• How People Make Decisions
  • People Face Trade-offs
  • The Cost of Something Is What You Give 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 Outcomes
• 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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