Saturday, June 28, 2008

Principles of economics

  • People have tradeoffs
  • The cost of something is what you give up to get it
  • Rational people think at the margin
  • People respond to incentive
  • Trade can make everyone better off
  • Markets are usually a good way to organize economic activity
  • Governments sometimes improve market outcomes
  • A country’s standard of living depends on its ability to produce goods and services
  • Prices rise when the government prints too much money
  • Society faces short-run tradeoff between inflation and unemployment.

Richa Shukla

Globsyn Business School

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