Economics is the science of production and trade under a division of labor (market) society.
The economic actor — the entity that performs all economic decisions and actions — is the individual.
The economic value of a good or service is what an individual would exchange for a given good or service.
Production is the act of creating — shaping materials into values –– goods and services for future consumption.
Consumption is the act of consuming or using (up) values.
Wealth is a material good or service that has value to human life (that has economic value.)
In a division of labor society, individuals create values for future trade as opposed to self-consumption.
Trade is the act of voluntarily exchanging one value for another. (Theft is when the value is exchanged involuntarily).
The price of a good or service are the values it is exchanged for.
Money is an asset used in a division of labor society as a medium for indirect exchange.
A free-market is a market free from the intiation of physical force, where all exchanges are voluntary.
Market competition is a peaceful form of cooperation.
A business (enterprise) is an organization that creates products/services to sell on the market with the goal of making a profit for its owners.
A business makes a financial profit/loss when its revenues are more/less than its costs.
Savings is wealth that is not consumed.
Capital is savings from production reinvested in an industry to produce wealth.
A capitalist (or entrepreneur) invests (and risks) capital in a business concern in the hopes of earning a profit in the future.
Interest is the premium on a loan, that is added to the principal when the loan is due.
Capital goods are those goods that businesses use to create products and services for consumers.
A profit is made by creating something of economic value that is more than the cost of producing it.
“Trickle Down” Economics is a straw man argument used to attack those who advocate tax cuts.
Say’s Law of Markets is the principle that supply constitutes demand. In Jean-Baptiste Say’s words: “products are paid for with products.”