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Ten Principles of Economics

  • Richard W Swinney
  • Jun 15
  • 1 min read

Principle #01: People face trade-offs.

Principle #02: The cost of something is what you give up to get it.

Principle #03: Rational people think at the margin.

Principle #04: People respond to incentives.

Principle #05: Trade can make everyone better off.

Principle #06: Markets are usually a good way to organize economic activity.

Principle #07: Governments can sometimes improve market outcomes.

Principle #08: A country's standard of living depends on its ability to produce goods and services.

Principle #09: Prices rise when the government prints too much money.

Principle #10: Society faces a short-run trade-off between inflation and unemployment.

 
 
 

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Principle #10

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Principle #09

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Principle #08

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