Economics

Economics is the science of production and trade under a division of labor (market) society.

What is economic value?

The economic value of a good or service is what an individual would exchange for a given good or service.

What is production?

Production is the act of creating — shaping materials into values –– goods and services for future consumption.

What is capital?

Capital is savings from production reinvested in an industry to produce wealth.

What is interest?

Interest is the premium on a loan, that is added to the principal when the loan is due.

What is Say’s Law of Markets?

Say’s Law of Markets is the principle that supply constitutes demand. In Jean-Baptiste Say’s words: “products are paid for with products.”