Ten principles of Microeconomics

1. RESOURCES ARE SCARCE

1.1. Scarcity

2. a.How people make decisions

2.1. 1.People face trafe-offs

2.1.1. Efficiency

2.1.2. Equality

2.2. 2.The cost of sth is what you give up to get it

2.2.1. Opportunity cost

2.3. 3.Rational people think at the margin

2.3.1. Marginal change

2.4. 4.People respond to incentives

2.4.1. Incentive

3. b.How people interact

3.1. 5.Trade can make everyone better off

3.2. 6.Markets are usually a good way to organize economic activity

3.3. 7.Governments can sometimes improve market outcomes

4. c.How the economy as a whole works

4.1. 8.A country's standard of living depends on its ability to produce goods and services

4.2. 9.Prices rise when government prints too much money

4.3. 10.Society faces a short-run trade-off between inflation and unemployment