1. Allocating Goods and Services Maggie Wade Pauline Wilson

2. Goods and Services  Goods are items that we can buy and sale.  Services are jobs that workers do for other people.

3. What is a consumer and producer?  A consumer is anyone who buys a good or a service.  A producer is anyone who makes or grows a good or performs a service.

4. What is Scarcity?  Scarcity means that there are more consumers than goods.  When goods are scarce, they need to be allocated, or rationed, to make sure that the people who really want them can get them.

5. Ways to Allocate Goods and Services  First come, first served  Goods and services are distributed to individuals who buy them before the supply runs out (ex. Black Friday sales and concert tickets).  Problem – it wastes time  Lottery  Goods and services are distributed to individuals by chance (ex. drawing a name out of a hat).  Problem – it will not get the goods to the people that really want them

6. Ways to Allocate Goods and Services  Personal Characteristics  Goods and services are distributed based on race, age, sex, hair color, school attended, etc.  Problem - it will not get the goods to the people that really want them  Contests  People compete against each other at a chance to win goods or services (ex. Essay contest and cook-off).  Problems – time-consuming; goods are not guaranteed to the people that really want them

7. Ways to Allocate Goods and Services  Price  Goods and services are sold for a particular amount of money. Prices are based on the demand.  Problem- People who really want a good or service may not be able to afford them

8. Activity  Work in groups of 4 or 5  Choose at least one of the five ways to allocate goods and services to solve the following problem.  The second grade at your school is taking one bus to Walt Disney World for spring break. The bus has 54 seats. Seventy students want to go on the trip. What will be the best way to determine which students go on the trip?

9. Can you describe 5 ways that goods and services are allocated?

10. References http://www.rockingham.k12.va.us/resources/elementary/2history.htm#8sol Alden, Lori. Allocating Goods and Services: A Primer. Online, http://www.econoclass.com/allocation.html http://pbskids.org/lions/stories/