Lecture # 1A
iClicker – Frequency BD
APPLIA– Set up and do assignment. 11 pm.
10 Principles of Economics
How people make decisions:
• People face trade offs
• The cost of something is what you give up to get it. (Opportunity Cost)
• Rational people think at the margins. (Forward looking into additional cost and benefit)
• People respond to incentives.
How people interact with each other
• Trade can make everyone better off.