Scarcity and Wants

Delaware Recommended Curriculum
This unit has been created as an exemplary model for teachers in (re)design of course
curricula. An exemplary model unit has undergone a rigorous peer review and jurying
process to ensure alignment to selected Delaware Content Standards.
Unit Title: Scarcity and Wants

Designed by: Anne Deinert
District: Christina
Content Area: Social Studies
Grade Level: 2
Summary of Unit
In today’s society, people have a wide variety of economic wants. These are wants that can
be satisfied by consumption of a good or service. Some wants are individual, whereas
others, such as a family’s desire for a home or a club’s desire for a recreation center, are
group wants. Many economic wants are private, such as food, clothing, shelter, medical
care, entertainment, and even leisure time, but others are public such as society’s wants for
highways, education, and national defense and are paid for with tax dollars. One fact that
emerges when analyzing wants is that people’s wants for goods and services exceed
society’s capacity to produce them. This problem is called scarcity.
Scarcity necessitates choice. If we cannot have everything we would like, we must choose
those things we want most. Consumers and producers, as families and groups within
societies, must continuously make choices about how to use the scarce productive resources
available to them to satisfy their wants.
In order to satisfy wants, individuals undertake a wide variety of activities. Individuals and
families sell their productive resources. For grades K–3, this means selling one’s labor. In
return for selling one’s labor, workers receive an income. Individual consumers and families
must decide after paying taxes how much of their income to spend and to save.
Important Note for Teachers

It is often traditional, when teaching this economic standard, to ask children to differentiate
between “needs” and “wants.” 1 You will find no mention of needs or an activity to sort the
two in this unit. There is no mention of the term “need” in the Council for Economic
Education’s National Voluntary Economics Standards or in the Delaware Economics
Standards. Wants are defined as “desires that can be satisfied by consuming a good,
service, or leisure activity.” Economics is about empowering people to make thoughtful
choices; to think about what they want most, to consider the resources they have available,
and then to thoughtfully prioritize their lists to obtain those things of utmost importance to
them. In this unit, students are introduced to the idea that resources are scarce, and
therefore they cannot have everything they want.
1
Gallagher, S. and Hodges, S., Let’s Teach Students to Prioritize: Reconsidering “Wants” and “Needs”, Social
Studies and the Young Learner 22 (3), pp. 14-16
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Important Note
The concept of taxes is introduced in this unit. Students learn that goods and services are
either public or private and that public goods and services are paid for by the government,
using tax revenue.
To illustrate what taxes are, you will be asking your students to pay you out of some type of
income they receive. In many schools, students are awarded PBS “dollars.” Their tax
money could come from these. If you do not use a PBS system, you will need to institute
some type of payment. This could be in the form of points awarded at the end of each day,
which are recorded on a chart kept by the student. Periodically, you will need to ask them
to subtract points as a tax payment. In return for their tax payments, you will need to
provide a public good or service that they may use if they pay their taxes. For example, an
electric pencil sharpener could be available, as opposed to the manual kind. A few minutes
of a game each day, or as often as is feasible, could be provided. It should be clear to the
students that these certain special goods and/or services are being paid for by their taxes.
You will want to establish this activity early in the unit, so that the students have enough
experience with it that they can discuss it near the end of the unit. You will find notes to
the teacher after some lessons to adjust the taxes or services so that the students
experience what happens when tax income is scarce.
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Stage 1 – Desired Results
What students will know, do, and understand
Delaware Content Standards

Economics Standard One K-3a: Students will understand that individuals and families
with limited resources undertake a wide variety of activities to satisfy their wants.
CCSS.Math.Content.2.NBT.B.5
Fluently add and subtract within 100 using strategies based on place value, properties of
operations, and/or the relationship between addition and subtraction.
CCSS.Math.Content.2.MD.C.8
Solve word problems involving dollar bills, quarters, dimes, nickels, and pennies, using $
and ¢ symbols appropriately. Example: If you have 2 dimes and 3 pennies, how many cents
do you have?
Big Ideas
 Scarcity
 Resources
 Wants
Enduring Understandings
 Due to scarcity, individuals, families, communities, and societies as a whole must make
choices in their activities and consumption of goods and services.
Essential Questions
 What do people want?
 Why can’t I have everything I want?
 How do people get what they want?
Knowledge and Skills

Students will know…
 Wants are unlimited.
 Resources for satisfying wants are limited.
 Scarcity exists because of limited resources.
 Individuals use their human resources to produce goods and services in order to gain
income which they use to satisfy wants.
 Individuals and families make decisions about dividing income between spending,
saving, and taxes.
Students will be able to…
 Explain the difference between a good and a service.
 Explain the difference between public and private goods and services.
 Explain how human capital is used to earn the income to satisfy wants.
 Explain the decisions that must be made about spending or saving income.
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Stage 2 – Assessment Evidence
Evidence that will be collected to determine whether or not Desired Results are achieved
Transfer Task – Part One (after Lesson 1)

This summative assessment is a transfer task that requires students to use knowledge and
understandings to perform a task in a setting or context.
The assessment and scoring guide should be reviewed with students prior to instruction.
Students should work on the task after lessons have been completed.
Essential Question Measured by the Summative Assessment

Prior Knowledge Now that you have learned what people want, why they can’t
have everything they want, and how they get the things they
can, you are ready to plan to earn and spend some income.
Problem Your class wants to study sharks and then go on a field trip to
the aquarium. Your classroom and library do not have all the
materials you need to study. Your school does not have the
money to pay for the busses and the tickets.
Role/Perspective You are the president of your class, and your job is to plan a
way for your class to get the materials needed to study sharks
and take the trip.
Product/ You will make a presentation to your teacher and principal
Performance explaining how the class will deal with the economic problems
you are encountering.
Criteria for an Your presentation will include the following:

