Principles of Economics Chapter 1
This chapter covers how people make decisions, how they interact, and how the economy as a whole works. It delves into principles such as tradeoffs, opportunity cost, rational thinking, and responding to incentives.
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About Principles of Economics Chapter 1
PowerPoint presentation about 'Principles of Economics Chapter 1'. This presentation describes the topic on This chapter covers how people make decisions, how they interact, and how the economy as a whole works. It delves into principles such as tradeoffs, opportunity cost, rational thinking, and responding to incentives.. The key topics included in this slideshow are . Download this presentation absolutely free.
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Slide110/22/20141 T T e e n n P P r r i i n n c c i i p p l l e e s s o o f f E E c c o o n n o o m m i i c c s s Chapter 1 Chapter 1
Slide210/22/20142 Outline Outline How People Make Decisions How People Make Decisions How People Interact How People Interact How the Economy as a Whole Works How the Economy as a Whole Works
Slide310/22/20143 How People Make Decisions How People Make Decisions Principle 1. People face tradeoffs Principle 1. People face tradeoffs Principle 2. The cost of something is what you give up to get it Principle 2. The cost of something is what you give up to get it Principle 3. Rational people think at the margin Principle 3. Rational people think at the margin Principle 4. People respond to incentives Principle 4. People respond to incentives
Slide410/22/20144 How People Interact How People Interact Principle 5. Trade can make everyone better off Principle 5. Trade can make everyone better off Principle 6. Markets are usually a good way to organize economic activity Principle 6. Markets are usually a good way to organize economic activity Principle 7. Governments can sometimes improve market outcomes Principle 7. Governments can sometimes improve market outcomes
Slide510/22/20145 How the Economy as a Whole Works How the Economy as a Whole Works Principle 8. A country’s standard of living depends on its ability to produce goods and services Principle 8. A country’s standard of living depends on its ability to produce goods and services Principle 9. Prices rise when the government prints too much money Principle 9. Prices rise when the government prints too much money Principle 10. Society faces a short-run tradeoff between inflation and unemployment Principle 10. Society faces a short-run tradeoff between inflation and unemployment
