The principles of economic Flashcards
1
Q
Principal #1
deals with recources
A
Choice is necessary because resources are scares
2
Q
Principle #2
A
The opportunity cost of an atime is the true cost
3
Q
Principle #3
A
“How much” is a decision at the margin
4
Q
Principle #4
A
People respond to incentives
5
Q
Principle #5
A
Gains from trade
6
Q
Principle #6
A
market move toward equillibrium
7
Q
Principle #7
A
Resources should be use effiecently
8
Q
Principle #8
A
When a market can’t lead to effieceny the government will interviene to imrpove society welfare
9
Q
Principle #9
A
One person’s spending is another’s persons income
