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