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Mankiw’s Ten Principles

April 27, 2011

Greg Mankiw’s Principles textbook has an opening chapter which tries to distill  economics down to ten principles. Since some of you may need to perform a similar task at a job interview at some point, I offer them to you for contemplation. Hopefully you’ll find that they map reasonably well onto what we’ve covered in the SGPE (but with much much more calculus).

  1. People face trade-offs
  2. The cost of something is what you give up to get it
  3. Rational people think at the margin
  4. People respond to incentives
  5. Trade can make everyone better off
  6. Markets are normally a good way to organise economic activity
  7. Governments can sometimes improve market outcomes
  8. A country’s standard 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 trade-off between inflation and unemployment

And if you prefer, you can have the principles in rap form, or in translation.

2 Comments leave one →
  1. Rob permalink
    April 30, 2011 1:43 pm

    “Hayek, like Hayeksplosives. . .”

  2. Rob permalink
    May 6, 2011 7:18 pm

    Japanese moon robots. This has nothing to do with Mankiw or rapping.

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