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Mankiw 10 Principles

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Updated 2009-02-23 18:44

Mankiw's 10 Principles

Although the study of economics has many facets, the field is unified by several central ideas. The Ten Principles of Economics offer an overview of what economics is all about.

Table

NumberPrinciple
1People Face Tradeoffs
2The Cost of Something is What You Give Up to Get It
3Rational People Think at the Margin
4People Respond to Incentives
5Trade Can Make Everyone Better Off
6Markets Are Usually a Good Way to Organize Economic
7Governments Can Sometimes Improve Market Outcomes
8A Country’s Standard of Living Depends on Its Ability to Produce Goods and Services
9Prices Rise When the Government Prints Too Much Money
10Society Faces a Short-Run Tradeoff Between Inflation and Unemployment
The first four are about...how people make decisions
The second set of principles (three of them) are about...how the economy works as a whole
The final three principles are about...how people interact
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