Principles Of Economics Flashcards
1
Q
Principle 1
A
People face trade-offs
2
Q
Principle 2
A
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
Government 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
