Below are the Keystone Economic Principles™ and their related economic concepts.

Principle #1 – We all make choices

• Capital resources
• Choice
• Entrepreneurship
• Goods
• Human resources
• Natural resources
• Resource allocation
• Scarcity
• Services
• Wants & needs

Principle #2 – TANSTAAFLTM

• Cost
• Opportunity Cost
• Trade-off

Principle #3 – All choices have consequences

• Consequences
• Philanthropy/Stewardship
• Positive/Normative economics (using the first three principles as the basis for decision making)
• Saving

Principle #4 – Economic Systems Influence Choices

• Circular flow economic growth
• Consumer
• Economic systems
• Market
• Market structure
• Producer
• Property rights
• Regulation

Principle #5 – Incentives produce “predictable” responses

• Incentives

Principle #6 – Do what you do best, trade for the rest

• Absolute advantage
• Barter
• Comparative advantage
• Exports
• Imports
• Interdependence
• Trade
• Specialization

Principle #7 – Economic thinking is marginal thinking

• Cost/Benefit analysis
• Marginal analysis
• Utility

Principle #8 – Quantity and quality of resources

• Capital resources
• Economic growth
• Efficiency
• Entrepreneurship
• Factors of production
• Goods
• Human resources
• Natural resources
• Production possibilities
• Productivity
• Risk
• Technology
• Unemployment

Principle #9 – Prices are determined by the market forces of supply and demand and are constantly changing…

• Competition
• Demand
• Equilibrium
• Externalities
• Long-/Short-term
• Price
• Profit/loss
• Supply

Additional Relevant Economic Concepts:

Financial Terms:

• Banks
• Gross/Net
• Income
• Investment
• Money
• Monopoly
• Revenue
• Taxes

Governmental Policy:

• CPI
• Economic Indicators
• Fiscal policy
• GDP
• Inflation/Deflation
• Monetary policy
• Regulation
• Stagflation
• Taxes
• Unemployment