Fourth Grade

EconomicsEconomics is the act of transferring

resources. It includes how people earn, spend, and save money.

Needs

Needs are things people need to survive.

Examples: Food, clothing, shelter, medical needs, water

Wants

Wants are things that people do not need to survive.

Examples: designer clothes, car, t.v., ipod, bike

GoodsGoods are something that you can see or

touchExamples: cookies, car, clothes, cell phone

ServicesA service is something that someone does

for someone elseExamples: lawyer, dentist, hair stylist

ScarcityScarcity happens when there is not enough

resources to fulfill a person’s wants or needs

Examples: The store does not have enough sugar to make cookies. The gas station does not have enough gas.

Opportunity CostOpportunity cost is what you must give up

in order to have something else because you do not have enough resources.

Examples: You go to the store to buy a video and a book. You only have enough money to purchase a book. The video is the opportunity cost.

ProductionProduction is the act of putting all resources

together in order to make a product or service

Examples of production: growing corn, teaching a class, manufacturing a car

Producer – a person who makes a product or service

Examples: farmer, car manufacturer, teacher

ConsumptionConsumption is the act of using or

consuming a product or service

Examples of consumption: drinking milk, listening to a stereo, buying clothes

Consumer – a person who uses a good or service

Examples: customer at a clothing store, a student in a classroom

Factors of ProductionThe four resources needed to produce a

product or serviceLand (natural resources) – things found in

nature Labor – the people needed to produce the

product or service Capital – objects used to produce other

goods and servicesEntrepreneurship – actions using all

resources to put together a good or service