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From Wheat Field to Bakery Counter

A loaf passes through several pairs of hands before it reaches a shop, and every stop adds work, tools and time. Because of that, the same grain is sold for a little more at each stage of the trip.

In the picture

  1. Sheaf of wheat on the lowest step
  2. Stone mill and open flour sack on the second step
  3. Brick oven with a baked loaf on the third step
  4. Shop counter with the wrapped loaf on the highest step

Examples

  • Milk leaves a farm, is bottled at a dairy, and costs more in the fridge of the corner shop.
  • Cotton becomes thread, then a t-shirt, then a shirt on a rack in a store, priced higher each time.

Quiz: From Wheat Field to Bakery Counter (Age 15)

  1. Why does a loaf sold in a shop cost more than the grain in the field it came from?

    • Because every stop along the way adds work, tools and time
    • Because the loaf becomes heavier at every stop along the way
    • Because a shop always charges more than a farm does
  2. In a chain that runs from a cotton field to a shirt shop, when is the same amount of material worth the least?

    • At the shop, because the shop sells to many people
    • In the middle, once the cotton has been spun into thread
    • Right at the start, in the field, before any work has been done to it
  3. A miller sells flour for more than they paid for the wheat. What does that difference mainly pay for?

    • The wheat the miller bought, counted a second time
    • The grinding work, the machinery and the time the miller put in
    • The higher price the shop will charge at the end of the chain

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Economics, Age 15