You see, this factory makes diamond studded leather dog collars.  Megamoney makes leather  and sells it to me. Megamoney is a PRODUCER. A producer is anyone who makes or grows a good, or does a service to sell. The object of selling a good or a service is to make a profit. A PROFIT is money that you gain by selling a good or a service.

        Since I bought the leather, I am a CONSUMER. A consumer is anyone who buys a good or a service
I am also a producer beause I sell the collars.

        A LOSS is money that you lose. A producer will either have profit or loss. For example, if it cost me $50 to make a collar, and I sold it for $30, I lost $20.
 

POP QUIZ

1. If you buy a C.D. player at the mall, you are a _____.

                    a. producer
                    b. profit
                    c. consumer

2. If you open a lemonade stand, earn $25, pay your mom $10 for supplies, you have $15 ____.
 
 
                     a.loss
                     b.consumer
                     c.profit

3.Remember that lemonade stand you run? Since you sell the lemonade, you are a __.

                    a.producer
                    b.consumer 
                    c.profit
 

4. If you spend $20 on advertising and don't make any money, that $20 is a ___.

                     a.profit
                     b.loss
                     c.producer
 
 
 
 
 
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