The 10 Principles of Economics

• Principle # ____: _______________________– 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 TradeoffsThe 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

Yea. You saved me but it cost you an ‘A’.

It took you 4 hours to beat

this level when you could’ve

been studying.