Exemplary 1. A description of the goods and services included in the trip
Response that the class wants.
2. An explanation of problems with scarcity involved in this.
3. A description of the human capital available in the class and
how it will be used to earn income.
4. A plan for how the income received will be divided between
spending on your expenses for the materials and the trip,
and paying the taxes in your classroom.
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Rubric
Scoring Category
The presentation
provides… Score Point 3 Score Point 2 Score Point 1
A list of wants All goods and Most goods and Few to none of
divided into goods services are services are the goods and
and services. correctly correctly services are
categorized. categorized. correctly
categorized.
A description of the Description shows a Description shows a Description shows
scarcity affecting full understanding partial no understanding
the situation. of the meaning of understanding of of the meaning of
scarcity. the meaning of scarcity.
scarcity.
An explanation of Explanation Explanation Explanation
the human capital demonstrates a full demonstrates a demonstrates no
available with understanding of partial understanding of
appropriate how human capital understanding of how human capital
connections to is used to produce how human capital is used to produce
goods and services goods and services. is used to produce goods and services.
which can be goods and services.
produced.
A plan for The plan includes The plan includes The plan includes
spending, saving, all three only two one expenditure.
and paying taxes. expenditures. expenditures.
Points
Exceeds the Standard 12
Meets the Standard 9-11
Near the Standard 4-8
Total Score: ____
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Student Self-Assessment and Reflection
When students are required to think about their own learning, to articulate what they
understand and what they still need to learn, achievement improves.
-Black and William, 1998; Sternberg, 1996; Young, 2000
How a teacher uses the information from assessments determines whether that assessment
is formative or summative. Formative assessments should be used to direct learning and
instruction and are not intended to be graded.
The Checks for Understanding at the end of each instructional strategy should be used as
formative assessment and may be used as writing prompts or as small-group or whole-class
discussion. Students should respond to feedback and be given opportunities to improve
their work. The rubrics will help teachers frame that feedback.
An interactive notebook or writing log could be used to organize student work and exhibit
student growth and reflection.
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Stage 3 – Learning Plan
(Design learning activities to align with Stage 1 and Stage 2 expectations)
Lesson One
Essential Question
Background
In today’s society, people have a wide variety of economic wants. These are wants that can
be satisfied by consumption of a good or service.
Instructional Strategies
Strategy 1: Gathering Information

Elbow Partners
Prior to beginning this lesson you need to prepare a poster of the “Wanting Song.” 2 You will
also need to create either one large ABC book for the whole class, or if you wish to spend
more time on this part of the lesson, an individual-sized ABC booklet for each student.
These can be simple folded and stapled paper books, or durable booklets can be created by
cutting paper to fit inside sandwich-sized, zipper-top, plastic bags. The students can draw
on the papers, put them back in the bags, and then use brass fasteners to attach all of the
bags together in a stack, with the fasteners going through the bags near the zipper.
Distribute plain white paper to the students and have them fold it into fourths. Ask
students to draw pictures in each of the spaces on their papers to show some things they
would like to get or do for their next birthday. Have them turn to
The Wanting Song their “elbow partner” and discuss what they have drawn.
(Sung to the tune of

Instruct the elbow partners to give themselves each a number,
London Bridge is Falling
Down) either 1 or 2. Have two sets of partners meet with one another,
and ask the number one person from each set to share the
Wants are things I’d like drawings of the number two person and vice versa.
to have
Like to have, like to Bring the class back together and explain that all of the things that
have.
they have drawn are called wants. Introduce the “Wanting Song” to
Wants are things I’d like
to have. the students. Sing the song with the class, calling on individuals to
fill in the final blank with one of the wants from their drawings.
_ (child)____ wants
___________________
2
Lesson adapted from Wants from A to Z! Courtesy of the Council for Economic Education. For more economic
and personal finance lesson plans, visit http://store.councilforeconed.org.
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Explain to the class that they will be creating an ABC book of wants. Either ask students to
contribute one of their wants for each letter in a whole-class book, or allow them to create
individual booklets using all of their own wants and collaborating with other students to fill
letter pages for which they have no matching want.
Check for Understanding

 What is a “want?” Give an example of a want you have.
Rubric
2 – This response gives a valid definition with an accurate and relevant example.
1 – This response gives a valid definition with an inaccurate, irrelevant, or no example.
Strategy 2: Extending and Refining

Carousel Brainstorming
The following will create a large visual display in your classroom to reinforce what the
students will learn.
Prepare a bulletin board space and sentence strips prior to having the students work on the
Carousel Brainstorming. On the bulletin board, post a large, circular, ribbon top, like the
one at the top of a blue ribbon. Label the center of the circle, “We Want A Lot.” On
sentence strips, write the following stems:
a. I’m hungry. I want __________.
b. I want _______________ to play with.
c. I want ___________ for my bedroom.
d. I want __________ for my pet.
e. I want someone to __________.
Post the sentence strips in different parts of the room. Place a roll of adding machine tape
and markers under each one.
Note to teacher: The students will be travelling in groups to each of the sentence strips, so you may consider
additional sentences in order to keep group sizes small.
Divide the students into groups and send each group to one of the sentence strips. Allow
the students a few minutes to each record an answer on the adding machine tape that fills
in the blank. Instruct the students not to rip or tear the adding machine tapes. Signal the
students when it is time to move to the next sentence strip. You may need to allow a little
more time as they move to each strip so that they can read what previous groups have
written before recording their own answers.
Once the students have visited all of the sentence strips, hang them under the blue ribbon
top that you have posted on the bulletin board.
This portion of the lesson is adapted from Winning Wants, Master Curriculum Guides in Economics, Teaching
Strategies K-2, National Council on Economic Education.
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 How might your wants be different from or the same as an adult’s wants? Use an
example in your answer.
Rubric
2- This response gives a valid explanation with an accurate and relevant example.
1- This response gives a valid explanation with an inaccurate, irrelevant, or no example.

