5th Grade Economics

What We've Learned!

Big image

Goods and Services by Davin Stephens

Goods and services

Businesses sell goods and services. Some services sell goods. Some services are very expensive. Services buy goods to sell in their store. The goods go to people who want to buy them. When people buy goods they have to pay taxes. New goods and services can attract new customers. Some businesses buy new resources from farmers or other people. The money businesses earn doesn't stay with them for long. They have to spend it for more resources. The money left over goes to the owner. Goods and services are every where.

Mortgages, Yay or Nay? by Kennie Ecker

We see banks almost every day. We know you go there for money and all that other stuff. Banks are more than that though. They give out loans and issue credit cards. Today, we will talk about mortgages!

A mortgage loan is used by purchasers of real property to be purchased or by existing property owners to raise funds for any purpose. Think of it as a special loan. The bank basically buys the house for you. After you move in, you have to repay the bank, in monthly installments, over many years. The average term, or how many months the banks require you to repay, is usually around 30 years, or about 360 monthly payments. Almost always, you have to pay for a percentage of your home using your own money out of your own pocket. This is called the down payment. You also have to pay interest. Interest is basically the cost of borrowing the money. Let’s say you want to buy a house that cost $350,000. You go to a bank, get a mortgage, and buy the house. Now that you are living in the house, you pay the bank back what you owe, and some extra money, which is the interest. You will wind up paying more than $350,000. Unfortunately, many people default on the loan, or can’t pay the bank back. Since this happens so often, banks require you put up collateral. This is anything that they can take if you default. In a mortgage, the home itself is the collateral. So if you can’t pay them back, they can kick you out of your house and sell it! Most likely, your monthly payment cannot be more than 28% of the money that you earn, or the bank won’t trust you to pay them back. So now we have come to the big question… Are mortgages and loans the right choice?
Big image

Government by Morgan Westerman

The Government has three branches or three parts; Legislative, Judical, and Executive. I am going to talk about government all together. First, lets talk about taxes. Taxes are the money you pay for goods and services. You pay the government for schools, roads, and hospitals, buildings, state parks, Police Departments, Fire Departments, and other government associations. They help control the tax money…which keeps are economy “flowing”. We DO NOT want another Great Depression. The households can also pay the government if they want to build on government land. The government could own land because they use government money ; they own 81% of Nevada, 66% of Utah and 61% of Idaho. So in some states the government owns more than 50% of the land. In Nevada, they own 81%. How much land do the citizens own? They own 19%. That’s even less than 20%. The government can also own land because the Property Clause, which specifically gives the government power to own land. Over time the Supreme Court has ruled that not only does the government have permission to own land, but they enjoy broad rights in deciding what happens on that land. Even if a house goes in foreclosure, it is usually own by the bank that charged the bills in return for the money that was loaned to buy the house. Now I’m going to talk to you about the IRS. Also known as the Internal Revenue Service. The first year after ratification of the sixteenth amendment, no taxes were collected-instead, taxpayers simply completed the form and I.R.S. checked for accuracy. The I.R.S.’s workload jumped by ten-fold, triggering a master reconstructing. Professional tax collectors began to replace a system of “patronage” appointments. The I.R.S. doubled its staff, but was still processing 1917 returns in 1919. This summarizes the economic involvement of the government.

Where do Your Taxes Go? By Alexis Bailey

The government uses both households and businesses. It goes into businesses, because they use taxes that households pay to have enough money to run their businesses in the economy. Government goes it households because that’s where the government depends on getting there money from to make roads, schools, pay for army supplies, etc. How exactly do they get the taxes? Good Question! They collect the taxes by the IRS. The IRS stands for Internal Revenue Service. Some call it the Department of Treasury. That is a federal tax system or organization based in Washington, DC. In total the IRS collects 2.4 trillion every year!!!!They get a lot of taxes because there are so many taxpayers! How many, you ask? About 234 million, that’s a whole lot of taxpayers if you ask me! Although they only collect 85.5% of taxes from the taxpayers, they still get a lot of money. Sometimes the IRS gives refunds, but they are most known for collecting. Now let us talk about taxes. A tax is a compulsory contribution to state revenue, levied by of course, the government….Anyway; taxes are levied by the government on worker’s income and businesses profits or added to the cost of most or some goods, services, and transactions. Most tax amounts vary in how much you pay. For example, the AMT tax percent is only 28%,But the regular tax percent is only 36.9%.That’s the Real Deal with Alexis Bailey.

Big image

Businesses and Marketing by Laura Rodriguez and Peyton Mayhew

Advertising is important because it convinces people to buy a certain product. People who have a successful business have a spokesperson with a menacing voice that will convince you to buy some item or go to this place.

You may not notice this, but all the time you are advertising something: the clothes you are wearing all have a tag on them which most likely has a company name on it. Shoes are made by a company and then sold by another company. Makeup is also made from a business. So basically you are walking bill board.

Another example is Chick Fil A. They have very good advertising and it kind of makes you want to go there. ( not just because of the food.)

Banks by Caleb Ramey

A bank is a place that holds people's money. Banks can be owned by shareholders, depositors, or borrowers. Banks hold people's money and the people gain interest over time. Banks let people borrow your money for a price. A bank can make money by gaining interest over their securities. Banks and the economy both rely on each other. Banks make credit available to the public. The public borrows the money and purchases goods, and that helps the economy. Essentially without a banking and credit system, development would be very very slow or nonexistent. We feel a lot better when banks have our money and there's no money under our mattresses.