Social Studies Focus 2024-2025 (Grades 5-6) PDF

# Social Studies Focus 2024-2025 ## Educating the leaders of tomorrow ### Texas, U.S., & World History ### Grades 5 & 6 ## UIL Social Studies Focus Topic 2024-2025 ### For 5th & 6th Grades ## Instructions for the Virginia Colony, the Mayflower Compact, & the Charter of Massachusetts Bay **Written...

# Social Studies Focus 2024-2025 ## Educating the leaders of tomorrow ### Texas, U.S., & World History ### Grades 5 & 6 ## UIL Social Studies Focus Topic 2024-2025 ### For 5th & 6th Grades ## Instructions for the Virginia Colony, the Mayflower Compact, & the Charter of Massachusetts Bay **Written by:** Linda Tarrant and Nancy Barnard **Edited by:** Beth Bryant ## Copyright Copyright © 2024 by Hexco Academic. All rights reserved. Reproduction or translation of any part of this work beyond that permitted by Section 107 or 108 of the 1976 United States Copyright Act without the permission of the copyright owner is unlawful. Exception/permission for photocopies granted by Hexco Academic is only applicable for Practice Packets and Invitational Tests as these products are expressly written for group or classroom testing. Invitational Tests may not be shared with other schools or districts before testing due to the confidential nature of the represented competitions. ## We are a small company that listens! If you have any questions or if there is an area that you would like fully explored, let us hear from you. We hope you enjoy this product and stay in contact with us throughout your academic journey. **~ President Hexco Inc., Linda Tarrant** ## Hexco Academic www.hexco.com P.O. Box 199 • Hunt, Texas 78024 Phone: 830.0367.3825 • Fax: 830.367.3824 Email: [email protected] ## If you like this product, we also recommend: * Social Studies Core Concepts for 5th & 6th * Social Studies Practice Packet of Tests for 5th & 6th * Social Studies Practice Packet of Tests in eMentor format ## Table of Contents - **United States** (60% of the test) - Colonial Period - Nations and Groups - Reasons for exploration and colonization - Major Settlements - Significant Colonial Leaders - Important Dates - Primary Source Documents - Instructions for the Virginia Colony - 1606 - Mayflower Compact - 1620 - The Charter of Massachusetts Bay- 1629 - Concepts in Economics - Major Industries of Colonial America - Economic Patterns of the European Colonists - Development of Free Enterprise in Colonies - Economic Terms Glossary - Concepts in Government and Citizenship - Representative Government in the Colonies - Current National Leaders - Government Terms Glossary - **World** (25-30% of the test) - Concepts in Economics - Types of Economies - Influences of Factors of Production - Benefits of Free Enterprise - Concepts in Government & Citizenship - Limited vs. Unlimited Governments - Development of Representative Governments. - **Texas** (10-15% of the test) - Concepts in History - Reasons for European Exploration and Settlement - Timeline of Significant Explorers - Concepts in Government and Citizenship in Texas - Characteristics of Spanish Colonial Government - Origins and Significance of State Celebrations. - **Index** ## United States (60% of the test) ### Colonial Period **A.** The colonial period began in 1492 and ended in 1763. **B.** The Spanish were among the first Europeans to arrive in the New World, and their focus was on the southern part of the U.S., the Gulf Coast of Texas, and throughout Texas and Mexico. **C.** The English, Dutch, French, and Swedes concentrated on the eastern coast of North America and Canada. **D.** In 1606, wealthy English merchants set sail from the Virginia Company of London to go to the New World and start a colony. 1. There were three ships that carried 144 men and boys and the crew. 2. The ships were very crowded and dirty. 3. It took them 144 days (more than four-and-a-half months) to reach Chesapeake Bay, which they named Cape Henry. 4. After landing they learned that they were on an island with limited game. - The people quickly realized that gold was nowhere to be found and food was scarce. - They were excited about the abundance of timber that they could sell and use to make ships. - They soon used up all the available game. **E.** All of the colonists were considered employees of the Virginia Company and were to be given tracts of land after seven years of service. 1. This was an exciting prospect as land was hard to come by in England. 2. They saw opportunities for the manufacture of glass, pitch, and tar. 3. The area that the colonists decided to settle was low and swampy, and the mosquitos carried malaria. 4. They had not brought enough food and were plagued by Native American attacks, poor water, sickness, and leadership problems. **F.** Between 1608 and 1609, 600 more colonists set sail for Virginia. 1. One of the ships was shipwrecked in Bermuda on the way. 2. When Sir Thomas Gates finally arrived to take up his new position as deputy governor, he found only 60 of the original colonists alive. 3. Most of these remaining people were starving and sick. **G.** The area experienced a drought in 1609 that ruined the few crops they had started. 