Ten Principles of Modern Economics – Gregore Mankiw

  1. People face trade off. ( Trade off)
  2. The cost of something is what you give up to get it. (Opportunity cost)
  3. Rational people think at the margin. ( Marginal thinking)
  4. People respond to incentives. (Incentives)
  5. Trade can make everyone better off. (Trade)
  6. Markets are usually a good way to organize economic activity. (Market)
  7. Government can sometimes improve market outcome. (Government)
  8. A country’s standard of living depend on its ability to produce goods and services. (Productivity)
  9. Prices rise when the government print too much money. (Inflation)
  10. Society faces a short run trade off between inflation and unemployment. (Inflation vs Unemployment)

 

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