1. Free Enterprise 3 rd grade

2. Free enterprise The freedom to start a business and sell, for profit, any product or service allowed by law.

3. good A product that people want that they can hold.

4. service The action that someone does for someone else. Producers are the people that provide goods and services.

5. Consumer A person who buys a product or service.

6. demand The desire or need for a product or service. When will the demand for a product be small? High?

7. supply The amount of goods offered for sale by a business. Explain the difference between supply and demand.

8. How Supply and Demand Work SUPPLYDEMANDPRICE High Low HighLowVery low LowHighVery high Low High

9. scarcity The condition of not being able to have all of the goods and services that you want. What are some causes of scarcity?

10. profit The amount of money left over after all the costs of running a business have been paid. When does a business make a profit? When do they do not?

11. saving The part of a person’s money that is not spent for good or services or used to pay taxes. savings

12. price What people will pay when they purchase a good or service, or what they receive when they sell a good or service. Money is often used to TRADE for goods or services.

13. market Wherever people buy goods and services. Where prices are determined.

14. competition The efforts of two businesses with the same products to get consumers to buy from them. What are some things that business do to compete?

15. interdependence Interdependence often occurs when people or countries depend on someone else to provide the goods or services they need. The US provides natural gas to many countries but receives the bulk of our oil from other countries We depend on farmers to grow the food we eat.