within economics, there are two important core themes.
First there is the supply side of the economic system. The supply side is characterized by the use of production. There are four (traditional) production are distinguished:
- Work
- Capital
- Nature (or natural resources)
The fourth factor in production is distinguished entrepreneurship.
At the supply side of the economy involves the production of goods and services. The maximum possible production is called production. The production factors have a (socially agreed) to pay, for work is wages, interest on capital is that, for nature (land) that lease, and finally for business is the profit.
On the other hand, the demand side of the economic system. This is determined by consumer spending (consumption), producers (investment), government (government spending) and foreign (export). Supply and demand come together on the market. By supply and demand together creates the price of a product. Products, goods and services in the free market are all driven by spontaneous rates. Prices are scarcity indicators in the public sector pricing driven by political decisions. The available budget determines the size of the goods here.