22 terms

4th Grade Economic Terms

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producers
People and firms that use resources to make goods and services.
supply
The amount of a good or service that producers are willing and able to offer for sale at each possible price during a given period of time.
demand
The quantity of a good or service that buyers are willing and able to buy at all possible prices during a period of time.
capital resources
Resources made and used to produce and distribute goods and services: examples include tools, machinery and buildings.
price
The amount of money that people pay when they buy a good or service; the amount they receive when they sell a good or service.
consumer
People who use goods and services to satisfy their personal needs and not for resale or in the production of other goods and services.
income
Payments earned by households for selling or renting their productive resources. May include salaries, wages, interest and dividends.
market economy
An economic system where free competition and prices are determined by the interaction of supply and demand.
natural resources
"Gifts of nature" that can be used to produce goods and services.
human resources
The health, education, experience, training, skills and values of people. Also known as human capital.
scarcity
The condition that exists because of unlimited wants and limited resources to satisfy those wants.
choices
Scarcity and unlimited wants force consumers to make these
services
Activities performed by people who get paid to DO something
Positive incentives
Rewards that influence people's behavior, like a sale or a coupon.
Negative incentives
Penalties that influence people's behavior, like a fine, or fee.
specialization
When someone does one thing well.
substitute good
What you got instead of what you really wanted
Voluntary Exchange
You can buy or sell what you choose, OR you can choose not to buy or sell.
Competition
Stores trying to sell more than other stores, which keeps prices low.
Productivity
How much a producer is able to produce
Division of Labor
When producers split up the work, and each person does one thing well.
Private Property Rights
Producers choose what human resources, capital resources, and natural resources they use.