Markets

Economics

Economics

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

Economic Actor

Economic Actor

The economic actor — the entity that performs all economic decisions and actions — is the individual.

Economic Value

Economic Value

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

Production

Production

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

Consumption

Consumption

Consumption is the act of consuming or using (up) values.

Wealth

Wealth

Wealth is a material good or service that has value to human life (that has economic value.)

Division of Labor

Division of Labor

In a division of labor society, individuals create values for future trade as opposed to self-consumption.

Trade

Trade

Trade is the act of voluntarily exchanging one value for another. (Theft is when the value is exchanged involuntarily).

Prices

Prices

The price of a good or service are the values it is exchanged for.

Money

Money

Money is an asset used in a division of labor society as a medium for indirect exchange.

Free-Market

Free-Market

A free-market is a market free from the intiation of physical force, where all exchanges are voluntary.

Business Enterprise

Business Enterprise

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.

Profit and Loss

Profit and Loss

A business makes a financial profit/loss when its revenues are more/less than its costs.

Savings

Savings

Savings is wealth that is not consumed.

Capitals

Capitals

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

Entrepreneur

Entrepreneur

A capitalist (or entrepreneur) invests (and risks) capital in a business concern in the hopes of earning a profit in the future.

Interest

Interest

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

Pin It on Pinterest