TEN PRINCIPLES OF ECONOMICS
1. People face trade-offs.
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2. The cost of something is what you
give up to get it.
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3. Rational people think at the margin.
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4. People respond to incentives.
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5. Trade can make everyone better off.
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6. Markets are usually a good way to
organize economic activity.
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Governments can sometimes improve
market outcomes.
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8. A country’s standard of living
depends on its ability to produce
goods and services.
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9. Prices rise when the government prints too
much money.
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10. Society faces a short-run tradeoff between
inflation and unemployment.
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