FOCUS QUESTION FOR THIS SECTION
What is the role of consumption and production in a market economy?
Section 1: Consumers and Producers
SECTION DESCRIPTION
In these lessons, students will be able to differentiate between a consumer and producer, clarify that money is used as a medium of exchange, and examine the trading process in terms of pricing and how those who participate in trading can each gain from a trade.
LESSON OBJECTIVES
Define consumers and producers, as well as the goods and services they consume and produce.
LESSON OBJECTIVE
Define the roles of consumers and producers in relation to goods and services.
Define price as what people pay when they buy a good or service and what they receive when they sell a good or service.
Understand that people consume goods and services but not money; money is important because it can be used to buy goods and services.
Identify an individual as a producer who makes goods and services and others as consumers who use goods and services.
LESSON OBJECTIVES
Apply knowledge of producers and consumers to show what kinds of goods and services they use.
Compare relative prices of goods and services based on the definition that relative prices are the basic measures of the relative scarcity of products when prices are set by market forces (supply and demand).
LESSON OBJECTIVES
Analyze a trading scenario, evaluate the relative gain by each party, and determine whether a trade will occur.
LESSON OBJECTIVES
Diagram a representation of the business model as it relates to consumers, producers, goods, and services.