create a demand for goods according to their wants and needs.
The amount of goods offered by a business is the supply.

12. Additional Resources
Click the following button to visit a website about automobile manufacturing.
You may also want to visit the “Trade Museum.”
Click
Here
Click
Here

13. Additional Resources Quiz
Take the “Robotics Quiz.”
Quiz

14. Sources Writing Activity Houghton Mifflin English
Harcourt Social Studies
Writing
Activity

15. Writing Activity
Write a paragraph to describe how producers and consumers work together to create the American economy.