economics Vocabulary
JamWise Education TeamยทUpdated March 2026
The economics strand is a core part of the K-8 social studies curriculum. It encompasses 59 vocabulary terms that students encounter as they progress from kindergarten through 8th grade. Each term builds on previous knowledge, creating a spiral of deepening understanding that prepares learners for increasingly complex concepts.
Understanding economics vocabulary is essential for classroom discussions, assessments, and real-world application. Below you will find every term organized by grade level, so teachers and parents can quickly identify which words are appropriate for their students and explore definitions tailored to each developmental stage.
Kindergarten
(6 terms)
Job
Work that a person does to help others and earn money.
Money
Coins and bills that people use to buy things.
Needs
Things people must have to live, like food, water, and a home.
Shelter
A place that protects people from weather and keeps them safe, like a house or building.
Transportation
Ways to move people and things from one place to another, like cars, buses, and trains.
Wants
Things people would like to have but do not need to live, like toys or candy.
1st Grade
(7 terms)
Earn
To get money by working.
Goods
Things that are made or grown for people to buy, like food, clothes, and toys.
Needs
Things people must have to survive, such as food, water, clothing, and shelter.
Save
To keep your money and not spend it right away.
Services
Work that people do for others, like teaching, fixing things, or helping the sick.
Trade
Giving something you have to get something you want from someone else.
Wants
Things people would like to have but can live without, such as video games, candy, or a new bike.
2nd Grade
(8 terms)
Consumer
A person who buys and uses goods and services.
Goods
Physical products that are made, grown, or gathered to sell.
Market
A place where people buy and sell goods.
Price
How much money something costs.
Producer
A person or company that makes or grows goods for others to buy.
Resource
Something that people use to meet their needs, such as water, food, or wood.
Services
Activities that people do for others in exchange for payment, such as haircuts, medical care, or car repair.
Spend
To use money to buy something.
3rd Grade
(10 terms)
Barter
Trading one thing for another without using money.
Capital resources
The tools, machines, and buildings people use to produce goods and services.
Demand
How much people want to buy a product or service.
Economy
The way a community or country makes, buys, and sells goods and services.
Human resources
The people who work to make goods or provide services.
Income
Money that a person earns from working.
Scarce
When there is not enough of something for everyone who wants it.
Supply
The amount of a product or service that is available for people to buy.
Tax
Money that citizens pay to the government so it can provide things like roads, schools, and firefighters.
Transportation
The system of roads, trains, ships, and planes used to move people and goods from place to place.
4th Grade
(7 terms)
Agriculture
The practice of growing crops and raising animals for food and other products.
Entrepreneur
A person who starts a new business and takes a risk to make money.
Export
Goods that are sent to another country to be sold.
Import
Goods that are brought into a country from another place to be sold.
Industry
All the businesses that make a particular type of product or provide a particular service.
Opportunity cost
What you give up when you choose one thing over another.
Profit
The money a business makes after paying for all its costs.
5th Grade
(6 terms)
Boycott
Refusing to buy or use something as a way to protest or force a change.
Capitalism
An economic system where individuals and businesses own property and decide what to produce and sell.
Currency
The money used in a particular country, like dollars in the United States.
Free enterprise
An economic system where businesses are free to operate with little government control.
Specialization
When a person, business, or region focuses on making one product or providing one service really well.
Tariff
A tax on goods brought into a country from another country.
6th Grade
(8 terms)
Commerce
The buying and selling of goods and services, especially on a large scale between cities or countries.
Economy
The system of how a country or region manages its money, resources, production, and trade of goods and services.
Gross domestic product
The total value of all goods and services produced in a country in one year, used to measure a nation's economic strength.
Inflation
A general rise in the prices of goods and services over time, meaning money buys less than it used to.
Scarcity
The economic problem of having unlimited wants but limited resources available to satisfy those wants.
Silk road
An ancient network of trade routes connecting China to the Mediterranean, used to trade silk, spices, and ideas for over 1,500 years.
Subsistence farming
Growing just enough food to feed your own family, with little or nothing left over to sell.
Trade route
A path or route used by traders to transport and exchange goods between distant regions.
7th Grade
(8 terms)
Command economy
An economic system where the government makes all major decisions about what to produce, how much to produce, and what prices to charge.
Globalization
The process of countries becoming more connected through trade, communication, technology, and cultural exchange.
Interdependence
When countries rely on each other for goods, services, or resources that they cannot produce efficiently on their own.
Market economy
An economic system where prices and production are determined by supply and demand with minimal government intervention.
Mercantilism
An economic theory from the 1500s-1700s in which a nation's power depended on its wealth, measured by gold and silver, and colonies existed to enrich the mother country.
Mixed economy
An economic system that combines elements of both market and command economies, with some government regulation alongside private business.
Natural resources
Materials found in nature that have economic value, such as oil, minerals, water, and timber.
Tariff
A tax placed on imported goods, designed to make foreign products more expensive and protect domestic industries.
8th Grade
(6 terms)
Fiscal policy
Government decisions about spending and taxation used to influence the economy.
Labor union
An organization of workers formed to protect their rights, negotiate better wages, and improve working conditions through collective bargaining.
Monopoly
A market situation where a single company or group has exclusive control over the supply of a product or service, eliminating competition.
Recession
A period of temporary economic decline during which trade and industrial activity are reduced, typically identified by a fall in GDP for two consecutive quarters.
Stock market
A system where shares of publicly owned companies are bought and sold, allowing businesses to raise money and investors to share in profits.
Supply and demand
An economic principle where the price of goods rises when demand exceeds supply and falls when supply exceeds demand.