M is for Money: An Economics Alphabet (Science Alphabet) PDF
Preview M is for Money: An Economics Alphabet (Science Alphabet)
Page intentionally blank M Money is for An Economics Alphabet Written by Debbie and Michael Shoulders and Illustrated by Marty Kelley A Economics is nothing new. Scientists is for Abundance believe the idea of economics—or managing resources—is about 10,000 years old. It If you grow a plentiful crop, began when the first humans settled in more than you’ll ever need, one place to grow crops. Prior to that, for nearly two million years, people survived Your abundance can be traded as hunters and gatherers. These nomads for meat, or tools, or feed. moved often from one place to another in search of wild plants and animals to eat. When they accumulated an abundance of food they were able to settle down. Since he no longer had to spend his time finding food, early man turned to growing food. This led to larger farms that could grow more crops. The ability to produce an abundance of resources—in this case, food —was necessary for the beginning of an economy. Hunters and gatherers still exist in the world today, but they are very few in number. When the early people no longer lived as nomads, they found it necessary to find more permanent shelters. Using natural resources like clay, earth, stone, and wood, they built B lodgings. In addition to homes they also built is for Build markets and temples. The more structures that were built in one place, the more Being a successful farmer people wanted to stay and live in that place. means a family need not roam. These permanent settlements helped early economies to grow as people traded for They can settle in one spot the food, goods, and services they needed and build a permanent home. to survive. As the number of permanent buildings grew in one location, a civilization formed. Civilizations are groups of people known for their unique culture or lifestyle. One of the earliest examples of this was Mesopotamia— called the “cradle of civilization.” Mesopotamia developed more than six thousand years ago. When the people in a civilization could count on food from farms and markets they had extra time that allowed them to pursue other activities, like art, music, and sports. It was these things that made a civilization unique. Civilizations helped to develop the idea of “division of labor.” More people living in one area let individuals focus on specialized jobs such as carpentry, bricklaying, or shopkeeping. C is for Civilization When many families come together in one common place they create a civilization by sharing their lives and space. When the people in a civilization produced D a surplus of resources, more items than any one family could use, they began bartering is for Demand and Supply or trading those items. A chicken farmer If there is not enough of something might trade for a bushel of corn or a sack of beans—this way everyone gets the supplies they say the supply is low. they need. This creates high demand for it and its cost will likely grow. Conditions like weather, insects, or diseases can harm a farmer’s crops or animals. This causes their supply to decrease and means they won’t have as much to barter or sell. But people still need these things. If the supply of corn is lower than normal, the demand is high. Prices might be raised on items that are in high demand. People are willing to spend more for those resources. If the weather is good, the insects few, and the crops healthy, a surplus exists. People can find plenty of those same beans, or eggs, or bushels of apples in the marketplace. When the supply is high, demand goes down. And the cost for those items usually drops as well. E is for Economics Economics is the study of how we get things we want and need, how we make and swap for goods, and why businesses fail or succeed. What, then, is economics? In general, people need food, shelter, and clothing. In a successful civilization people work together to make sure these items are available to everyone, but sometimes that does not happen. Economics is the system of how people obtain the resources they need. In an economic system, the people work together to ensure fairness in the ways goods and services are produced and distributed. Usually laws are needed to protect suppliers and buyers. A stable economic system forms when people work hard for the benefits they earn, trade is encouraged, and the laws of trade are honored. F is for Free Markets Free market means that you decide what to make, grow, or sell. Buyers, if they like what you have, will help your business excel. Free markets provide a way for an even exchange of goods or services based on supply and demand. It’s important in a free market for governments to have laws that make sure the sellers and buyers are treated fairly. Today people sell lots of different things such as toys, clothing, and food. Sellers want to receive a fair payment for items sold to cover the cost of production. If the buyer does not pay a fair price, the seller makes no money. To prevent that from happening there are laws that protect the seller. On the other hand, buyers want to be sure that the items they are purchasing are worth the purchase price. If a seller charges a high rate for a low-quality product, the buyer loses money. So there are laws to protect the buyer too. People believe that in societies where free markets are encouraged, if a person works hard enough they will be able to earn extra money. Free markets offer opportunities for citizens.
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