002 The economy and interest rates
👩🏫 Teacher’s Guide
Objective
Students will learn basic ideas about the economy, inflation, and interest rates in simple terms.
Teaching Notes
- Explain economy as jobs + spending + businesses working together.
- Introduce inflation as prices rising.
- Explain interest rates as the cost of borrowing money.
🧒 Student Worksheet
Concept and Helping Material
This lesson helps you learn The economy and interest rates and how outside forces influence business.
Vocabulary and Definition
- — The system of how money, jobs, and businesses work in a country.
- — The extra money paid when borrowing, or earned when saving.
- — When prices of goods and services increase over time.
- — Big world changes that can affect businesses, like disasters or wars.
- — The steps to make, move, and sell products.
Business QA
1. What is the economy?
2. How does the world around affect businesses?
3. What is a global event?
4. Name one example of a global event.
5. What is a supply chain?
6. How can supply chains be disrupted?
7. What is inflation?
8. How does inflation affect customers?
9. What is an interest rate?
10. Why do businesses borrow money?
11. How do high interest rates affect borrowing?
12. How do low interest rates affect borrowing?
13. What happens when the economy is strong?
14. What happens when the economy is weak?
15. Why do businesses watch economic changes?
16. How can world events change demand?
17. Why do prices rise when supply is low?
18. How can businesses adapt to change?
19. What is one risk of global changes?
20. Businesses succeed when they respond to the _____.
Hands-On Experiment or Activities
What You Need: paper, markers, event cards (storm, price rise, low interest).
What You Do: 1) Pretend you run a small store. 2) Draw an event card. 3) Decide how the event changes costs or customer demand. 4) Share how you would respond.
Think and Talk: What changed? What stayed the same?
Reflection
- How can world events affect businesses?
- What is inflation?
- How do interest rates affect borrowing?
- Why must businesses adapt to the economy?