MGT Notes

Reference, ‘Principles of Economics,’ by N. Gregory Mankiw, 3e, Pg 15

In the previous posts, we looked at the individual principles of economics. Here we will summarize them as outlined in the book.

• 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.
• Trade can make everyone better off.
• Markets are usually a good way to organize economic activity.
• Governments can sometimes improve market outcomes.
• A country’s standard of living depends on its ability to produce goods and services.
• Prices rise when governments print too much money.
• Society faces a short run tradeoff between Inflation & Unemployment.