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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 and Services | 
