school life rebirths…
Principles of Economics
1. The cost of something is the things that you give up to get it (”opportunity cost”)
The opportunity cost of a advertising is the value of the next best alternative give up because of that decision
2. People Face Tradeoff To get one thing that we want, we need to throw something else that we also want
3. Rational people think of that margin
“Marginal” small incrimational change
“Rational People” makes decisions based on comparing two similar…
4. Trade can make and everyone better off
-Can (it’s possible, not gurantee)
-everybody“…”
5. People response be in incentives
As costs or benefits change, people’s decisions will change…
6. Markets are often a good way to orginize economic activity
7. Governments can inprove market outcomes at times
8. A country’s standard of living depends on its ability to produce services and goods.
9. Prices rise when the government prints too much money than the previous
10. Socity faces a short-run trade-off between inflation and unemployment