Economics

1. Mankew’s 10 Principles of
Economics
Md. Imran Bhuiyan
Id. No. Ev-1509050

2. Tradeoff

3. Making decisions requires trading off one goal against another

4. Opportunity
Cost

5. The Cost of Something is What You Give Up to Get It

6. Rational People
think at the
Margin

7. Less
Benefit
More
Benefit
Rational People
Marginal benefit of the action exceeds the marginal cost.

8. People respond to
Incentives

9. Behavior changes when costs or benefits change.

10. Trade can make
Every one better off

11. By trading with others, people can buy a greater variety of
goods or services.

12. Markets are usually a good
way to organize Economic
Activities

13. Market
Invisible hand leads the market to allocate resources
efficiently

14. Government can sometimes improve
Market Outcomes

15. GOVT.
Government sets regulations against monopolies and pollution.

16. A country’s Standard of Living
depends on it’s Ability to produce
Goods and Services

17. As a nation's productivity grows, so does its average income.

18. Prices rise when
Government prints too
much Money

19. Printing too much money requires more of the same money to buy goods and
services.

20. Society faces a short run Trade-
off between
Inflation and Unemployment

21. Reducing inflation often causes a temporary rise in unemployment.