The document presents ten principles of economics, emphasizing the management of scarce resources in society. Key concepts include trade-offs, marginal thinking, and the role of incentives, trade, and government in economic interactions. It also highlights the relationship between a country's production capabilities, money supply, and the trade-off between inflation and unemployment.

1. Ten Principles of Economics
Chapter 1
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2. Economy
•Comes from the Greek word oikonomos, which
means “one who manages a household.” ???
•Like a household, a society faces countless
decisions. These decisions are important
because resources are scarce.
•Economics is the study of how society manages
its scarce resources.

3. What Economic is all about ?

5. How People Make Decisions
• Principle 1: People Face Trade-Offs
• Principle 2: The Cost of Something Is What You Give Up to Get It
• Principle 3: Rational People Think at the Margin
• Principle 4: People Respond to Incentives

6. How People Interact
• Principle 5: Trade Can Make Everyone Better Off
• Principle 6: Markets Are Usually a Good Way to Organize Economic
Activity
• Principle 7: Governments Can Sometimes Improve Market Outcomes

7. How the Economy as a Whole Works
• Principle 8: A Country’s Standard of Living Depends on Its Ability to
Produce Goods and Services
• Principle 9: Prices Rise When the Government Prints Too Much
Money
• Principle 10: Society Faces a Short-Run Trade-Off between Inflation
and Unemployment

9. Reference
• https://youtu.be/gI4sNJENUYo?si=JCzP3xqCjMKxrk0x
• https://youtu.be/k9W86gv7VQU?si=jf1wlB1bM5ua3yoq