Graphic Organizer
Create a personal list of wants that you would be willing to share with your class. Be sure
to include some items that are goods and some that are services, but do not reveal this to
the students. They will discover this in the following activity.
Create a T-chart on the board or on an overhead transparency. Explain to the students that
you are going to share a list of your own wants, but you are going to sort them into two
groups. Tell them that you would like them to figure out how you are sorting them. Begin
listing your wants on the T-chart, alternating between goods on one side and services on
the other side. For example:
(Goods) (Services)
Car Haircut
Groceries Computer repair
New carpet Yard care
Flower bulbs Newspaper
delivery
Books Vet visit
After listing half of your wants, ask the students how the items on one side are different
from the items on the other side. They should notice that on one side are tangible items,
and the others are things that people do for you. If needed, help them come to this
conclusion.
Once this has been established, inform the students that we call the tangible things “goods”
and the things people do “services.” Add these labels to the top of the T-chart. On
sentence strips, write the words “good” and “service” and add the definitions of each, as
worded by the students. Post the definitions next to the T-chart. Continue to add your
wants to the chart, but now ask the students to tell you on which side to write each one.
After deciding where it should be written have the class chant, “______ is a good (or
service).”
Have students return to the ABC book(s) that were created in the first part of the lesson.
On each page, add the word Good or Service.
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 Show students the list of Mom’s errands for the day (Visual 1). Have students create
a T-chart of the wants under goods and services.
Rubric
2- The student has placed all of the items from Mom’s list in the correct columns.
1- The student has placed no more than two items in the wrong column.

Eye Spy Goods and Services
Give each student a paper towel tube. Explain that they will be creating a telescope called a
spyglass. A spyglass was used by sailors and explorers to see things that were far away or
difficult to see.
Allow the students some time to personalize their spyglass with markers.
Take a walk around the school and have the students spy items that are goods as well as
people who are providing a service. Keep a list as students name them.
Upon returning to the classroom, post the list as a reminder of what the children have
learned about goods and services.
Adapted from: “Working for Income”, Financial Fitness for Life: Pocket Power Teacher Guide, National Council on
Economic Education.

 Hand out two blank pieces of paper to each student. Each child should fold each
piece of paper in half twice and then bend down the upper-left corner. When the
paper is opened, the creases in the paper have created four rectangular quadrants
and a diamond-shaped area in the center, as illustrated below. (The wording in the
example will not be used.)
Have the students label the center of one paper GOODS and the other SERVICES.
Ask them to illustrate the outer four areas with examples of each.
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Graphic Organizers
Remind students of the goods and services they identified in the previous lessons. Explain
that today they are going to put goods and services in two new categories.
Ask the students if they would allow anyone else to use their toothbrush. When they
respond negatively, ask them why. Ask them if just anyone is allowed to come into their
home, and again, ask why. After discussing these two ideas, explain that their toothbrush
and their home are private.
Have students turn to their “elbow partner” to name two other things that are private, and
have the pair record these on a sticky note. Post the word and the definition on the board
and have the children place their sticky notes underneath.
Ask the children, “How are our school and the street out in front of it different from your
toothbrush and your home?” When they conclude that everyone can use them, tell them
that these items are public. Once again, have students name two other items that are
public with their “elbow partner,” put them on a sticky note, and put them up under the
word and the definition.
Distribute the story “A Day in the Life of Maxine,” Handout 1. Have the students read the
story alone, with a partner, or with you, depending on the level of support needed. After
reading the story, instruct the children to underline all of the goods and services mentioned.
On the board, create a t-chart. As the students report the goods and services they
underlined, write them on the left side if they are private goods and services (alarm clock,
clothes, cereal, toast, juice, lunch, book bag, play, dry cleaning, haircut, car, home, video
game, and bed) and on the right side if they are provided by the government (crossing
guard, sidewalk, street, school bus, Southern Elementary School, fire station, recycling
center, state park, civic auditorium, public library, textbook, traffic light, and police officer).
Note to teacher: Completed sample

Private Public
Alarm clock Crossing guard
Clothes Sidewalk
Cereal Street
Toast School bus
Juice Southern
Elementary
School
Lunch Fire station
Book bag Recycling
center
Play State park
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Dry cleaning Civic
auditorium
Haircut Public library
Car Textbook
Home Traffic light
Video game Police officer
Bed
Explain to the students that some of the goods and services they found in the story are
private and some are public. Ask them to reread the right half of the chart to themselves.
Tell them that, on your signal, they will raise one hand if those goods and services are
private and two hands if they are public.
After the students have predicted the category under which the right half of the chart falls,
begin to discuss each of the items. Begin by asking who paid for the breakfast cereal. Ask
the students who used the cereal. Because the cereal was paid for by her mother and used
by Maxine, it is a private good. Ask them if Maxine’s haircut was free, who paid for it, and
who used the service. Again, this is an example of a private service. Each individual who
wants a haircut pays for it directly to the hairdresser and another individual cannot use that
service unless they pay for it themselves.
Divide the remaining 13 items on the list among the class and ask them to write down who
paid for the good or service and who used it. (Handout 2 is available as a frame if needed.)
Then allow time for students to exchange papers and read what others have written about
each of the goods and services. Label the right-hand column “Private.”
Ask the students if Maxine or her mom paid for the items on the left-hand side of the chart
when Maxine used them. Ask them if they know who provides those goods and services.
Explain that they are provided by the government—the people who are in charge of the city
of Southville. The government gives us public goods and services or things that everyone
uses. Label the left-hand side of the chart “Government.”
Adapted from “We’ve Got Goods,” Focus: Grades 3-5 Economics, National Council on Economic Education
Fold a piece of paper in half. Think about what you will do after you leave school today. On
one side of your paper, make a list of three public goods or services you will use. On the
other side of your paper, make a list of three private goods or services that you will use.
Strategy 6: Application
Cooperative Learning
Divide the class into groups of 2-3 so that the students can share the picture cards from
Handout 3. As an alternative, make enough copies of the cards so that every student can
have one, even though there will be duplicates. Ask the students to decide if their card
represents a private or public good or service. Have the groups tape their cards under the
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headings on the board. Students who do not agree with the placement of a card should
explain why it is misplaced.
Hand out a sheet of writing paper to each group. Tell the students that they are going to
write their own “Day in the Life of ______” story, like the one they read about Maxine. The
stories should include examples of public and private goods and services. Have each group
write an introductory paragraph and then the first paragraph of their stories.
Have the groups trade papers and then each group will add a second paragraph to the
story. Repeat these steps by having the next group add a third paragraph. Repeat a third
time so that another group can add a closing paragraph.
Allow the students to share their stories. Collect them and make copies so that there will be
enough stories for each child to have a copy of one of them.
Distribute the stories that were written by the class. Provide each child with lined paper as
well. Instruct the children to first circle all the goods and services in the story, and then list
them in a t-chart under the headings Public and Private. Handout 4 is available to be made
into an overhead to model this for the students if you choose.

