Ten Principles of Economics:

1.2.1 How People Make Decisions:

• People face tradeoffs.
• The cost of something is what you give up getting it.
• Rational people think at the margin.
• People respond to incentives.

 1.2.2 How People Interact:

• Trade can make everyone better off.
• Markets are usually a good way to organize economic activity.
• Governments can sometimes improve economic outcomes.

1.2.3 How the Economy as a Whole Works:

• The standard of living depends on a country’s production.
• Prices rise when the government prints too much money.
• Society faces a short-run tradeoff between inflation and unemployment.

(Source: Gregory N. Mankiw)