Mankiw's Ten Principles of Economics

I. How People Make Decisions
1. People face tradeoffs
2. The cost of something is what you give up to get it (opportunity cost).
3. Rational peole think at the margin
4. People respond to incentives

II. How People Interact
5. Trade can make everyone better off.
6. Markets are usually a goos way to organize economic activity.
7. Governments can sometimes improve market outcomes.

III. How the Economy as a Whole Works
8. A country's stardard of living depends on its ability to produce goods and services.
9. Prices rise when the government prints too much money.
10. Society faces a short-run tradeoff between inflation and unemployment.