Distribute a sheet of plain paper to each child. Have them fold it twice so that it is divided
into four boxes. Put these headings on the blackboard: Public Goods, Public Services,
Private Goods, and Private Services. Explain to the children that they will write those
headings in the boxes and draw one or two wants in each box.
Prior to beginning Lesson Two, explain to the students that the good/service that you have
been providing with their tax dollars has gotten more expensive to provide. They will either
have to pay more in taxes to continue to have this, or you will have to provide it on a less
regular basis. Discuss with the class what they would like to do and implement the revised
plan.
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Lesson Two
Essential Question
 Why can’t I have everything I want?

Radio Reading
Prior to beginning this lesson you will need to decide how to divide up the poem Toys for Me
(Handout 5) so that each child in your class has a part to read. Prepare individual slips of
paper with those parts on them.
Tell the class that they will be reading a poem about a girl named Scarcity and her mother.
Scarcity has a problem understanding something, and her mother tries to explain it to her.
Distribute the parts of the poem. Allow the children time to read their parts to themselves.
Then, ask them to choose a partner, and have the partners read their parts to each other.
Give the students a chance to change partners once or twice so that they have rehearsed
the parts several times for fluency.
Arrange the students in a circle so that the poem will be read in the correct sequence. Have
the students read the poem aloud once or twice.
After reading the poem, put the following questions where the children can see them, and
have them think-pair-share possible answers:
 What was it that Scarcity did not understand?
 What did her mom mean by:
“This AND that
The world can never be
It’s this OR that-
Can’t you see?”
 What did her mom mean when she said:
“Time and money
Will always make you choose.”
Discuss with the class that Scarcity’s mother was trying to help her understand that we
cannot have everything we want. We do not have enough time or money to have
everything. Her mother was telling her that time and money are limited resources. Post
these words on the board.
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Ask the students to think about how they would explain the idea of limited resources to
someone else, and then brainstorm as a class to come up with a definition (not enough
goods and services).
Write the word “scarcity” on a sentence strip and post it on the board. Tell the children that
this is not only the name of the character in the poem, but it is also another name for what
happens when people have limited resources. Whenever there is not enough of something
there is a scarcity. (Scarcity is the condition of not being able to have all of the goods and
services one wants.) Add the definition to the sentence strip.
Post an additional sentence strip showing the word “satisfy.” Tell the children that this is
the word we use when we talk about getting what we want. When we face scarcity we
cannot satisfy our wants.
Have the students count aloud with you as you go around and point to each student. Ask
them how many students are in the class. Then have them count the number of chairs in
the room with you. Ask them, “If everyone wanted a chair, could they have one? If there
is enough of something, is there a scarcity?” “So, we do not have a scarcity of chairs for
this class. Can we satisfy that want?”
Next, have students count aloud with you as you count computers or some other item of
which there are a smaller number than the number of children in the class. Repeat the
previous questions, but now the class will come to the conclusion that there is a scarcity of
the current item that you are discussing, and we cannot satisfy that want.

 Have students talk to an elbow partner and come up with an item in the room that is
scarce or not scarce. Ask them to write the number of children on a piece of paper
as well as the number of the item that they counted.
 Have each pair of students share with another pair and explain whether there is a
scarcity or not of the item they chose to count and explain why. Have them
determine if the want would be satisfied.
 Post the papers under the word “scarcity” and its definition.

Copy enough Scarcity Puzzles (Handout 6) so that each child in the class will have a half.
Cut them apart and mix them up.
Distribute the puzzle halves to the class. Tell the students to find the other half of their
puzzle and then, with their partner, decide if the situation shows scarcity. Once all the
partners have found each other and had time to discuss, have each team share their puzzle
with the class and explain what the want is and whether or not scarcity exists in that
situation.
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One-Minute Writing Prompt: Describe a time when you wanted something, but you
experienced a scarcity.
Rubric
2 – The journal entry demonstrates that the child fully understands the concept of scarcity.
1 – The journal entry demonstrates that the child has a partial understanding of scarcity.
Strategy 3: Application
Scarcity Scenes
Divide the class into groups of 3-4 and distribute the role-playing strips (Handout 7). Allow
the groups some time to create a brief skit about the scenario on their role-playing strip.
As each group presents their skit, have the rest of the students note the scarcity depicted in
the skit. Handout 8 is available for support if needed.

 Collect the students’ notes after they have viewed the skits. Check for accuracy.
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Scene One: money, income Scene Five: income, money
Scene Two: space Scene Six: space
Scene Three: fish Scene Seven: basketballs
Scene Four: space, seats Scene Eight: popcorn
Rubric
2 – The student has accurately named 6–8 scarce goods or services.
1 – The student has accurately named 3–5 scarce goods or services.
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Lesson Three
Essential Question

K-I-M
Remind the students of the poem about Scarcity. Her mother told her that time and money
would always make her choose—that there is a scarcity of time and money that keeps us
from having everything we want.
Ask the students to tell a partner about a time when a parent told them that there was not
enough money for them to get something they wanted. Ask a few of the children to share
their stories.
Ask the class where people get the money that they spend. Most individuals get money by
working. Ask the children if any of them get money at home by doing chores. Introduce
the word “income” on a sentence strip, and explain that we will now call the money they get
“income.”
Pass out a blank sheet of paper to each child. Have them fold it in thirds. In the first box,
on the left, have them write the word INCOME. In the center box, have them write the
definition of the word. Then brainstorm a picture that they might draw to represent the
meaning of the word. Finally, have them write a sentence to describe how they or someone
they know earns income.
A sample is shown here for the word defeat.

