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LESSON: PIG AND CROW
Lesson Summary
A crafty crow offers to trade magic seeds, a magic worm, and a magic egg to Pig in exchange for the baked goodies he has produced. At first, Pig is not sure he has made a wise trade, but finds out in the end that he has.
Concept: Trade
Definition: People trade (exchange) with each other to get the goods and services they want. To make trade easier, people use money.
Comprehension Questions
Did Pig and Crow trade goods or services?
Goods
Did Pig and Crow use money when they exchanged their goods?
No, they bartered.
What goods did Pig and Crow have to trade?
Pig had baked goods he had produced - cake, pie, bread pudding. Crow had "magic" items - seeds, a worm, and an egg.
Why did Pig and Crow trade (exchange)?
Pig wanted what Crow had and Crow wanted what Pig had. People only trade if they expect to gain from the trade.
Did Pig and Crow benefit from their trades?
Crow certainly did. At first Pig was not satisfied because he was told Crow's goods were "magic" and they actually were not. Pig was fooled! However, the magic items taught him hard work, patience, and wisdom - so Pig benefited from the trades after all!
Why do people benefit from trade (exchange)?
Each person values the good he receives more than the good he trades away.
When do people not benefit from trade (exchange)?
People sometimes don't benefit because they do not have complete information or have information that is not accurate. For example, if you buy a car that is a "lemon" you really aren't getting what you think you are, and thus probably won't benefit from that exchange.
Other Concepts: Goods
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