1. A third supply fleet that was on its way was badly damaged during a storm. 2. The winter of 1609-1610 was very harsh, and the colonists did not have enough food to feed all the new arrivals. 3. They ate anything that was available, and starvation killed many. 4. The colony was in such bad shape that the colonists decided to abandon it. **H.** In 1610, a new group of people came and reclaimed the area to begin again. 1. John Rolfe was among that group. 2. He was a wealthy merchant and planned to grow a certain kind of tobacco that would be a cash crop. 3. He made the colony more successful. ### Nations and Groups - Reasons for exploration and colonization 1. Some colonizers represented the country sponsoring the colony, and their goal was to claim land for their country of origin. 2. Other colonizers were individuals who came to the New World to settle and start a new life. 3. The motivations that caused these different entities to want to colonize the New World were varied. 4. Some of the reasons countries created colonies include the following: - For some countries, the spread of Christianity was a national objective. - Countries wanted to expand and gain more territory. - As new oceanic navigation skills were acquired, England, France, and the Netherlands began searching for new areas to colonize. - It was a costly and dangerous journey for those who chose to board a ship and travel through unknown seas to reach a land that few had visited. - Another national objective of Spain, England, France, and to a lesser extent the Netherlands, was to prevent another country from gaining more land, wealth, and power. - To increase wealth in general was both a national and individual objective. 5. Reasons for many individuals to leave their old way of life and journey to a colony include the following: - Many people wanted religious or political freedom, and countries promised those who relocated religious freedom or a look-the-other-way policy in order to convince people to make the dangerous journey. - Catholicism was a religion based on a loyalty to the pope, or head of the Roman Catholic Church. - In 1517, Martin Luther, who ultimately founded the Lutheran Church, published a long list of criticisms of the Roman Catholic Church. - Others followed, and they became known as Protestants. - In 1534, the Church of England, a modified, reformed version of Catholicism, began when King Henry VIII wanted to divorce his first wife, Catherine of Aragon. - Divorce was not allowed at that time by the Catholic Church, so a new church was formed by King Henry with the Crown of England as the head. - This led to much disagreement. - Sephardic Jews who lived in the Iberian Peninsula often chose to relocate to the New World to avoid torture and persecution by the Inquisition; they were supposed to be Catholic converts, although many practiced their faith in secrecy. - Tolerance was observed by some Spanish empresarios who looked the other way if these often skilled artisans and scholars were willing to pretend to be Catholic on Sundays and colonize remote areas. - This benefited both parties. - They became known as the "Hidden Jews." - Many of their descendants are only now discovering their heritage. 6. Some people made the journey to escape from ongoing wars in Europe. - Many Germans were motivated to leave their regions because of the Thirty Years' War, which lasted from 1618 to 1648, between German principalities and France. - The Czechs who colonized were also motivated by wars and conflicts. 7. People were given the opportunity to own land or a business in the New World. - Land ownership was a great incentive to people who lived in countries where only the royals and gentry could own property. - Even after the colonial period, land was a great reason for people to move to a new location. - This philosophy was later used by the U.S. to promote westward expansion through the Homestead Act. 8. Many immigrants coming to the New World were teenagers who came from poor backgrounds and had no job prospects. - Their families signed agreements that gave them free passage on the ships to go to the Americas in return for working on plantations for no wages for five to seven years. - This was called indentured servitude. - After their contract time was served, they could go their own way. - Unfortunately, many immigrants died within a few years of arriving in the New World. 9. Another individual objective was to gain relief from debt. - Jails in much of England and Germany were filled with people who could not pay off a debt. - Jails were becoming overcrowded. - Yet the poor could not get a job so they borrowed money and soon found themselves back in jail because they could not pay back what they borrowed. - The colony of Georgia was founded by James Oglethorpe as an option for debtors to start over in the New World. ### Major Settlements 1. **Roanoke Island** - This was called the "Lost Colony," and it was first colonized under the English flag in 1585 by Sir Walter Raleigh. - It was short-lived but was reestablished in 1587 under Governor John White and disappeared again by 1590. - Virginia Dare, the first English child born in America, was born in this colony. 