Glossary of Economic Terms

Economic terms for Virginia k-3 SOLs

Barter- the exchange of one good or service for another  Barter, Find, sell, trade, buy any item, service or real estate with TradeAway. Sell your home, buy a car, trade for a boat or vacation.       

BASIC NEEDS- things people have to have in order to live

Buyer also consumer- a person who buys or purchases goods or services

Capital resources- goods made by people and used to make other goods and services

MACHINES	TOOLS	BUILDINGS

Choice- people must choose one thing over another because they can't have everything they want or because there is a scarcity.

Cost-conscious- being aware of the worth of things (goods or services)

Economic choice- the decision a consumer makes when buying something

Goods- things people make and use and satisfy their needs and wants 

Human resources- people working to make goods and services                  

Interdependence-     depending on others for certain goods or services  

Money- that which is used to purchase goods (coins, paper money, and checks)

Natural resources- materials that come from nature (water, soil, wood, and coal)

Opportunity cost- what is given up when one is making a choice                                

or

or

Choose only one.

Saving- keeping money for the future and adding to it until a person has enough to make a future purchase          

                                   

Scarcity- limited resources (too many people want the same thing and there is not enough to go around)

Seller also producer- the person who makes or sells goods or services

Services- activities that satisfy people's needs and wants                                                                               

Specialization- being an expert in one job, product, or service           

                    Oil  Production                                            Shipbuilding

Wants- things people would like to have