mankew's 10 principles of economics
TRANSCRIPT
Mankew’s 10 Principles of Economics
Md. Imran BhuiyanId. No. Ev-1509050
Tradeoff
Making decisions requires trading off one goal against another
Opportunity Cost
The Cost of Something is What You Give Up to Get It
Rational People think at the
Margin
Less Benefit
More Benefit
Rational People
Marginal benefit of the action exceeds the marginal cost.
People respond to Incentives
Behavior changes when costs or benefits change.
Trade can make Every one better off
By trading with others, people can buy a greater variety of goods or services.
Markets are usually a good way to organize Economic Activities
Market
Invisible hand leads the market to allocate resources efficiently
Government can sometimes improveMarket Outcomes
GOVT.
Government sets regulations against monopolies and pollution.
A country’s Standard of Living depends on it’s Ability to
produce Goods and Services
As a nation's productivity grows, so does its average income.
Prices rise when Government prints too
much Money
Printing too much money requires more of the same money to buy goods and services.
Society faces a short run Trade-off between
Inflation and Unemployment
Reducing inflation often causes a temporary rise in unemployment.