2. **Jamestown, Virginia** - The British Virginia Company established this colony in 1607. - It survived mainly because Captain John Smith enforced a "no work-no food" policy. - The governing of the colony was by the rules established in the Instructions for the Virginia Colony - 1606. - Smith established trade relations with natives and became a friend of Chief Powhatan, father of Pocahontas. - John Rolfe, a colonist, later married Pocahontas. - Rolfe grew tobacco and exported it to England, and this ultimately became a major cash crop. - The conditions under which the new colonists lived were very harsh. - The land was very swampy, and there was limited game to hunt. - More than 135 people died of malaria or from drinking the brackish water. - By 1610, only 60 of the original 500 men were still alive. 3. **Plymouth Colony** - The Mayflower landed at Cape Cod, Massachusetts and established the Plymouth Colony under the organization defined by the Mayflower Compact. - William Bradford, a separatist, was the leader of this colony. - Many of the strangers were skilled laborers and military leaders, such as Myles (Miles) Standish. - This colony ultimately merged with the Massachusetts Bay Colony. - This group set the stage for religious tolerance and government for the betterment of all. 4. **New Netherland** - Established in 1624 by the Dutch West India Company, this colony was located on Manhattan Island. - Their interest was in fur trade, not agriculture. - Peter Minuit became director of the colony two years later, and he purchased Manhattan Island from the natives and ordered the building of Fort Amsterdam. - The city outside the walls became New Amsterdam. 5. **Massachusetts Bay Colony** - Founded by owners of the Massachusetts Bay Company in 1623 and again in 1628, this English colony was primarily Puritan. - There was little tolerance for other religions, which caused friction and slow growth. - The Puritans, however, considered education important for all. 6. **Providence, Rhode Island** - After Roger Williams was exiled from the Massachusetts Bay Colony for his religious beliefs, he founded this colony in 1636 as a refuge for persecuted religious dissenters. - Williams was a Puritan chaplain. - This was the first colony to guarantee religious freedom. - Williams returned to England to seek recognition for the area as an English colony, and it became known as Providence Plantations, which included several colonies, and the area became one of the original 13 colonies. 7. **Connecticut Colony** - In 1636, Thomas Hooker, a Puritan leader who disagreed with leaders in Massachusetts, founded this colony at Hartford, Connecticut. - He established the First Church of Hartford and opened his sermons with, "the foundation of authority is laid in the free consent of the people." 8. **Fort Christina** - The first Swedish colony in North America was named after their queen in 1638. - Peter Minuit, who originally sailed for Holland, now sailed for the New Sweden Company. - He established a settlement in Delaware Bay which expanded to both sides of the Delaware River into modern Maryland and Pennsylvania. - They traded peacefully with the Lenni Lenape. - Swedes governed their towns until 1681, when William Penn obtained a charter for an English colony. 9. **Georgia** - In 1732, James Oglethorpe gained a charter to establish a colony in Georgia, which became the 13th colony. - It was to be for people in debtors' prisons in Europe. - The colony was planned as an agricultural settlement supported by family farms. - Oglethorpe envisioned a better life for these people in the New World after they were released from prison in England. - These colonists would receive 50 acres of land when they completed their service. - Slavery was originally banned in the colony. ### Significant Colonial Leaders 1. **Bradford, William** - (1590-1657) He led the Separatist settlers of Plymouth and was the second signer of the Mayflower Compact. He was elected governor 30 times. 2. **Hooker, Thomas** - (1585-1647) A Puritan leader and one of the founders of Connecticut, he emigrated first to Holland then to the colonies. He was a member of the Massachusetts Bay Colony who left with his congregation and settled in Hartford. He disagreed with John Winthrop over voting rights and thought that any adult male with land should be able to vote. Winthrop maintained that they also had to be a church member. 3. **Hutchinson, Anne Marbury** - (c. 1591-1643) Anne was an intelligent woman and natural leader. When she arrived at the Massachusetts Bay Colony in 1630, she took on many roles, including being a midwife, a nurse, and a leader in theological discussions. Hutchinson was excommunicated and banished from the colony for expressing her beliefs. She and many of her followers who believed as she did, moved to Rhode Island. 4. **Minuit, Peter** - (1580-1638) He came from Germany and was director of the Dutch colony called New Netherland. He founded New Sweden and purchased the land of Manhattan Island from Native Americans for about $680 in today's money. 