Economics studies how society manages its scarce resources and how people make decisions and interact with each other in the economy. It analyzes forces that affect the overall economy like growth, unemployment, and inflation. Economics is built upon 10 key principles regarding individual decision making, interaction, and how the overall economy works. These principles examine concepts like tradeoffs, costs, incentives, markets, and the relationship between inflation, unemployment, and monetary/fiscal policy. Understanding these fundamental principles provides the building blocks for more advanced economic analysis.