Post these pictures under the sentence strip with the word “income.” As the students bring
their paper up to add to
the display, ask them if
they or their parent are
working to make a good
or service. Add the
definition of income to
the sentence strip:
money you earn for
working.

Graphic Organizers
Display the story “Penny’s New Business”—Visual 2. Echo or choral read the story with the
class. Distribute the graphic organizer (Handout 9). Have the students fill out the sections
labeled “service” and “income” by writing a phrase to describe how those two concepts are
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presented in the story. (Penny provides a service by walking Mr. Lopez’s dog. She gets
paid money, which is her income.)
Draw the students’ attention to the third section of the organizer, which is labeled “Human
Capital.” Tell students that this means the skills that a person has that they use to provide
a good or service.
Ask the students to re-read the story with you and to give you a thumbs-up when they see
a skill that Penny has, that she plans to use when providing her dog-walking service (she
likes dogs, dogs like her, she has a way with dogs, like to talk to people, can make toys
from recycled materials, knows how to bathe a dog, can cook and has dog treat recipe.)
After re-reading the story and identifying her skills, have the students write the list on their
organizers. Post the words and the definition on a sentence strip.
Introduce the word “producer” on a sentence strip. Tell the class that this is what we call
people who provide a good or service. A producer uses their human capital, along with
other resources, to create a good or service for other people. Ask them to write this term
on their graphic organizer in the human capital section. Add the definition to the sentence
strip.
On the back of the organizer have them copy, and complete, the following sentence frame:
Penny is a _____________. She used her ______________ _____________ to
________________ a ______________. Her human capital was a
_________________ for her service.
Have students use the words on the sentence strips that have been posted so far in this
unit. (Penny is a producer. She used her human capital to produce a service. Her human
capital was a resource for her service.)
Conduct a Think-Pair-Square strategy3. Ask the children to think about what one of their
parents does to earn income, and what human capital that parent has to help them produce
the good or service they provide. Have them share this information with another student,
and then have each pair of students share with another pair.

3
This activity is built on the foundation of Think/Pair/Share without the class reporting. Then, after
Think/Pair/Share takes place the partners team up with another set of partners creating groups of four students.
Each group compares the two sets of answers or solutions. From the two, the group decides on a compromise.
The whole class reports out on their decisions.
19
Choose one of the following people who work in our school.
TEACHER CUSTODIAN SECRETARY PRINCIPAL CAFETERIA WORKER
 What good or service does this person produce?

 What human capital does this person use as a resource to produce that good or
service?
 What income do you think they get for their good or service? (This may produce
some amusing responses, but it will also check to see if students understand
income.)
Handout 10 is available if the students need the support.
Rubric (for 2nd and 3rd bullet only)

2 – This response accurately identifies both the good or service produced and the required
human capital.
1 – This response accurately identifies either the good or service produced or the required
human capital.

Sentence Strips
Ask the children to think about the skills they have. What are they good at doing? Have
them make a list.
Ask students to think about a good or service they could produce using the skills they just
listed. Compare with an elbow partner.
Display the words “Human Capital” on a sentence strip. Explain that the skills they just
discussed with their partners are their human capital.
Distribute the two-page Handout 11. Have students cut out the T-shirt and the pocket and
glue the pocket to the T-shirt. They will need to put their name on the shirt and write or
draw a picture to tell what good or service they might produce. Then, they will need to
write the skills they would use to produce the good or service in the boxes on the handout,
cut those out, and put them in the pocket.
Once the T-shirts are finished, the students can trade them to share their work. Add the T-
shirts to the display of words and other products from this unit.
Review with the students the ideas they illustrated on their T-shirts. Ask them what wants
they might satisfy using the income they receive.
Refer to the list of wants you used in Lesson One. Ask them how you might satisfy those
wants. Explain that you use your human capital to provide the service of educating them.
Then, you use your income to satisfy your wants. You “spend” your income to get them.
Post the word “spend” on a sentence strip with the definition: to use money to buy
something now.
20
Tell the students that, even though you want all of those things, you do not have enough
income to get all of them right now. Ask them for ideas as to what you should do. If they
suggest that you do something to get more income, tell them that your time is scarce and
you cannot get another job.
Tell the children that you save some of your money to get some of the things you want.
Post the word “save” on a sentence strip along with the definition: not spending money now
but instead keeping the money to use to buy things in the future.
Model for the students how you might decide which wants to spend for now and those for
which you might save. When discussing this, be careful not to say “I need this now.”
Instead phrase your decisions according to “I want this right now, but I can wait for this
want until later.” Or, “It is important to satisfy this want right away, but this one can wait.”
Remember not to introduce the word need, as it is not an economic concept.
Note for teachers: The decision-making process and the weighing of costs and benefits will be addressed in
another unit for Economics Standard One K-3b. For now, the sorting is simple, without reasoning why we want
some things right now and some can wait.

 Make a list of some of the wants that your family has.
 Circle those wants that are important right now in green and write the word “spend”
in green at the top of your paper.
 Circle the wants that can wait in red and write the word “save” in red at the top of
your paper.
 Why is it important to separate wants that are important right now from wants that
can wait? Explain your answer.
Rubric
2 – This response gives a valid reason with an accurate and relevant explanation.
1 – This response gives a valid reason with an inaccurate, irrelevant, or no explanation.

Recall with the students the discussion the class had about private vs. public goods and
services, using the stories that they wrote. Ask them to remind a neighbor of the difference
between private and public.
Remind them that they decided whether to spend or save income for their wants in Strategy
3. The things they wanted were private wants.
Ask them to recall who provides the public goods and services that people want. Ask the
students if they have to pay to go to a library, ask a police officer for help, or have the mail
delivered.
Explain that the government pays for those things using money that is collected from people
who are earning income. That money is called “tax.” Post this word on a sentence strip
along with the definition: payments that people and businesses are required to make to the
government.
21
Note to teacher: Students may point out that you do have to pay to buy a stamp to mail a letter and you pay to
use the state parks. These are fees, and they are also collected by the government in order to provide public
goods and services.
Debrief the class about the tax system that has been in place in the classroom. Ask the
students to tell how much they were paying in taxes at the beginning of the unit. Ask them
what was provided to them, and paid for with their tax money. Ask what happened after
Lesson One—what scarcity occurred? (There was not enough tax money to pay for the
increased cost of providing the public good or service.) What choice was needed? Ask
students if they can think of another public good or service that they might like to have
available in the classroom and how it would be paid for.