5. **Oglethorpe, James** - (1696-1785) A British general and member of Parliament, Oglethorpe was a social reformer who founded the colony of Georgia with the intention of sending people from debtors' prisons to his colony in the New World. 6. **Penn, William** - (1644-1718) Penn was a founder and "Absolute Proprietor" of the Province of Pennsylvania, an English North American colony. He was known as an early champion of democracy and religious freedom and for his treaty with the Lenni Lenape. 7. **Raleigh, Sir Walter** - (1551-1618) He led numerous expeditions to the New World and tried to establish colonies at Roanoke twice. Both failed due to starvation or disease. He is best known for his harassment of Spanish ships that carried gold from the New World to Spain. 8. **Rolfe, John** - (1585-1622) He was a colonial leader of Jamestown. He was first to grow tobacco, and he proved that it could be profitably cultivated in the Virginia region and sent back to England. For a time, he held a virtual monopoly on this lucrative tobacco trade. He married Pocahontas, who was the daughter of Chief Powhatan. 9. **Smith, John** - (1580-1631) An English soldier, author, and explorer, he was active in establishing the first permanent English settlement in the Virginia Colony, which was based at Jamestown. He named the area New England. He also mapped the Chesapeake Bay area. 10. **Standish, Myles (or Miles)** - (1584-1656) An English military adviser for the Plymouth Colony, Standish arrived on the Mayflower and was active in governing the colony. 11. **White, John** - (1540-1606) He was an artist and illustrator who made many sketches of landscapes and native people in America on his voyage with Richard Greenville. He became governor of Roanoke Colony and then left to get supplies in 1587. His return was delayed due to England's war with Spain, and he found Roanoke abandoned upon his return. 12. **Williams, Roger** - (1603-1683) He was an English theologian and supporter of religious tolerance, separation of church and state, and fair treatment of Native Americans. He got the original charter to create the colony of Rhode Island. 13. **Winthrop, John** - (1587-1649) A Puritan leader, Winthrop joined the Massachusetts Bay Colony in 1629 and wanted to purify the Church of England. His ideas caused conflict with the Church of England. Winthrop participated in the group that banished Anne Hutchinson. He believed that the European diseases that killed off native populations were God's way of punishing them for their non-Christian beliefs. ### Important Dates (Dates that are in boldface type are significant.) 1. **1492** - This date marked the beginning of the European exploration period. Christopher Columbus reached the New World. 2. 1539 - Hernando de Soto explored the territory from the Gulf of Mexico to the Ozark Mountains. 3. **1585** - This date marked the beginning of the English colonization period in the New World. Roanoke became the first English colony in the New World when Sir Walter Raleigh reached the mainland under the English flag. The colony disappeared and was reestablished later, only to disappear again. 4. **1607**- Jamestown was established by the British Virginia Company under the leadership of Captain John Smith. Smith instituted a policy of "no work-no food." This meant that those who worked received their share of food, but those who didn't work went hungry. This policy made the colonists work and led to the survival of the colony. He realized that too much time was being spent searching for gold, and the colonists were not spending enough time taking care of their need for food and shelter. The governing of the colony followed rules established in the Instructions for the Virginia Colony - 1606. Colonists traded with the Native Americans and came to know Chief Powhatan and his daughter Pocahontas, who later married John Rolfe. 5. 1608 - Henry Hudson, an Englishman, explored for the Netherlands and the Dutch East India Company along what became the Hudson River. He established Fort Orange as a trading post near what became Albany, New York. 6. **1620** - The Pilgrims arrived in the New World on the Mayflower, landing at what is now Cape Cod, Massachusetts. The Mayflower Compact was signed in this same year, defining the rules for governing for the Massachusetts Bay Colony. 7. **1636** - This date marked the beginning of the conflict between colonists and Native Americans. The Pequot War started in southeast Connecticut, and continued for a period of two years. 8. **1643** - The New England Federation was established. 