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.