Basic Economic Concepts

 

 

1.  Scarcity Exists

 

2.  People Face Tradeoffs and Have to Make Choices

 

3.  The Cost of Anything is What you Give Up to Get It

 

4.  People are Rational and Make Decisions Based on Weighing Costs and Benefits

 

5.  People Respond to Incentives

 

6.  Voluntary Trade Can Make Everyone Better Off

 

7.  Markets Are a Good Way to Organize Economic Activity

 

8.  People Create Economic Systems That Influence Economic Decisions

 

9.  People’s Choices Have Consequences That Lie in the Future