The 10 Principles of Economics

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Ten Principles of Economics
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Presentation transcript:

The 10 Principles of Economics Define key terms Real life example of this principle

Rational People Think at the Margin +1 +900,000

Markets are Usually a Good Way to Organize Economic Activity

People Face Tradeoffs The more I spend on gaming equipment, the less money I have left for personal hygiene.

Prices Rise When the Government Prints Too Much Money Used socks for sale starting at $4,000/pair

Trade Can Make Everyone Better Off

A Country’s Standard of Living Depends on Its Ability to Produce Goods and Services

Governments Can Sometimes Improve Market Outcomes Share your wealth!

Society Faces a Short-Run Tradeoff Between Inflation and Unemployment … never mind…

People Respond to Incentives

The Cost of Something Is what you Give Up to Get It It took you 4 hours to beat this level when you could’ve been studying. Yea. You saved me but it cost you an ‘A’.