Economy Terms

6th Grade Social Studies

Economy

The study of making, selling, and buying goods and/or services or the study of business and how it works.

Resources

Human or natural materials used to produce goods and/or services.

Goods

Physical merchandise that can be made, grown, or sold.

Services

Something someone does for another person.

Trade/Barter

Exchange of goods or services.

Supply

The amount of goods or services that is available.

Demand

How much of a good or service is wanted.

Consumer

A person or business that buys goods and/or services.

Producer

A person or business that produces goods and/or services.

Opportunity cost

The good or service not bought, given a choice.

Profit

The amount of money made from selling a good or service.

Interdependence

Relying on each other.

Export

A good and/or service leaving a place.

Import

A good and/or service entering a place from another place.

Input

Something put into your business (money, resources, etc.).

Output

What you produce or turn out.

Specialization

Focusing all time, energy on a good and/or service.

Independence

Not relying on anyone or anything else.

Dependence

Relying on someone else.

Surplus

Having more of a good or service than needed.

Scarcity

Not having enough of a good or service.