Economy Essentials Study Guide
6th Grade Social Studies • Economics Unit
Economy Essentials Reference Sheet
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Keep this reference guide in your binder! It contains fundamental vocabulary and concepts to help you understand how societies produce, distribute, and consume resources.
Part 1: The Foundations of Economics
economics Core Concept
Definition: The study of how people, businesses, and countries make choices about resources, goods, and services.
Kid-Friendly Clue: Economics is all about choices! Because resources are limited (scarcity), we must decide what to make, buy, and save.
economic sector Structure
Definition: A part of an economy grouped by the kind of work people do or products they make.
Common Sectors: Primary (farming/mining), Secondary (factories/building), Tertiary (services like teaching & healthcare).
Part 2: Measuring Economic Health & Growth
economic indicator Measurement Tool
Definition: A piece of information, such as GDP or life expectancy, that helps show how an economy is doing.
Total Output
GDP Numbers
Living Standards
Life Expectancy & Literacy
Labor Market
Unemployment Rates
Gross Domestic Product (GDP)
Definition: The total value of goods and services produced in a country during a certain time, usually one year.
Think of it like: The nation's entire annual "receipt" for everything built, grown, and sold.
GDP per capita
Definition: A country's GDP divided by its population; it shows the average economic output per person.
The Math Formula:
Total GDP ÷ Total Population = GDP per Capita
Analogy Alert: A huge country might have a giant total GDP just because it has many people. GDP per capita helps us compare the average standard of living fairly between small and large countries!
Unit 1: Introduction to Global Economics Page 1 of 2
Part 3 • Systems & Classification
How Different Economies Function
Student Reference Notes
Pure Market (Individuals) Mixed Economy (Blend) Pure Command (Government)
The Economic Spectrum: Most countries today fall somewhere in the middle as mixed economies.
market economy
Free Enterprise
Definition: An economy in which individuals and private businesses make many economic decisions, and prices are influenced by supply and demand.
Key Driver: Profit, competition, consumer choices, and supply & demand.
command economy
Government Control
Definition: An economy in which the government controls many resources and makes many decisions about production and prices.
Key Driver: Central government planners decide what to make, who gets it, and how much it costs.
mixed economy
Real-World Blend
Definition: An economy that combines market choices with some government involvement.
Key Driver: Businesses have freedom to compete, while government creates laws and safety nets.
developing economy
Growth & Transition
Definition: An economy that is still experiencing major changes in income, industry, infrastructure, education, and access to services.
Income Rising incomes as workers transition to new industries
Industry Shifting from basic farming to manufacturing and tech
Infrastructure Building new roads, bridges, power grids, and internet
Services Expanding schools, hospitals, clean water, and sanitation
Quick Binder Review • Check Your Memory!
Test yourself with a classmate
1. Three Economic Questions: What to produce? How to produce it? Who gets to consume it?
2. Total vs. Average: GDP tells you total size; GDP per capita tells you average output per citizen.
3. Who Decides? Market = Buyers & Sellers. Command = Government. Mixed = Both working together.
Unit 1: Introduction to Global Economics Page 2 of 2
