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TEN PRINCIPLES OF ECONOMICS (ECONOMIC MODELS (The circular-flow diagram,…
TEN PRINCIPLES OF ECONOMICS
2)The Cost of something is what you give up to get it
4)People respond to incentives
3)Rational people think at the margin
5)Trade can make everyone better off
6) Markets are usually a good way to organize economic activity
7)Governments can sometimes improve market outcomes
8)A country's standard of living depends on its ability to produce goods and services
10)Society faces a short-run trade-off between inflation and unemployment
9) Prices rise when the government prints too much money
ECONOMIC MODELS
The circular-flow diagram
The production possibilities frontier
1)People face trade-offs example:food vs clothing
