Scarcity- If I want to go buy a diamonds chain with the bling bling, it would be considered a scarce resource because not everybody can own diamonds, they are only available to does with lots of money. They cost lots of money because there is not enough for everybody to go around.
Choices- When I make choices, normally it is when you choose the color of a truck, either you buy a blue truck or you buy a red truck.
Opportunity Cost- When I must make decisions like either I go to the game or I stay home to finish the big project do the next day, If I go to the game I get to hang out with my friends and have a lot of fun, the cost of going to the game is that I would probably get a failing grade on that big project that was do the next day. That concept is also applied to when you stay and do your homework, you do the work but the cost is you miss out of hanging with your friends.
Goods and Services- When you own a pool at your house, you hire the pool cleaners who use goods like chlorine and they offer their services by cleaning your pool for a cost.
Buyers and Sellers Marginal Cost- If I own a company it would cost me more money to make an extra product of something because I would have to pay more workers and I would have to use more energy to make that extra product, so that would be a loss of money from my company.
Monetary and Non-Monetary incentive- when you describe monetary, it is like if you had a career in engineering, you have that job because you like the money it pays. A non-monetary concept is if I had a job like being a teacher and I had the opportunity to tutor for fun, not because I have too.
Renewable and Non Renewable Natural Resources- If I owned a park I can tear down the trees because I can replace them for new ones but if I use up the water resource I cannot replace the water that was wasted.
2. .
The relationship between Adam Smith and the economy is that Adam Smith believed that the government should not interfere with the market economy.
