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Life Skills·Money & Finance·conceptual

How the Economy Works

What an economy is; producers and consumers; supply and demand; why prices change; the basics of how markets work

Suggested ages 9–11

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Evidence of understanding

  • Explain what 'supply and demand' means using a simple example (ice cream on a hot day)
  • Describe the difference between a producer and a consumer
  • Give a reason why the price of something might go up or down

Assessment prompt

Could How the Economy Works explain why ice cream might cost more at the beach in summer than at a supermarket in winter?

Standards alignment

No external standards are linked to this topic.