Foundations of economics
So what is Economics all about... listen to this...
And watch this...
The song and video are based on Greg Mankiw's 10 Principles of Economics... but what does each statement mean?
How People Make Decisions
How the Economy Works as A Whole
How People Interact
How People Make Decisions
- People Face Tradeoffs.
- The Cost of Something is What You Give Up to Get It.
- Rational People Think at the Margin.
- People Respond to Incentives.
How the Economy Works as A Whole
- Trade Can Make Everyone Better Off.
- Markets Are Usually a Good Way to Organize Economic Activity.
- Governments Can Sometimes Improve Market Outcomes.
How People Interact
- A Country's Standard of Living Depends on Its Ability to Produce Goods and Services.
- Prices Rise When the Government Prints Too Much Money.
- Society Faces a Short-Run Tradeoff Between Inflation and Unemployment.