Lesson 16 — Activity 1: Economy? What's That?

You have probably heard the word economy before, but what does that word mean? An economy is a system for making and exchanging goods and services that people need and want. It involves money since this is the most common way for us to get what we need and want.

In our economy, we frequently use money to get goods and services.

Goods are things or items you buy, such as food, clothes, or furniture.

Services include work done for you, like babysitting, or activities you pay for, like going to a movie.

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Within a community, goods and services are used daily. For example, when you buy groceries from a supermarket, you are exchanging money for food. This means that the food is considered goods. When you call your friends on your cell phone, the telephone provider (for example, Virgin Mobile, Telus, or Bell Mobility) is providing the service of communication.

Every family has an economy. Your family must earn money in some way and then use this money to get the goods and services you need and want. 

All family members play a part in the family economy.  The money earned is spent to gain wants and needs.