Ten principles of Mankiw Flashcards
1
Q
- People Face Trade offs
A
- The Cost of Something is What You Give Up to Get It
2
Q
- Rational People Think at the Margin
A
- People Respond to Incentives
3
Q
- Trade Can Make Everyone Better Off
A
- Markets Are Usually a Good Way to Organize Economic Activity
4
Q
- The government can sometimes improves economic outcomes
A
- The standard of living depends upon country’s production
5
Q
- Prices Rise When the Government Prints Too Much Money
A
- Society Faces a Short-Run Tradeoff Between Inflation and Unemployment