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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.
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
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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?
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)
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)
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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 Choices
Economic choice: The choice
Choices given up
Choices
Choices
(opportunity
made
of or decision among
cost)
alternatives or possibilities
Ice cream
Ice cream
Popcorn
Opportunity cost: The next
or popcorn
best choice that is given up
Toy or
Favorite
Toy
when a decision is made
Economic decision-making requires
comparing both the opportunity
cost and the monetary cost of
choices with benefits.
favorite
video
video
Spend now
or save for
the future
Spend now
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Save for the
future
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Natural
resources
Materials that come
from nature
(water, soil, wood, coal)
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Human
Resources
People working to
produce goods and
services
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Capital
resources
Goods made by people and
used to produce other
goods and services
(machines, tools, buildings)
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Producers
People who use
resources to make
goods and/or
provide services
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Goods
Things that people
make or use to
satisfy needs and
wants
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Services
Activities that
satisfy people’s
needs and wants
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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)
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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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Economics
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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.
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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)
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Interdependence results in trade/exchange.
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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.
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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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Opportunity Cost
Opportunity Costs The Ox-Cart Man You have to give up something!
opportunity cost Charlie's Chocolate Choices
Calvin and Hobbs Opportunity Cost
The Opportunity Cost of a Lifetime
Homer Price (The Doughnuts) by Robert McClosky
Economics: capital resources, increasing productivity, law of demand, quantity demand
If You Give a Mouse a Cookie Economics: unlimited wants, goods, services
The Goat in the Rug
Opportunity Cost
State Dept. Resource
Econ
Social Studies Plans
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Economics Resource
More
Resources
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.
Shirley
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Economics: Producers, resources
(natural,
human, capital), intermediate goods.
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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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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.
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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.
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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.
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(Repeat chorus)
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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?
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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!
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8. Spending and Saving (Tune: On Top of Old
Smoky)
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.
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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!
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12. 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.
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13. The Market Song (Tune: My Bonnie Lies Over the Ocean)
Verse
1
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.
Verse
2
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.
Verse
3
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.
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14. We’ve Been Working on Production (Tune: I’ve Been Working on the Railroad)
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.
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11. Economies (Tune: This Old Man)
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
(________________).
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
that many things tell them
to.
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15. 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 22807
http://www.econed.org/assets/EconSongs.pdf
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http://www.kidseconposters.com/images/hp_op_cost.pdf
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