9. **1656** - The Quakers came to settle in the area of New England. ### Primary Source Documents 1. **Instructions for the Virginia Colony - 1606** - This document included instructions to the colonists who would settle Jamestown. - The instructions suggested finding the best possible place to put a fort, how to explore the land, and ways to fortify the settlement. - It also gave directives about interacting with Native Americans. - A safe port was defined as a place on some navigable river that ran far inland. - The settlement was to be far up the river, a safe distance from the mouth. - A small group was to be located at the mouth of the river to keep watch for any invasion by an enemy fleet. - No other habitation should be between these two points. - If the river had a branch, they were instructed to determine the better position for their settlement. - Before unloading their supplies, it was recommended that the captain explore up the river to be sure it seemed safe. - Some of the characteristics that made an area desirable included open, fertile land that was already fairly cleared and a had good water supply. - As soon as the area was selected, planting was to begin, but not in a swampy area and not using all of the original seeds in case the first crop was a failure. - The carpenters were advised to build a storehouse and a public building before beginning any private housing. - Colonists were encouraged to trade with the Native Americans and to guard against offending them; they were encouraged to stay together and work together for the good of the colony. 2. **Mayflower Compact - 1620** - This document was written aboard the Mayflower before it landed in the New World to establish Plymouth Colony. - The intention was to craft a working arrangement that would enable the colonists to work together with just and equal rules for all. - The colonists were fleeing from England and the religious persecution under King James I. - The voyagers who wrote this document were Separatists and Puritans. - The two groups collectively came to be called Pilgrims. - Much of the Compact was written by William Bradford. - The document defined three principles for those making the voyage. - The first was for the glory of God. - The second was for the advancement of the Christian faith. - The third was for the honor of their king and country. - The signers effectively made a 'compact' or pledge to work together to govern the colony and enact "just and equal laws, ordinances, acts, constitutions and offices" that they felt were necessary for survival of the colony. - All 41 signers were adult men. - Modifications were later made to the Compact as it was deemed necessary. 3. **The Charter of Massachusetts Bay - 1629** - This document represents a method of self-governing in the English colonies in the New World. It was a long and tedious document. - The Massachusetts Bay Company was a joint-stock company made up of merchants and landed gentry who received their charter from the Crown. - With this charter, the colonists took the first step in changing the trading post into a commonwealth. - This charter effectively became a constitution for the colony, and it had the following provisions: - The charter defined the boundaries of the colony and granted all the lands, ports, rivers, waters, fishing, mines, and minerals to the Council at Plymouth with the restriction that 1/5 of all gold and silver ore would be paid to the king or his successor. - Members of the council were identified and granted governing powers and perpetual succession in their positions. - They were instructed to act as one body to govern, make laws, prosecute suits, causes or quarrels, and to answer any claims. - They were given power to buy or sell land and to lease lands. - An annual election of a governor, deputy governor, and a company of 18 assistants was defined, and all were required to be freemen who would govern the colony. - A quorum of seven participants was required for any action. - The initial group filling these offices was appointed. - Members of this group were exempt from paying taxes for seven years and from certain import and export charges for 20 years. - Policies were made for payment of duties or customs on imports and exports. - A regular election day was established. ### Concepts in Economics **A.** The colonies were expected to benefit the homeland and to generate wealth for their mother country; this policy is called mercantilism. **B.** Some goods could only be shipped to England on English ships, while other goods could be sold to anyone as long as an English ship was used. **C.** Once the colonists were established, they proved to be very industrious and provided England with a significant income. **D.** Major Industries of Colonial America 1. **New England** - This area covered much of what is now six states: Maine, Massachusetts, New Hampshire, Vermont, Rhode Island, and Connecticut. This area began as Plymouth Colony and Massachusetts Bay Colony. - Much of New England's economy was based on the family farm and agriculture. - This area had poor farming conditions but was able to grow corn, pumpkins, squash, and beans after being taught by the Native Americans. - Land was granted in townships to adult males, who then worked the land. - They did not produce much of any one item, but rather they ensured that their families were well-fed and clothed, and led a comfortable lifestyle. - The Hudson River settlements were centered on fur trade and tenant farming. - Furs or pelts were obtained by hunting and trapping. - Most were exported to Europe. - Boston and Portsmouth became shipbuilding centers that were aided by the presence of abundant local timber. - As a result of having available timber, sawmills opened to turn the trees into usable lumber. - Fishing and whaling were major businesses because whale oil was burned in all lamps used by the colonists. Remember, there was no electricity! 