2.9 OVERVIEW

The student will explain that scarcity (limited resources) requires people to make choices about producing and consuming goods and services.

SUGGESTED INSTRUCTIONAL STRATEGIES

• Ask the students to list some wants they have and write them on their paper. Have individual students read their wants and ask the students how could they get or consume these wants. Ask the students if they can determine what the term consume means. Explain that it is a person who uses goods or services (consumers).
• Explain to the students that we are all consumers who decide what goods and services to use to satisfy our wants. Have the students draw a self-portrait and label it consumer. Post the classroom portraits of the consumers for all the students to see.
• Use a chart and have the students list three goods and three services they have consumed or used in the last few days. Have the students illustrate the examples of the goods and services they have used.
• Have the students share their consumer goods and services charts with the class and post the charts on the bulletin board under each student’s self-portrait.
• Introduce the term producer to the students. Tell the students that a producer is a person who uses resources to make goods and /or provide services.
• Show the students pictures of some producers such as farmers who grow crops that are sent off to stores to be sold, factory workers who produce a specific item that consumers use, or kitchen workers who produce food for consumers to eat.
• Explain to the students that producers combine natural, human, and capital resources to produce goods and services. Producers depend on consumers to use their product and consumers depend on producers to make the goods and services they need and want. Production takes place before consumption.
• Have the students participate in an activity where they take on the role of the producer. Suggested activities might include an assembly line production of a classroom bookmark, poster, or card. Other ideas might include an assembly line of students to create a food product such as Trail Mix or peanut butter sandwiches.
• Hold a classroom discussion of a sample product the class would like to make (with the teacher’s guidance and resources). Remind the students to keep in mind the available resources they have when planning the item they want to produce.
• Plan with the students the necessary steps and supplies and resources they will need to include in the production of their classroom product. Make a flow chart to help the students see the steps needed for the process.
• Assign each of the students a role in the production assembly. Begin the assembly and have the students complete each of their required tasks.Have the students discuss their part in the production process as they assemble the good or service they are creating.
• Introduce the concept of scarcity by limiting the number of playground balls that the students can take out for recess one day. Explain to the students that today we have a scarcity of playground balls and they must figure out how to work with the limited number of balls at recess.
• Introduce the term scarcity and define it as not being able to meet all wants at the same time.
• Have the students brainstorm a list of ways to solve their problem of scarcity with the playground equipment. Post these ideas on chart paper.
• Explain to the students that people must make economic choices because resources and goods and services are limited (scarcity). Further tell the students that our resources are limited, and our wants are unlimited. Everyone, whether in their role as a producer or a consumer, must make choices about how to use the limited resources available.
• Explain that producers, people who use resources to make goods and/or provide services, must decide what they will produce from the limited amount of natural, human, and capital resources that are available. The availability of those resources influence decisions about where the producer locates for production, how much of the good or service will be made available for consumption, and the price of the good or service.
• Explain that consumers, people who use goods and services, experience scarcity. Choices must be made about what to consume and how much of it to consume. Consumers must decide what to buy/use with the limited amount of money with which to get goods and services. Sometimes, a consumer may have the monetary resources to make a purchase but find the good or service is unavailable or scarce.

WEB SITES

http://cob.jmu.edu/econed/Elementary.htm
The James Madison University Economic Education Department has elementary economics lessons online.

http://www.mcps.k12.md.us/curriculum/socialstd/Econ_Geog.html
Sample elementary economic books and lesson plans are included at this site.

http://www.economicsamerica.org
The National Council of Economic Education has many outstanding resources.

http://www.pen.k12.va.us/VDOE/Instruction/info.pdf
The Primary Knowledge of Economics is an excellent resource.

http://www.vcu.edu/busweb/vcee
This is the Web site of the Virginia Council of Economic Education.

http://www.kidseconposters.com/econsongs.html
Songs and posters make economics education fun.

http://chumby.dlib.vt.edu/melissa/posters/
Social Studies resources posters sets are available at this Web site.

http://www.fte.org
The Foundation for Teaching Economics Web site contains useful information.

LITERATURE LINKS

People are producers and consumers. People must make economic choices because resources are limited

Berenstain, Jan and Stan.
Berenstain Bears’ Trouble with Money. New York: Random House, 1983.
In this story, Brother and Sister bear learn some important lessons about earning and spending money.