Economic Cycles

Unit Review Sheet

Facts and Definitions

Lesson 1: Money

• A budget is a plan for how a person or family will spend and save money.

Lesson 2: Jobs

• People pay taxes on the money they make and the money they spend.
• People pay taxes to the government so that the government can provide the people with goods and services.

Lesson 3: If You Made A Million

• Interest is money paid or charged for the use of money or for borrowing money.
• When you deposit money in a bank, it grows because it earns interest.
• People can write checks that transfer money from their bank to another person in exchange for a good or service.
• A debt is the money you owe to a bank.

Lesson 4: Capital and Natural Resources

• Capital resources are special tools, materials, equipment, machines, and buildings that are used to make other goods and services.
• Natural resources are those that come from the earth.
• Human resources are the people who work to provide and produce goods and services.

Lesson 5: Producing and Consuming

• Consumers are people who purchase goods and services in the community.
• Producers are people who provide goods and services in the community.

Lesson 6: Supply and Demand

• Economic supply is how much of a good or service is available in an economy.
• Economic demand refers to the amount of a good or service consumers are willing to purchase at a given price.
• Economic equilibrium is the price where supply and demand are equal.

Lesson 7: Economics in Your Community

• Natural resources impact the economics of a community.
• The economics of a community change over time.

Lesson 8: Business and Advertising

• Advertisements are created by businesses to persuade people to purchase their goods or services.

Final Project: Becoming an Entrepreneur

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