Economics Basics (Foundations)

Haircut, mowing the lawn, cleaning, plumbers

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

Economic system based on customs.

Natural Resources, Human Resources, Capital Resources, Entrepreneur

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

Private Property, Freedom of Choice, Profit, Competition

Not having enough of something.

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

Value of alternatives given up in a tradeoff.

Tables, chairs, computers, printers

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

Air, water, food, shelter, clothes

Tangible things that you can see and touch.

Not having enough of something.

Resources are controlled by the government

Individuals who purchase goods or services

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

Goods or services that are required to live.

When you are giving up something to have something else

Resources are owned and controlled by the people

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