Step 2: Consumers and Producers

 

CONSUMERS AND PRODUCERS

Key Terminology/Definitions 

Consumer -> someone who buys (demands) goods and services. All people are considered consumers as we all use goods and services

Producer -> an individual, business or organisation that makes goods and services to sell to consumers

Learning

The economy is full of producers creating and providing goods and services and consumers using those goods and services.

Consumers

A consumer is someone who buys (demands) goods and services.

All people are considered consumers as we all use goods and services. In Economics, we group consumers into households.

Make a list of 5 goods and services you have consumed in the last week.

Producers

A producer is a business or organisation that makes goods and services to sell to consumers. 

There are many businesses operating in your local community. Some are at set physical locations (shops and factories), others are mobile (van, truck) and others are in non-physical locations (online shopping).

Some of these businesses are one-person operations, others employ many people.

What businesses operate in your community? Make a list of 5 businesses and identify the good or service they produce.

Activity

Play the game to test your knowledge of goods, services, consumers and producers.

Application/Consolidation

With your desk partner: 

1. Identify and explain one way in which you are a consumer and one way in which you are a producer. 

2. Explain how consumers need producers and how producers need consumers.

Post it!

Add your findings to the comments below. Read through the comments to see the many ways we are all producers and consumers.