2. **Middle Colonies** - This area covered much of what is now four states: Delaware, New Jersey, New York, and Pennsylvania. It began as New Netherland. - This area was known as the Breadbasket Colonies. - The soil was fertile, and timber was available. - They exported wheat, barley, and rye for profit. - They raised cattle and pigs for export to colonies and to Europe. - Slave labor was used on the larger farms. - There was a supply of iron ore in Delaware that was mined and processed into nails, gun parts, and other tools. - Manufacturing centers for crafts and items that required skilled labor were developed later. 3. **Southern Colonies** - This area covered much of what is present-day South Carolina, North Carolina, Maryland, Virginia, and Georgia. - Large farms and plantations produced a surplus of rice, tobacco, and eventually cotton. - These were cash crops that could be sold or traded to other colonists, or the crops could be sent back to England to earn money. - In the area that is now South Carolina, a blue dye was made from the indigo plant that was popular throughout the world. - In the tidewater areas, or coastal regions, many large landowners had their own docks that they used when shipping products abroad, and the farms were very large. Indentured servants and slave labor became essential to the operation of these plantations. - The wilderness settlements, at the foothills of the Appalachians, were largely self-sufficient, and the people were more likely to treat each other as equals. - These farms were smaller and worked without slave labor. People hunted game for meat. - Trading went on between small communities and local farms. ### Economic Patterns of the European Colonists 1. Trade essentially made a triangle between Europe, Africa, and North America. 2. There was some trade directly between the southern colonies in the U.S. and the colonies in the West Indies in the Caribbean. 3. England sent spices, furniture, cloth, and tools to the colonies and iron products to Africa. 4. Slaves and gold went from Africa to the West Indies. 5. Molasses, slaves, and sugar went from the West Indies to North America. 6. The North American colonies sent flour, fish, meat, and lumber to the West Indies and fish, whale oil, lumber, and tobacco to England. ### Development of Free Enterprise in Colonies 1. The free enterprise system revolves around the concept that businesses should be privately owned and that individuals should be allowed to create and run their own businesses. This system is the exact opposite of the mercantile system upon which the colonies were founded. 2. The initial system at Plymouth was set up with a socialist structure. - Survival was the most important thing at this point. - Survival depended upon a good harvest. - People would grow crops and bring their harvest to a community area where it would be distributed among all of the colonists. - Everyone received the same amount of food whether they worked or not. - Unfortunately, some people chose not to work, and those who did became resentful. Productivity was reduced. - Governor Bradford knew the colony would fail if something did not change; people were starving. - Bradford decided to give people some land; they could keep what they produced and sell or trade the extra. - The need for skilled labor grew due to the increasing number of immigrants. - Indentured servants arrived in great numbers. - When their length of service ended, many were granted parcels of land. - This gave them an opportunity to forge their own paths in the New World . - Many started businesses, and farmers sold their extra crops. 3. The fur trade was especially lucrative and promoted the concept of working for oneself; even trappers who were contracted to a large company such as Hudson's Bay were essentially self-employed. 4. Hat and coat makers prized beaver pelts, deerskins, and seal and otter skins. - Europeans and nations with cold winters increased the demand for fur, as did men's and women's fashions: beaver skin hats and hand muffs were considered high style. - The New England fur trade expanded as goods from Canada were smuggled into the colonies. - The Hudson's Bay Company gained a monopoly over all the rivers that emptied into the bay. 5. There were so many opportunities for colonists to have their own businesses and incentives to produce more than they could use themselves that the free enterprise system grew very quickly. ### Economic Terms Glossary - **agriculture** - This is any work done on a farm or large producing estate to grow food or animals to be used for food. The economy of the South during colonial times was built on agriculture. Primarily, they grew tobacco, cotton, indigo, sugarcane, and other foodstuffs. The large crops were grown to be