10 Principles of Economics

From Wikiversity

Gregory Mankiw in his Principles of Economics outlines Ten Principles of Economics that we will replicate here, they are:

1. People face tradeoffs
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
5. Trade can make everyone better off
6. Markets are usually a good way to organize economic activity
7. Governments can sometimes improve market outcomes
8. A country's standard of living depends on its ability to produce goods and services
9. Prices rise when the government prints too much money
10. Society faces a short-run tradeoff between Inflation and Unemployment

Contents 1 How People Make Decisions 2 How People Interact With Each Other 3 The Forces and Trends That Affect How The Economy as a Whole Works 4 See also

[edit] How People Make Decisions

1. People face tradeoffs

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

[edit] How People Interact With Each Other

5. Trade can make everyone better off

6. Markets are usually a good way to organize economic activity

7. Governments can sometimes improve market outcomes

[edit] The Forces and Trends That Affect How The Economy as a Whole Works

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 trade off between inflation and unemployment

[edit] See also

• School:Economics