Economics 6th Grade

Economics The study of how people meet their wants and needs: what to produce; how to produce; and for whom to produce

Currency Generally accepted form of money issued by a government – used as a medium of exchange for goods and services -Ex: merchandise, commodities, workers, paper money

Barter Exchange goods or services for other goods or services without using money -Ex: bread exchanged for butter

Ex: Cars, books, cheerios, cell phone goods Something that you can touch or hold that consumers want that are supplied by producers.  Ex: Cars, books, cheerios, cell phone

services Services are things you cannot hold but that consumers want or need that are produced in the economy.  Examples: lawn care workers, dentists, barbers, waiters, etc 

The amount of a product that is available for the consumer to purchase supply The amount of a product that is available for the consumer to purchase `````````````````````````````` Ex: I have a bushel of apples to sell

demand How much consumers are able and willing to pay for the product Ex: Air Jordan's go from $100 to $75 more people will buy them

Not enough good/services to satisfy consumers scarcity Not enough good/services to satisfy consumers Ex: Ms. Reed doesn’t have enough pencils for all the students in the classroom.

producer People and/or companies which make and supply goods and services. Ex – Farmers, Ford Motor Company

A person/group/company who buys a service or product. Consumer A person/group/company who buys a service or product. Ex – a family that buys a car

Natural Resources Raw materials that come from earth (not man made) Examples – petroleum, gold, bananas, water, etc

Human Resources The workers needed to make and sell goods and services Ex - machine operator (human), cook, teacher, fire fighter

Capital Resources Items such as land, buildings, equipment & machines that help workers make goods & provide services Ex: hammer, mail truck, pen

specialization Producing only goods/services that an individual or country is good at to increase efficiency. Ex: Floridian Oranges

Competition More than one person/company is selling a good or service. This often lowers prices. Ex: Fast food restaurants – McDonalds, Wendy’s, Burger King

Trade The exchange of goods or services for other goods and services or money.

Import To receive goods/services from another country Ex: America buys and receives coffee beans from South America

Export To send goods/services to another country -Ex: US sends cars to other countries

Tariff Tax on imports

Market A place where people buy and sell goods or services Ex: Shopping mall, flea market, black market