 Economics is the set of laws related to production, distribution, and consumption of goods and services
<p>
1. Scarce resources have to be allocated<br>
2. Price and demand are directly proportional<br>
3. Price and supply are inversely proportional<br>
4. Cost and Price are directly proportional<br>
5. Supply and demand are directly proportional<br>
<p>
Examples:<br>
- Free medical care, education are not possible (1)<br>
- A new hot item has a correspondingly high price (2)<br>
- Printing money causes inflation (3) <br>
- Reducing money supply causes deflation (3)<br>
- Raising wages arbitrarily increases prices (4)
- There are not many drive-in theaters (5)
<p>
Furthermore:<br>
1. Production precedes consumption<br>
2. Consumption is the final goal of production<br>
3. Production has costs<br>
4. Value is subjective<br>
5. Productivity determines the wage rate<br>
6. Expenditure is income and costs<br>
7. Money is not wealth<br>
8. Labor does not create value<br>
9. Profit is the entrepreneurial bonus<br>
10. All genuine laws of economics are logical laws<br>
