Chapter 1 Macroeconomics

Principle 1
- People Face Trade-Offs
- Equality
- Efficiency
Principle 2
- The Cost of Something is What You Give Up to Get It
- Opportunity Cost
Principle 3
- Rational People Think At the Margin
- Marginal Change
- Rational People
Principle 4
- People Respond to Incentives
- Incentives
Principle 5

Trade Can Make Everyone Better Off
Principle 6
- Markets Are Usually a Good Way to Organize Economic Activity
- Market Economy
Prinicple 7
- Government Can Somtimes Improve Market Outcomes
- Property Rights
- Market Failure
- Externality
- Market Power
Principle 8
- A Country's Standard of Living Depends on It's Ability to Produce Goods and Services
- Productivity
Principle 9
- Prices Rise When the Government Prints Too Much Money
- Inflation
Principle 10
- Society Faces a Short Run Trade- Off Between Inflation and Unemployment
- Business Cycle

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amgallegos

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Card Set

Chapter 1 Macroeconomics

Description

Important stuff from chapter 1, macroeconomics

Updated

2012-01-18T15:22:27Z

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