Question

What Are the 10 Principles of Economics?

Answer 1

The ten principles of economics are:

1. People face trade-offs.
2. Rational people think at the margin.
3. The cost of something is what you give up to get it.
4. Trade can make everyone better off.
5. People respond to incentives.
6. Governments can sometimes improve market outcomes.
7. Markets are usually a good way to organise economic activity.
8. Prices rise when the government prints too much money.
9. Society faces a short-run trade off between Inflation and unemployment.
10. A country’s standard of living depends on its ability to produce goods and services.