When individuals produce goods or services, they normally trade (exchange) most of them to obtain other more desired goods or services. In doing so, individuals are immediately confronted with the problem of scarcity - as consumers they have many different goods or services to choose from, but limited income (from their own production) available to obtain the goods and services. Scarcity dictates that consumers must choose which goods and services they wish to purchase. When consumers purchase one good or service, they are giving up the chance to purchase another. The best single alternative not chosen is their opportunity cost. Since a consumer choice always involves alternatives, every consumer choice has an opportunity cost.
You know that five dollars you got for your birthday? There are so many things you can spend it on, aren’t there? A toy boat to sail on the pond, a doll to play with or a jump rope. A lot of stores sell the very same things, where should you buy? You are a smart consumer if you pay the smallest amount for the thing you buy. Follow two stories of Josh and then see if you can make the smart spending decision by comparing prices. Everyone must choose. People, rich and poor, young and old, must address the problem of wanting more than they can have. For many people the problem of choice is most apparent when they enter the marketplace as consumers. Children and adults, confronted by a multitude of tempting consumer products, must learn to evaluate the options available to them. But how does one spend money wisely? Consumer educators often use the following suggestions as criteria for spending money wisely. Avoid impulse purchasing Bargain hunt Buy high quality products Use credit sparingly Reflect on which wants are more important than others
This lesson is about wants. Little Penguin is hungry and she wants to eat. This story is about how Little Penguin tries to get what she wants.
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This publication contains 16 stories that complement the K-2 Student Storybook. Specific to grades K-2 are a variety of activities, including making coins out of salt dough or cookie dough; a song that teaches students about opportunity cost and decisions; and a game in which students learn the importance of savings.
16 out of 18 lessons from this publication relate to this EconEdLink lesson.
Designed primarily for elementary and middle school students, each of the 15 lessons in this guide introduces an economics concept through activities with modeling clay.
9 out of 17 lessons from this publication relate to this EconEdLink lesson.
This revised and updated "how to" guide is a great way to start a classroom business with your students.
1 out of 7 lessons from this publication relate to this EconEdLink lesson.