Question

Explain 10 principles of economics

Answer 1

Answer:

• People face trade-offs
• The cost of something is what you give up to get it
• Rational people think at the margin

• People respond to incentives

• Trade can make everyone better off

• Markets are usually a good way to organize economic activity

• Governments can 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 a short-run tradeoff between Inflation and unemployment.