Simplifying economics; below are the main principles for students of business to better understand the function of markets, exchange and business activities.
1) Demand
& Supply
determines Price, availability and economic activities
2) Resources
are scarce
3) Everyone
faces tradeoffs: The cost of something is what
you give up to get it.
4) Rational
people think at the margin
4) Everyone
responds to incentives
5) Everyone benefits from trade
6) Markets are a good way to organize economic activity.
7) The government can improve market outcomes
(Monitoring/Regulating/legislating).
8) A country's
standard of living depends on its ability to produce goods and services.
9) Prices rise as the government prints
too much money.
10) Society
faces a short-run tradeoff between inflation and
unemployment.
11) Risk is an essential component of economics as relates
to debt and growth
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