 How do people satisfy their wants by paying taxes? Use an example to support
your answer.
Rubric
2 – This response gives a valid explanation with an accurate and relevant example of a
public good and/or service.
1 – This response gives a valid explanation with an inaccurate, irrelevant, or no example of
a public good and/or service.
Strategy 5: Application4
Divide the class into groups, which will be families. Explain to the children that each family
will be receiving a series of paychecks—there are four paychecks, and the activity can be
conducted once a day for four days, and they will be deciding how to use the money for the
family. They will need to decide how to spend, save, and pay taxes.
Distribute the Family Money Worksheet (Handout 12) and review it with the children. Have
them gather in their families, and give each family a paycheck (Handout 13). Paychecks
should range from $300 to $400 in order to allow enough money for basic wants and give
each family some money to save. Allow the groups time to fill out the worksheet for week
one.
When the families get together for the next sessions, distribute paychecks and some of the
Unexpected Surprises Slips (Handout 14).
After the fourth session, hold a debriefing session. Have each child fill out the reflection
sheet (Handout 15). Partner children from different families to share what they have
written.

 One-minute journal prompt: Why can’t we have everything we want?
Rubric
2 – The answer demonstrates a clear understanding of the fact that scarcity forces
individuals to make choices.
4
Adapted from: http://www.learnnc.org/lp/pages/3008.
22
1 – The answer demonstrates a vague understanding of the fact that scarcity forces
individuals to make choices.
0 – The answer is inaccurate or unrelated to the question.
Note to Teacher: Students will need some support in preparing for the transfer task.
They will need to brainstorm, with you, a list of books, videos, games, guest speakers,
and/or other items they would like to have to study sharks. You will need to provide some
estimated prices for these items. We would suggest using easy to use numbers that are
close to realistic. For example, books might cost $10 each. They will also need to have the
cost of a bus and the price of aquarium tickets, again, in easy and somewhat realistic
numbers. They must also know that they cannot earn all the income they need in one day
of providing goods and services. Set a limit for how much they can earn each day so that
they have almost, but not quite enough, money for the items on their list of wants after
working for five days. The purpose of setting this up is so that they experience scarcity and
have to make choices about what they will purchase with the income they earn, similar to
what they experienced in the family budgeting activity. Once you have had the class
discussion to set this up, the students can complete the transfer task independently.
23
Visual 1
Mom’s To-Do List
Buy groceries
Get car washed
Get gas
Pick up dry cleaning
Get pet food
Get haircut
24
Handout 15
Maxine’s Day
Maxine is a little girl who lives with her mother and her sister in the community of
Southville. Maxine likes school and has many friends. Here’s what a day in Maxine’s life is
like.
Maxine turns off her alarm clock and puts on her clothes. She has a breakfast of cereal,
toast, and juice. Grabbing her book bag and lunch, she walks along the sidewalk to school.
At the corner, the crossing guard makes it safe for her to cross the street. On the other
side, she waves to her friends arriving on a school bus.
Maxine and her classmates go to Southern Elementary School. Today the students are
going on a field trip to learn about their community. They visit a fire station and recycling
center, and then see a play at the city’s civic auditorium.
In the evening, Maxine tells her mother she needs a ride to the public library to get a book
for a report for school. On the way there, Maxine’s mom stops off to pick up her dry
cleaning and also takes Maxine to get a quick haircut. On the way home, Maxine’s mother
almost has an accident with her car because she does not know about a new traffic light
that has been put up. A police officer reminds her to be more careful in the future.
At home, Maxine does her homework, plays a video game with her sister, and reads the
book from the library before going to bed.
Well, that’s a day in the life of Maxine. Maybe you do the same things that Maxine does
each day. Maybe you enjoy some of the same activities Maxine does.
5
25
Handout 2
Name of good or service
Who paid for it?
Who used it?

It is a private good or service.
*********************************************
Who paid for it?
Who used it?

**********************************************
Who paid for it?
Who used it?

***********************************************
Who paid for it?
Who used it?

26
Handout 3
Goods and Services Cards
hamburger television
bicycle
pet supplies
27
car repair amusement park rides
house painter traffic lights and signs
28
mail service
police protection
bridge schools
29
snowplowing highways garbage collection
park playground
movie theater
30
Handout 4
Private Public
Goods and Services Goods and Services
31
Handout 5
TOYS FOR ME
by C.D. Crain
On my birthday I asked
My Mother to buy
This baby doll that burps
AND that wooden bird that chirps.
“NO!” was her reply

With that glint in her eye
“But you may choose this doll that burps
Or that wooden bird that chirps.”
“But Mommy!” I did cry

“It’s unfair to make me choose
I really NEED them both
Or I’ll just DIE!”
Mother gave a grin

She pinched my girlish chin
She squeezed my crusty nose
Until I wiped it on my clothes.
She said, “Time and money

Will always make you choose
Remember: this OR that
It’s a rule you mustn’t lose.”
On Christmas Eve I asked

My Mother to buy
This pink and purple bike
AND that shiny kite I like.
Mother shook her head,

“Now Scarcity, you know I said
You may choose between this bike
OR that shiny kite you like.”
“But Mommy,” I did cry

I can’t pick and choose.
I really NEED them both
Or I’ll just DIE!”
32
Mother softly said
“Do you think that toys are free?
That toys grow like leaves on a MAGIC TREE?
This AND that -

The world can never be.
It’s this OR that -
Can’t you see?”
“ENOUGH!” I yelled, “ENOUGH!

