1.
Barter Economy (bartering): trading of goods and services without money
2.
Budget: a plan that shows income, spending and saving
3.
Capital resources: machines, tools and buildings that are used to produce goods and services
4.
Consumer: someone who buys goods or services
5.
Economic Choice: the decision to buy one thing instead of another. The thing you choose to buy is your economic choice.
6.
Good: Something people make or grow and then sell (food, clothing)
7.
Human Resources: the people working to produce goods and services
8.
Income: all the money a person earns
9.
Money economy: buying something using money, what we use today
10.
Natural Resources: materials that come from nature: water, wood, plants, soil, sunshine, coal, etc.
11.
Needs: Things we must have to live (food, clothing, shelter)
12.
Opportunity Cost: giving something up to get something else; what you give up when you make an economic choice. Example: You would like to buy a pencil and an eraser but only have enough money for one product. If you buy the pencil, that is your economic choice and the eraser is your opportunity cost.
13.
Producers: a person who makes a good or provides a service
14.
Products: goods and services
15.
Resources: items that are useful and needed to run a business. Some resources are scarce (could run out): wood, gasoline, coal
16.
Saving: putting money somewhere safe so it can be used later
17.
Scarcity: when there isn't enough of something to satisfy everyone's needs and wants. If something is scarce, it means there isn't enough of it. (If a store runs out of squinkies, there is a squinky scarcity.)
18.
Services: That workers do for others (car wash, hair cut)
19.
Specialization: when a person or group focus on producing one thing and are very good at it, this encourages trade because people want what they don't have
20.
Wants: Things we would like to have but can live without (video games, TV's, iPods)
