Some of my old notes from Econ 1A

I was going through a lot of junk that had piled up on my desk and on my bookshelf this morning and I came across some old notes of mine from my first weeks of my Economics 1A class. Economics always has fascinated me, not that I really study it much, but the underlying concepts of how societies deal with scarcity of resources. Here are the notes for those who care:

Econ 1A – Macro Economics
The Ten Principals of Economics

How people make decisions:
  • People face tradeoffs.
  • The cost of something is what one gives up to get it.
  • Rational people think at the margin.
  • People respond to incentives.
How people interact:
  • Trade can make everyone better off.
  • Markets are usually a good way to organize economic activity.
  • Governments can sometimes improve market outcome.
How the economy as a whole works:
  • A country’s standard of living depends on its ability to produce goods and services.
  • Prices rise when the government prints too much money.
  • Society faces a short-run trade off between inflation and unemployment.
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