Ohio Assessments for Educators (OAE) Early Childhood Practice Exam

First grade students learned about money and now study community helpers. Which concept would best extend their understanding of economics?

1. Services

2. Profit and loss

3. Scarcity

4. Supply and demand

The correct answer is: Services

Extending first graders' understanding of economics in the context of community helpers would most effectively be achieved through the concept of services. Community helpers, such as doctors, teachers, firefighters, and many others, play vital roles in their communities by providing essential services. This aligns perfectly with the students' current study focus, as they learn how these individuals contribute to the function of the community and enhance quality of life. Understanding the concept of services offers a relatable framework for young learners, connecting their experiences and observations of community helpers with the broader economic principle of providing value through work. This recognition of services provides a foundational understanding of how different roles in the community operate, which is essential for grasping important economic concepts later on. While concepts like profit and loss, scarcity, and supply and demand also relate to economics, they may not be as immediately applicable or relatable for first graders who are just beginning to explore these ideas. Services directly ties their learning to real-world applications, making it the most effective choice for extending their understanding of economics in this context.