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Summary: Concept: Investing Definition: Investing occurs when people and businesses use money to purchase capital goods or to increase the skills and abilities of workers. Comprehension Questions: How did Saruni obtain his money? (His mother gave him the coins for the services he provided by helping her with market work on Saturdays.) What were some of the goods Saruni could buy in the market with his money? (He could buy roasted peanuts, chapati, rice cakes, sambusa, wooden toy trucks, kites, slingshots, and marbles, or he could save the money to buy a bicycle.) What kind of special good is the bicycle? (The bicycle is a capital good.) How is a capital good different from the other consumer goods in the market? (Capital goods are used to produce other goods and services. The bicycle would help Saruni's mother sell more of her goods in the market.) What good did he decide to buy? (He decided to invest his savings by buying a bicycle to help his mother carry the heavy goods to the market.) Did Saruni buy the bicycle? (No) How did Saruni get the bicycle? (The price was too high. His father, Murette, took Saruni's money and gave him his old bicycle because Murette had bought a new motorbike. However, through Yeyo, Murette gave the money back to Saruni.) How did Saruni plan to use the bicycle? (He used it to help his mother carry heavy goods to market. He purchased a capital good by investing in the bicycle.) Was Saruni happy with just a bicycle? (No, he would also like to have a cart to pull behind his bicycle so that he could lighten his mother's load. Saruni would like to invest in another capital good.) Other Concepts: Market, Goods and Services, Opportunity Cost, Trade and Money, Capital Resources
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