Economic principles refer to the fundamental concepts and theories that guide decision-making in the production, distribution, and consumption of goods and services within an economy.
Related terms
Supply and Demand: The relationship between the availability of a product or service (supply) and how much people want it (demand).
Opportunity Cost: The value of what is given up when choosing one option over another.
Comparative Advantage: The ability of an individual, region, or country to produce a good or service at a lower opportunity cost than others.