Key concepts

Nine ideas at the base of the Austrian School, each on its own page: the Glossary definition, an explanation in plain words, an example and the Austrian view.

1. 01What is praxeology?The science of human action, which gives this site its name
2. 02Opportunity costWhat we give up every time we choose
3. 03Subjective theory of valueValue is not inside things
4. 04Marginal utilityThe value of the “last” unit
5. 05Time preferenceWhy “now” is worth more than “later”
6. 06Supply and demandHow prices form in the market
7. 07What is inflation?In plain words, from the Austrian point of view
8. 08Fiat moneyMoney by government decree, with no backing
9. 09Austrian business cycle theoryWhy a boom built on cheap credit ends in a bust