Scarcity: Economists believe that “wants” exceed the resources available to satisfy them. If an item has a “price” it must be scarce.

Opportunity Cost: It is the value of what you give up when you make a decision. You decide to go to a movie with your best friend -- Jamie. -- You gave up doing something else in order to go to the movie.

Marginal Analysis: Economists emphasize the additional cost associated with producing or buying an additional unit of output.

Substitution: All items have substitutes

Competition: Even in centralized economies there is always