Account
A record of money deposited or withdrawn from a bank.
Bank
A business that provides money services, such as cashing checks, making loans, and paying interest on accounts.
Barter
To trade goods and services without using money.
Budget
A plan showing how income is to be spent.
Capital Resources
Goods made and used to produce other goods and services.
Choice
To make a decision.
Circular Flow
A model of an economy showing the interactions between households and businesses as they exchange goods, services and resources in markets.
Consumers
People who buy and/or use goods and services to satisfy wants.
Costs/Benefits
The bad and good points related to making a decision.
Credit
Promise of payment at a future time in return for goods/services now.
Currency
Paper money that is used by a country.
Debit
Money owed on an account.
Demand
The amount that consumers are able and willing to buy at all possible prices at a given time.
Deposit
Money put into a bank account.
Division of Labor
When workers perform part of a production task.
Earn
To receive money for doing work.
Economic Systems
The way a society organizes the production, consumption and distribution of goods and services.
Economics
The study of the production, consumption and distribution of goods and services.
Employment
An occupation by which a person earns a living.
Entrepreneur
Someone who takes the risk of producing a product or starting a new business.
Exchange Rate
Ratio at which a unit of currency of one country can be exchanged for that of another country.
Exports
The goods and services that producers in one nation sell to buyers in other nations.
Federal Reserve Bank
The central banking organization in the United States.
Finance
The management of money.
Goods
Things that can satisfy people's wants.
Human Resources
Workers who make goods and provide services.
Imports
The goods and services that consumers in one nation buy from sellers in other nations.
Incentive
Things that influence the behavior of people.
Income
Amount of money you earn or receive from different sources.
Interdependent
When people and nations depend on one another for the goods and services they want.
Interest
Payments made for the use of money.
Invest
To use money to gain a profit.
Loss
The money a business loses after it pays its production costs.
Natural Resources
Gifts of nature used to make goods and services.
Needs
Things you must have to live.
Opportunity Cost
The next best choice that you give up.
Price
The amount that people pay when they buy a good or service.
Producers
People who use resources to make goods and services.
Profit
The money a business makes after it pays its production costs.
Public Goods
Goods and services that are provided by the government.
Resources
Things used to make goods and services.
Save
To keep money to spend later.
Scarcity
When there is not enough for all who want it.
Services
Activities that can satisfy people's wants.
Shortage
Having fewer goods, services or resources available than you want.
Specialization
When people produce only some of the goods and services they consume, then trade with others to get more of the things they want.
Spend
To use money to buy goods and services.
Standard of Living
A level of material comfort in everyday life that is measured by the goods and services available to an individual, group, or nation.
Supply
The amount that producers are able and willing to produce and sell at all possible prices at a given time.
Surplus
Having more goods, services or resources available than you want.
Taxes
Required payments of money made to governments by people and businesses that are used to provide goods and services.
Trade-offs
When you choose to get less of one thing in order to get more of something else.
Wants
Things people like and desire.
Withdrawal
Money taken out of a bank account.