Economic Concepts

Economic concepts encompass the principles that govern the production, distribution, and consumption of goods and services. Key ideas include supply and demand, which explain how prices are determined; opportunity cost, representing the value of what you give up when making a choice; and inflation, the rise in prices over time that reduces purchasing power. Markets are where buyers and sellers interact, and competition drives efficiency and innovation. Understanding these concepts helps individuals and businesses make informed decisions, ultimately influencing overall economic health and growth.