exported to other countries. - **barter **- This is the basis for the traditional economy. To barter is to simply trade one item for another after two people arrive at a fair exchange rate for both. The Native American society was built on this concept. For colonists, if one had a cow and his neighbor had a chicken, the two could derive a value system to determine how much milk it was worth to trade for an egg. - **budget** - Budgets are made by most people to match the money that comes in as income to the money going out for expenses. A deficit in the budget means that there is more being spent on expenses than there is money coming in from the profits or income. A balanced budget is one that has the same amount of money coming in as money going out. - **capital** - This can either be currency or any other item of value or asset. For some Native American tribes, their wampum was their capital, and they used it to trade for other items. - **cash crop** - This is any type of agricultural crop grown specifically to be sold or traded to another. The crop has to have a value to be worth growing, and there has to be a demand to make it salable. With a cash crop, a grower is dependent on the supply and demand for the crop. A grower has to produce more than he or she needs in order to have a surplus to sell. The two primary cash crops in early colonial days were tobacco and cotton as there was a large demand for these. - **consumerism** - This is a social and economic order that encourages buying more than a person actually needs. It is usually associated with media culture whereby advertisers pump up the idea that everyone needs the latest fashion in shoes so that sales will skyrocket. This accumulates more items that are ultimately discarded when the next shoe fashion comes along. This is related to the want vs. need concept. - **debt** - A debt is something one person owes another person or entity that they are unable to pay all at once. They then finance the item to pay over a period of time after initially taking possession of the financed item. Most people buy cars and high-dollar items like furniture and appliances on credit. They put what money they can afford toward the purchase, which is usually just a portion of the selling price. The remaining balance is their debt. Interest on the money owed is often charged or a fee is charged for this service. - **demographics** - This term defines the makeup of a given population. In colonial times, the demographics of the South were primarily white landowners with black slaves. Things examined in determining demographics are usually gender, age, ethnicity, land ownership, employment, and other things that can be quantified. - **economy** - This system consists of the production, distribution, and consumption of goods and services by different individuals or businesses in an area. Transactions occur when two parties agree to the value or price of the item or service, and this is commonly expressed in a currency, but it can be defined in a bartering situation where goods are traded for goods. - **export** - An export is any item that is manufactured or grown in one country and shipped to another country for sale. Tobacco was grown in the early colonies, and much of it was exported to other countries. - **free enterprise** - This is an unrestricted economic system in which individuals or a company produce goods to satisfy the needs of consumers. A free enterprise economy is a capitalistic economy where supply and demand determine the pricing of items. In this system, if there is a large supply for an item, others are free to produce that item for sale in competition with the original producer. - **goods and services** - Goods are something that one can consume or use. Food, clothes, school books, cars, and appliances are considered goods. Services also need to be purchased, but are not something that can be held in one's hand. A service is something that someone does for you, such as a hair stylist, repairman, or an accountant who performs work in exchange for money. - **import** - An import is any item that is manufactured or grown in a foreign country and shipped to one’s own country for sale. Tea was not grown in the early colonies, and in order to have it available, it had to be imported from other countries. - **inflation** - This term means that prices have risen and the value of paychecks have not. Look at a family's grocery receipts for a one-week period. Then, look at the prices of the same items a year later. Most will have risen slightly. Inflation means that a person can buy less with the money that person has today than the individual could have purchased with the same amount in the past. - **interdependence** - Most individuals can't produce everything needed to survive. Many are dependent on others for one need or another. Food is produced in different areas based on soil type, growing season, and weather. People in the U.S. are dependent on people in other countries to grow foods that cannot be grown in this country. Often the equipment needed to produce goods comes from many different parts of the world.