Ten Principles of Economics
What is the first principle of economics?
Trade-offs
Which principle states that people face trade-offs?
Trade-offs
What is the concept of scarcity in economics?
Limited resources compared to unlimited wants
Which principle explores the idea of opportunity cost?
Opportunity cost
What is a key element of the principle of incentives?
Rewards and punishments
Which principle focuses on the concept of markets?
Markets coordinate trade
What is the principle that analyzes the effects of government actions?
Governments can sometimes improve market outcomes
Which principle explores the idea of specialization?
Specialization can increase production
What is the principle that examines the long-term versus short-term trade-offs?
Rational people think at the margin
Which principle focuses on the role of technology and economic growth?
Productivity growth is crucial for rising living standards