1. Fourth Grade

2. Economics Economics is the act of transferring resources. It includes how people earn, spend, and save money.

3. Needs  Needs are things people need to survive.  Examples: Food, clothing, shelter, medical needs, water

4. Wants Wants are things that people do not need to survive. Examples: designer clothes, car, t.v., ipod, bike

5. Goods Goods are something that you can see or touch Examples: cookies, car, clothes, cell phone

6. Services A service is something that someone does for someone else Examples: lawyer, dentist, hair stylist

7. Scarcity Scarcity happens when there is not enough resources to fulfill a person’s wants or needs Examples: The store does not have enough sugar to make cookies. The gas station does not have enough gas.

8. Opportunity Cost Opportunity cost is what you must give up in order to have something else because you do not have enough resources. Examples: You go to the store to buy a video and a book. You only have enough money to purchase a book. The video is the opportunity cost.

9. Production Production is the act of putting all resources together in order to make a product or service Examples of production: growing corn, teaching a class, manufacturing a car Producer – a person who makes a product or service Examples: farmer, car manufacturer, teacher

10. Consumption Consumption is the act of using or consuming a product or service Examples of consumption: drinking milk, listening to a stereo, buying clothes Consumer – a person who uses a good or service Examples: customer at a clothing store, a student in a classroom

11. Factors of Production The four resources needed to produce a product or service Land (natural resources) – things found in nature Labor – the people needed to produce the product or service Capital – objects used to produce other goods and services Entrepreneurship – actions using all resources to put together a good or service