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.