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Econ Ten Principles
Question | Answer |
---|---|
Principle 1 | People face trade-offs. |
Principle 2 | The cost of something is what you give up to get it. |
Principle 3 | Rational People Think at the Margins. |
Principle 4 | People respond to incentives. |
Principle 5 | Trade can make everyone better off. |
Principle 6 | Markets are usually a good way to organize economic activity. |
Principle 7 | Governments can sometimes improve market outcomes. |
Principle 8 | A country's standards of living depends on its ability to produce goods and services. |
Principle 9 | Prices rise when the Government prints too much money. |
Principle 10 | Society faces a short run trade-off between inflation & unemployment. |