Social Studies Core 5

Economics

The study of how people meet their wants and needs

Scarcity

Having a limited quantity of resources to meet unlimited wants

Opportunity cost

The cost of what you have to give up

Demand

The desire for a certain good or service

Supply

The amount of a good or service that is available for use

Producers

People or businesses that make and sell products

Consumers

People or businesses that buy or consume products

Market

An organized way for producers and consumers to trade goods and services

Profit

The money a company has left after subtracting the cost of doing business

Revenue

The money earned by selling goods and services

Specialization

The act of concentrating on a limited number of goods or activities

Competition

The struggle among producers for consumers money

Inflation

Growing economies that prices may increase overtime

Recession

A decline, an economic growth for six or more months in a row

Traditional economy

An economy in which people make economic decisions based on their customs and habits

Market economy

An economy in which individual consumers and producers make economic decisions

Command economy

In economy in which the central government makes all economic decisions

Mixed economy

An economy that combines elements of traditional market and command economic systems

Development

Economic growth, or an increase in living standards

Developed country

A country with a strong economy and a high standard of living

Developing countries

Countries with less productive economies and lower standards of living

Gross domestic product (GDP)

The total value of of all goods and services produced in a country in a year

Productivity

The amount of golden services produced given the amount of resources

Technology

The practical application of knowledge to accomplish a task