The 10 Principles of Economics Flashcards
First principle
People face tradeoffs
(There’s no such thing as a free lunch)
Seventh principle
Governments can sometimes help improve economic outcomes.
Ninth principle
Prices rise when the government prints too much money.
Who created the 10 principles of economics?
Gregory Mankiw
Eighth principle
The standard of living depends on the country’s production.
Third principle
Rational people think at the margin.
Who is Gregory Mankiw?
An American macroeconomist.
Second principle
The cost of something is what you give up to get it.
Fifth principle
Trade can make everyone better off.
Tenth principle
Society faces a short-run tradeoff between inflation and unemployment.
Fourth principle
Peopl respond to incentives.
Sixth principle
Markets are usually a good way to organize economic activity.
