Economics Basics (Foundations)

Individual owners are free to decide what to buy and what to produce

Private Property, Freedom of Choice, Profit, Competition

Goods and services that add comfort or pleasure to our life, but are not essential.

Resources are controlled by the government

Air, water, food, shelter, clothes

Constantly improving products, creating new innovations, and keeping prices low.

Haircut, mowing the lawn, cleaning, plumbers

Value of alternatives given up in a tradeoff.

Individuals who purchase goods or services

The study of producing goods and services to satisfy the needs and wants of consumers.

When you are giving up something to have something else

Tangible things that you can see and touch.

Economic system based on customs.

Resources are owned and controlled by the people

Natural Resources, Human Resources, Capital Resources, Entrepreneur

Tables, chairs, computers, printers

What to produce, how to produce it, and who to produce for.

Not having enough of something.

Goods or services that are required to live.

Intangible activities that use mostly labor to satisfy needs and wants.

Not having enough of something.