What is the Economy?

You might hear the word “economy” on the news. Sometimes, you hear the economy is good. Sometimes, you hear it is bad. What does that mean?

The economy is about how people make and spend money. The economy is made of people who buy things and sell things. Stores sell goods. Goods are things that we can buy, like these toys.

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You might hear the word “economy” on the news. Sometimes, you hear the economy is good. Sometimes, you hear it is bad. What does that mean?

People also buy and sell services. Services are things that people do for someone else. Haircuts and car repairs are services. This person brings food to other people. That is a service.

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You might hear the word “economy” on the news. Sometimes, you hear the economy is good. Sometimes, you hear it is bad. What does that mean?

When the economy is good, most people are not too worried about money. They have jobs. They have enough money to buy what they want.

When the
economy is bad, many people don’t have jobs. People can buy only what they
need.

This girl is
making a plan. She is saving her money. If she spends the money, she is part of
the economy!

What Do You Think? A friend asks you, “What is the economy?” What do you say?

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