What Is Economics?

Exchange is the trading of goods for money or for other goods. A market is any mechanism for buyers and sellers to exchange goods. A free market is a market in which buyers and sellers are generally free to decide what to exchange and under what terms. Money is anything generally accepted as a medium of exchange and thus useful for storing or measuring economic value. The price of a good is the amount of economic value that must be exchanged to acquire it. Demand is willingness and ability to buy. Supply is availability and proffer for sale. The scarcity of a good is the excess of its demand over its supply, and in a free market is measured by price.

clipped from humanknowledge.net Economics: the study of production, exchange, and consumption of goods by persons. Fundamental Concepts Economic value is utility or desirability to persons, especially as determined by free markets. Goods are anything which has economic value. The economic cost of a good is the economic value of the goods and resources expended to produce it. Economic efficiency is economic value divided by economic cost. Production is the transformation of economic resources into goods. Economic resources are any natural resources, human resources, or capital resources that are useful for production. Capital is any product that is has utility for production. Human resources are the labor, skills, and knowledge of persons. Exchange Consumption is any use of goods that subtracts from wealth without adding to production. Wealth is the economic value of what one owns minus what one owes. Income is change in net wealth plus the value of goods consumed.