Economics Per 1 Spring 2017

Thursday, January 4, 2018

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ECONOMIC PRINCIPLES

1) SCARCITY: Because of scarcity, people choose. All choices have an opportunity cost.

2) INCENTIVES: People generally respond to incentives in predictable ways.

3) TRADE: People gain when they trade voluntarily.

4) INSTITUTIONS: Institutions are the “rules of the game” that influence choices.

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