Economics concepts(1): wants : want is desire; demand is a desire supported by the ability($$$$$) to satisfy the desire: unlimited wants : for what we desire, we always prefer more to less, and we have new wants when other wants are satisfied.

Scarcity -----$$$$$$$$ there is scarcity when ever resources are insufficient to satisfy all our wants fixed supply----$$$$$$$$ Economics concepts(2):

Economics concepts(3): Choice because of the scarcity, we have to make choice, we have to choose which wants to satisfy and which wants to give up.

Economics concepts(4): Opportunity cost the best alternative or highest-valued option forgone

If you choose choice (1), the opportunity cost is the choice (2). If you choose choice (2), the opportunity cost is the choice (1). If you choose choice (3), the opportunity cost is the choice (1).

Question:What is the opportunity cost if you choose choice (4)???????????????? Ans.: the opportunity cost is choice (1) if you choose choice (4).

For producers are concerned with what goods and in what quantities these goods are to be produced

For producers are concerned with the method of production.

For producers are concerned with who is to get how much of society’s output

Social structure is rigid; changes take place slowly production methods are primitive low standard of living

Private property rights freedom of contract decentralized decision-making reliance on price competition

Public ownership of productive resources restriction on freedom of contract centralized decision-making non-reliance on price competition

Features of tradition economy, market economy and command economy