Economics is the study of how society manages its scarce resources.

Comparative advantage is the ability to produce a good at a lower cost than another producer.

In a perfect competitive market the firms are price adjusters.

An increase in income causes an increase in demand fornormal goods.

The consumers cost of living is measured by CPI .

The existence of money leads to greater specialization and to a higher standard of living.

Money is the only assets that functions as a store of value.