When we understand that businesses and consumers make everyday decisions about consumption, production, and money, we can understand the basic assumptions of economics. Most economists define 3 basic assumptions.

1. Consumers choose products that they prefer and how valuable they are to the consumer.

2. Consumers work to maximize the use of a product, but businesses work to maximize the amount of profit that they can make.

3. Consumers make independent choices based on the knowledge that they can gather about particular products.