I’m tired of all this STUFF...
This isn’t fair; it isn’t right

I NEED more toys to play and use
So give me every toy I like...
It’s just not right to MAKE ME CHOOSE!”
Well...
I saw Mother wink at the big black clock

That was hanging on the wall singing tick-tick tock
And then, I’m not kidding, the clock began to talk
It said, “Refuse to choose and you will LOSE!”
Pouting, I was sent to my room for a spell

I guess to be punished for my childish yell
But after an hour I was happy to see…
In my room, growing tall, was a giant magic tree.
The tree pierced the roof. My room was filled with sunny light
I grabbed a lowly branch and climbed up to the eaves
What a FEELING! How AMAZING! What an awesome sight!
Toys began to sprout, just like leaves.
Toys, toys, the tree was filled with toys

Lots of toys, like big bright bikes
And other things that make loud noise.
Toys beyond my WILDEST dreams -

Pretty dolls, lots of balls, and super toy machines.
33
I squeezed the dolls
I hugged a ball
I stroked the trucks
I loved them all.
Then balanced on my toes with poise

I quickly started plucking toys.
To reach every limb I used a broom

I picked my toys by the sun, then the moon
Not once did I use my time to choose -
I was busy throwing every toy, on the floor inside my room.
Finally, I reached the tree’s tip-top

And grinning, there on top, was that big black clock
It made not a sound - not one tick-tick tock
For time had stopped
What a tick-tick SHOCK!
The clock smirked and said: “I don’t like to fuss

But Scarcity, dear girl, your time is up
This OR that - this rule you did abuse
Because you would not choose, it’s time for you to lose.”
I grabbed that clock; it was such a brat

Then I whacked it HARD, with the broom as a bat
I screamed, “NO MORE RULE
NO MORE THIS OR THAT!”
Silence, then a sigh - the clock was gone like a snap.
Now that there were no more toys on the tree

I climbed down, quickly, feeling fine and free
For there was no more clock to be
A source of time to punish me.
Besides, I had toys in my room to see.
OH! … NO! …
I rubbed my blurry eyes
All my toys were smashed and crushed -
Just a heap of junk and some buzzing flies.
34
My eyes, so tired, slowly closed to sleep
I awoke, the tree was gone - no sounds, not one peep
I sniffed, rubbed my nose, and slept some more
And dreamed of the toys that were mine before.
LOVE! REJOICE!
I heard my Mother’s voice
With Christmas cheer, she called my name
I was relieved; she looked the same.
And that black clock?

It looked real swell
And the sound of time made me feel well.
Such a special Christmas

I hugged Mommy – what a saint
I got to CHOOSE the perfect gift …
It was the bike, without complaint.
From “Toys for Me,” an EconEdLink lesson:

http://www.econedlink.org/lessons/index.php?lesson=517&page=teacher
35
Handout 6
Scarcity Puzzles
36
37
38
39
Handout 7
Scarcity Scenes
Note to teacher: You can alter the numbers of participants in each scene so that
every member of your class can participate.
Scene One: Two parents and a child are talking about what the child would like for a
birthday present. The child has a list of four things that he or she wants. The parents are
telling the child that they cannot get all of the things on the list.
Scene Two: The members of a city government are talking about what to build on an
empty lot. Some of the members want to build a playground, and others want to build a
new movie theater. The lot is only big enough to fit one of these.
Scene Three: A chef is in a restaurant kitchen. Two waiters come into the kitchen and tell
the chef that their customers have ordered the fish special. There is only one fish left in the
fridge.
Scene Four: A small plane is getting ready to take off to fly to Hawaii. Four passengers
get on the plane, but there are only three seats left.
Scene Five: Two friends go to the store to buy candy. They choose several boxes of their
favorite candies. When they get to the cash register, the total for their candy is $8.00.
When they take all their money out of their pockets, they have just $6.00.
Scene Six: Four ants are walking through the forest when suddenly it starts to rain really
hard. Then there is a flood. The ants scramble to climb up on a stick, but there is only
room for three ants on the stick.
Scene Seven: Three children go to basketball practice. They all want to practice jump
shots, but they find only two basketballs in the gym.
Scene Eight: Four friends are going to watch a movie at home. They each want a whole
bag of popcorn to eat while they watch the movie. They find two bags of popcorn in the
closet.
40
Handout 8
Scarcity Scenes Notes
Scene Number_______________
What was the scarcity problem in this skit?
*****************************************************************
*****************************************************************
*****************************************************************
*****************************************************************
41
Visual 26
Penny’s New Business
Penny was sitting on her porch counting the money she had earned for walking Mr. Lopez’s dog,
Peluch. She was so proud of herself. Then she heard a bark and looked up to see Mr. Lopez and
Peluche walking down the sidewalk toward her.
Mr. Lopez called out to Penny. “Do you want to join us? It’s such a beautiful day. We’ve decided to
go for a walk.”
Penny carefully put her money into the pockets of her new jeans as she walked toward Mr. Lopez.
She said, “You know, Mr. Lopez, I was just now counting the money I earned. It’s the money you
called my income because I earned it by working. I really like earning income. I sure wish I could
earn some more. Do you need me to walk Peluche for you again?”
Mr. Lopez laughed. “No, Penny. I want to walk Peluche myself because I need to exercise my sore
ankle. But you surely provided me with a valuable service by walking Peluche after I hurt my ankle. I
was glad to pay you for that service.”
“Do you think other people in the neighborhood might want me to walk their dogs? That’s a service I
like to do! Is anyone sick or hurt? I’m a good dog walker,” Penny said. “I’d like to do that for lots of
people and earn a bunch of income.”
Mr. Lopez agreed with Penny. “You sure are a good dog walker!”
“Wow, thanks, Mr. Lopez. I think I’ll call my service Penny’s Dog-Walking Service. I’m going to make
lots and lots of income and I’ll be rich.”
“Now, hold on a minute!” said Mr. Lopez. Providing a service like that is hard work.”
“I don’t care. Working hard would be fun if it is walking dogs. I like dogs.”
“And my dog likes you. You do seem to have a way with animals. That would be a good skill to have
in the dog-walking business,” said Mr. Lopez.
As Penny walked along with Mr. Lopez, thinking about this new idea, she began to get more excited.
“I am good at talking with people, too. So I could talk to all the neighbors to tell them about my new
service,” she said.
Penny began to talk faster and faster as she thought of more and more ideas for her new business. “I
could make toys from things I have around the house. I know how to give a dog a bath too, and I
saw a recipe in my cookbook for dog treats.”
Penny and Mr. Lopez stopped at the end of Penny’s driveway. “Well, Penny, it sounds like you have a
lot of planning to do!”
“I do, Mr. Lopez, and I can’t wait to get started!”
6
Adapted from “Working for Income,” Financial Fitness for Life, Pocket Power Teacher Guide, National Council on
Economic Education
42
Handout 9
Penny’s New Business
Income
Service
Human Capital
43
Handout 10
Circle one of the jobs below, and then fill in the information about that job.
TEACHER CUSTODIAN SECRETARY PRINCIPAL CAFETERIA WORKER
Does this person produce a good or service? What is it?
What human capital does this person use to produce a good or service?
What income do you think this person gets by producing this good or service?
44
Handout 11
Production in My Pocket
45
Handout 11 continued – Production in My Pocket
MY
HUMAN
CAPITAL
Cut out the pocket above, and glue it to the T-shirt. Be careful to put the glue only on the
left, right, and bottom edges.
In the boxes below, write one of your skills in each box. Cut them out and put them in the
pocket on your t-shirt. Do not glue these.
46
Handout 12
Family Money Worksheet

