Table of ContentsEconomy. . . A household and an economy face many decisions: Society and Scarce Resources: Scarcity . . . Economics Economists study. . . Ten Principles of Economics Ten Principles of Economics Ten Principles of Economics 1. People face tradeoffs. 1. People face tradeoffs. 1. People face tradeoffs. 2. The cost of something is what you give up to get it. 2. The cost of something is what you give up to get it. 3. Rational people think at the margin. 4. People respond to incentives. 4. People respond to incentives. 5. Trade can make everyone better off. 6. Markets are usually a good way to organize economic activity. 6. Markets are usually a good way to organize economic activity. 6. Markets are usually a good way to organize economic activity. 7. Governments can sometimes improve market outcomes. 7. Governments can sometimes improve market outcomes. 7. Governments can sometimes improve market outcomes. 7. Governments can sometimes improve market outcomes. 8. The standard of living depends on a country’s production. 8. The standard of living depends on a country’s production. 8. The standard of living depends on a country’s production. 9. Prices rise when the government prints too much money. 10. Society faces a short-run tradeoff between inflation and unemployment. Summary Summary Summary |
Author: Mark P. Karscig
Email: stutes@mnstate.edu Home Page: web.mnstate.edu/stutes |