Chapter 1 - The Ten Principals of Economics Flashcards
(10 cards)
1
Q
Principle One
A
People face trade-offs.
2
Q
Principle Two
A
The cost of something is what you give up to get it.
3
Q
Principle Three
A
Rational people think about the margin.
4
Q
Principle Four
A
People respond to incentives.
5
Q
Principle Five
A
Trade can make everyone better off.
6
Q
Principle Six
A
Markets are usually the best way to organize economic activity.
7
Q
Principle Seven
A
Governments can sometimes improve market outcomes.
8
Q
Principle Eight
A
A countries standard of living depends on its ability to produce goods and services.
9
Q
Principle Nine
A
Prices rise when the government prints too much money.
10
Q
Principle Ten
A
Society Faces a short-run trade-off between inflation and unemployment.