Each week, your family will receive a paycheck. Everyone in the family will talk and decide
how to get the things you want.
You must pay $5 each week for taxes.
Your family has these wants:
Groceries $50 for a week’s food New TV $150

House payment $20 a week Videogames $50
Vacation $400 Cable $15 a week
New clothes $50 Pool membership $20 a week
Gas for car $30 for a week’s gas Insurance $10 a week
Electricity $15 a week Eating out $20 each meal
School supplies $20 New car $600
47
Fill out this worksheet to show what your family has decided.
Week One
How much was your paycheck?
What were your expenses?
What was the total that you spent?
How much was left over?
What does the family want that you are saving for?
Week Two

How much did you spend? And how much was left over?
_______________________________
Did you have any income left to put in savings? How much is in your savings now?
Can you buy what you were saving for?
Week Three

What was the total of what you spent?

Did you have any income left over? How much is in your savings now?
_______________________________
Can you buy what you were saving for?
Week Four

What was the total of what you spent?
Have you spent your savings?___________ How much is left in your savings?
What did you spend your savings money on?

Handout 13
Paychecks
Family Bank Paycheck 1

123 Any Street Date___________
Your Town USA
Pay to the order of The___________________________Family $________
_________________________________________Dollars
___________________________
Memo: Income for the goods and services you produced

Your Town USA
Pay to the order of The___________________________Family $________
_________________________________________Dollars
___________________________

Your Town USA
Pay to the order of The___________________________Family $___________
_________________________________________Dollars
___________________________

Your Town USA
Pay to the order of The___________________________Family $_____________
_________________________________________Dollars
___________________________

Handout 14
Unexpected Surprises Slips
Someone had to get a tooth pulled.

Pay the dentist $50.
Unexpected Surprise!
The car needs a new tire.

Pay $40.
Someone was texting too much.

Pay $10.
The dog needs a shot.

Pay $10.
The roof leaks!

Pay $100 to get it fixed.
The washer broke.

Pay $50 to get a new one.
Handout 15
Reflection Sheet
Think about how your family decided to spend and save money.
What wants did you decide you would pay for right away, every week?
What wants did you decide to wait for?
Were you able to save enough money to get the wants that you waited for, or would you
need more time to save?
How did scarcity affect your family’s decisions?
*************************************************************************
Think about how your family decided to spend and save money.
What wants did you decide you would pay for right away, every week?
What wants did you decide to wait for?
Were you able to save enough money to get the wants that you waited for, or would you
need more time to save?
How did scarcity affect your family’s decisions?

Handout 16
Transfer Task Frame

Goods and services needed:
Human capital we can use:
How we will use the human capital:
How much income you think you will have:
Expenses:
Plan for getting our wants:

Scarcity and Wants

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Delaware Recommended Curriculum

Unit Title: Scarcity and Wants

Important Note for Teachers

Delaware Content Standards

Knowledge and Skills

Transfer Task – Part One (after Lesson 1)

Essential Question Measured by the Summative Assessment

Criteria for an Your presentation will include the following:

Total Score: ____

Strategy 1: Gathering Information

(Sung to the tune of

Check for Understanding

Strategy 2: Extending and Refining

Strategy 3: Extending and Refining

Strategy 4: Extending and Refining

Check for Understanding

Note to teacher: Completed sample

Check for Understanding

Strategy 1: Gathering Information

Check for Understanding

Strategy 2: Extending and Refining

Check for Understanding

Strategy 1: Gathering Information

A sample is shown here for the word defeat.

Strategy 2: Extending and Refining

Check for Understanding

TEACHER CUSTODIAN SECRETARY PRINCIPAL CAFETERIA WORKER

 What good or service does this person produce?

Rubric (for 2nd and 3rd bullet only)

Strategy 3: Extending and Refining

Check for Understanding

Strategy 4: Extending and Refining

Check for Understanding

Check for Understanding

Mom’s To-Do List

Get car washed

Pick up dry cleaning

Get pet food

Name of good or service

Who paid for it?

Who used it?

Name of good or service

Who paid for it?

Who used it?

Name of good or service

Who paid for it?

Who used it?

Name of good or service

Who paid for it?

Who used it?

Goods and Services Cards

house painter traffic lights and signs

“NO!” was her reply

“But Mommy!” I did cry

Mother gave a grin

She said, “Time and money

On Christmas Eve I asked

Mother shook her head,

“But Mommy,” I did cry

Pay to the order of The___________________Family $

Pay to the order of The___________________Family $

Pay to the order of The_________________Family $_

Pay to the order of The_______________Family $_