10 Principles Of Economics Flashcards
1
Q
Principle #1
A
People face trade offs
2
Q
Principle #2
A
The cost of something is what you give up to get it
3
Q
Principle #3
A
Rational people think at the margin
4
Q
Principle #4
A
People respond to incentives
5
Q
Principle #5
A
Trade can make everyone better off
6
Q
Principle #6
A
Markets are usually a good way to organize economic activity
7
Q
Principle #7
A
Governments can sometimes improve market outcomes
8
Q
Principle #8
A
A country’s standard of living depends on its ability to produce goods and services
9
Q
Principle #9
A
Prices rise when the government prints too much money
10
Q
Principle #10
A
Society faces a short run trade off between inflation and unemployment
