Goods & Services
Items people buy, like food, toys, or clothes
What are goods?
The workers and their skills are used to produce goods and services.
What is human capital?
The amount of a product that is available to be sold.
What is supply?
The money people earn from working.
What is income?
When there are not enough resources to meet everyone’s wants.
What is scarcity?
Work people do for others, such as haircuts or teaching.
What are services?
Natural materials used to make goods, like soil, water, trees, or minerals.
What are natural resources?
How many people want a good or a service
What is demand?
Money kept for future needs or wants.
What is saving?
Because of scarcity, people must make these
What are choices?
The people or businesses that make goods or provide services.
Who are producers?
Tools, machines, and buildings are used to make goods.
What are capital resources?
When supply is low and demand is high, what usually happens to prices?
What is they go up?
A plan for how to spend and save money.
What is a budget?
When resources are limited, businesses must do this to decide what to produce.
What is prioritizing or choosing?
The people who buy and use goods and services
Who are consumers?
The person who takes a risk to start a business.
Who is an entrepreneur?
The exchange of goods and services between people or countries
What is trade?
Something a person wants to buy but must wait for because they do not have enough money yet.
What is a financial goal?
This happens when people want more of something than is available, causing higher prices or limits.
What is a shortage?
When a business makes more money than it spends.
What is profit?
The three types of productive resources are used by all economies.
What are natural, human, and capital resources?
Trade without the use of money.
What is bartering?
Choosing one option and giving up another, like buying a toy instead of saving for a bike.
What is an opportunity cost?
When people cannot have everything they want, they must make this kind of decision to pick the best option.
What is choosing their greatest need?