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10 Princple of Economy (How People Make Decision (The Cost pf something is…
10 Princple of Economy
How People Make Decision
The Cost pf something is what you give up
Making Decision Requires Comparing the cost of some action .
People Face Trade Off
Decide How to allocate her most valuable resource
Rational People think at the margin
People can achive their objectives ,given the opportunities they have
People Respond to Incentives
An incentives is something such as punishment or a reward
How the Economy as a whole works
Price rise when goverment prints to much money
An Increase in the overall level of prices in the economy
A country Standard of Living Depends on its Ability to produce Goods and services
The Quantity of Goods and Services produce from each hourof a worker time
Society Faces a short run trade off between inflation and unemployment
Fluctuations in economic activity such as employment and production
How People Interact
Maket are usually a good way to Organize Economic Activity
An economy that allocates resources through the decentralized decisons of many firms and households as they interact in markets for goods and services
Governments Can Sometimes Improve Market Outcome
Markets only works if property rights are enforced
Trade Can Make Everyone Better off
Trade can make everybody better off